Interest paid by a co-operative bank to another co-operative...

Interest paid by a co-operative bank to another co-operative society, including a non-member, qualifies for the inter-society TDS exemption under Section 194A(3)(v), including on time deposits. The exclusion of co-operative banks from the member-payment limb does not apply to the separate inter-society limb. A separate proviso requires deduction where specified turnover and annual interest thresholds are both met; its applicability must be examined for the relevant transaction and period. Section 80P concerns assessment-stage deductions and does not determine the payer's withholding duty. Where the exemption applies and no deduction is required, assessee-in-default liability and consequential interest under Section 201 do not arise.