Section 80P deduction is available to a Souharda co-operative...

Section 80P deduction is available to a Souharda co-operative society registered under the Karnataka Souharda Sahakari Act, 1997, for income from providing credit facilities to members. Interest on short-term bank deposits from surplus business funds may also qualify where the funds are not members' retained amounts or liabilities, because income "attributable to" the credit-facility business has wider scope than income "derived from" it. Cash deposits in demonetised notes require member identity verification through complete KYC details; creditworthiness need not ordinarily be established. Any unexplained-money addition surviving verification is subject to the amended higher tax rate applicable from assessment year 2017-18.