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?

[Rama Krishana]

I think your case may be covered by the decisin of Supreme Court in which apex court held that interest income from fixed deposits is not exempt u/s 10(29) - Visit 2008 -TMI - 5742 - SUPREME Court

AI Summary

Interest exemption: interest from fixed deposits is not exempt under section 10(29), affecting co-op societies. Query whether a housing co-operative society may keep surplus funds in nationalised banks and claim exemption of the resulting interest; respondent cites a Supreme Court decision holding that interest income from fixed deposits is not exempt under the relevant exemption provision, indicating interest on bank fixed deposits does not qualify for that exemption.