Surplus fund - claiming exemption of interest

[ASHISH DESAI]

can a housing co-op society keep surplus fund in nationalised banks like bank of maharashtra & claim exemption of interest income from BOM. or only interest earned on Fixed Deposits with co-op. banks is exempts?

AI Summary

Housing Society's Interest Income from Nationalized Banks Not Exempt Under Section 10(29) of Income Tax Act A housing cooperative society inquired whether it could keep surplus funds in nationalized banks, such as the Bank of Maharashtra, and claim an exemption on interest income, or if the exemption applies only to interest earned on fixed deposits with cooperative banks. A respondent referenced a Supreme Court decision indicating that interest income from fixed deposits is not exempt under section 10(29) of the Income Tax Act.