https://www.taxtmi.com/caselaws?id=472160 Interest earned by a co-operative society on deposits mandated under the Karnataka Co-operative Societies Act for reserve-fund purposes has a direct nexus with its credit-facility business and qualifies for deduction under Section 80P(2)(a)(i), subject to verification of the compulsory deposit quantum. Interest from deposits exceeding statutory requirements may be taxable as Income From Other Sources. That interest must be computed on a net basis, allowing proportionate expenditure directly attributable to earning it. Assessment should distinguish compulsory deposits from voluntary or excess investments and apply the corresponding income treatment. en-us Mon, 21 Apr 2025 00:00:00 +0530 Thu, 01 Oct 2026 07:45:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=472160 Interest earned by a co-operative society on deposits mandated under the Karnataka Co-operative Societies Act for reserve-fund purposes has a direct nexus with its credit-facility business and qualifies for deduction under Section 80P(2)(a)(i), subject to verification of the compulsory deposit quantum. Interest from deposits exceeding statutory requirements may be taxable as Income From Other Sources. That interest must be computed on a net basis, allowing proportionate expenditure directly attributable to earning it. Assessment should distinguish compulsory deposits from voluntary or excess investments and apply the corresponding income treatment. Case-Laws Income Tax Mon, 21 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=472160