https://www.taxtmi.com/caselaws?id=470702 Interest on deposits that a primary agricultural co-operative society must maintain under Karnataka co-operative law forms operational business income from providing credit facilities to members and qualifies for deduction under section 80P(2)(a)(i). Such mandatory deposits are distinct from voluntary investment of surplus funds. Interest on deposits exceeding the verified statutory requirement may be assessed as income from other sources; however, only net income is taxable after deduction of directly attributable proportionate expenditure. The mandatory deposit quantum must therefore be determined before applying the deduction and tax treatment. en-us Tue, 16 Sep 2025 00:00:00 +0530 Tue, 04 Aug 2026 20:51:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=470702 Interest on deposits that a primary agricultural co-operative society must maintain under Karnataka co-operative law forms operational business income from providing credit facilities to members and qualifies for deduction under section 80P(2)(a)(i). Such mandatory deposits are distinct from voluntary investment of surplus funds. Interest on deposits exceeding the verified statutory requirement may be assessed as income from other sources; however, only net income is taxable after deduction of directly attributable proportionate expenditure. The mandatory deposit quantum must therefore be determined before applying the deduction and tax treatment. Case-Laws Income Tax Tue, 16 Sep 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=470702