https://www.taxtmi.com/caselaws?id=417789 Interest earned by a credit co-operative society on deposits made under statutory compulsion requires examination of whether the deposits have a business nexus with providing credit facilities to members. Deposits mandated for reserve or other statutory funds may support deduction under section 80P(2)(a)(i), unlike voluntary investment of surplus funds. Where the interest is assessed as income from other sources, taxation should be limited to net income after allowing proportionate expenditure incurred to earn it under section 57. The applicability of these deductions depends on factual verification of the statutory requirement and the nature of the deposits. en-us Thu, 27 Jan 2022 00:00:00 +0530 Tue, 01 Feb 2022 08:31:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=417789 Interest earned by a credit co-operative society on deposits made under statutory compulsion requires examination of whether the deposits have a business nexus with providing credit facilities to members. Deposits mandated for reserve or other statutory funds may support deduction under section 80P(2)(a)(i), unlike voluntary investment of surplus funds. Where the interest is assessed as income from other sources, taxation should be limited to net income after allowing proportionate expenditure incurred to earn it under section 57. The applicability of these deductions depends on factual verification of the statutory requirement and the nature of the deposits. Case-Laws Income Tax Thu, 27 Jan 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=417789