TaxTMI 
TaxTMI 
Deduction in respect of Income of Co-Operative Societies - (New) Section 149 & 150 / (Old) Section 80P
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....ltural credit society or • a primary co-operative agricultural and rural development bank. [ Section 149(4) ] "Primary agricultural credit society" has the same meaning as assigned to it in Part V of the Banking Regulation Act, 1949 (10 of 1949); "Primary co-operative agricultural and rural development bank" means a society having an area of operation confined to a taluk, the principal object of which is to provide long-term credit for agricultural and rural development activities.. Categories of Income Eligible for Deduction [ Section 149(2) ] Sub-section (2) specifies the exact incomes eligible for deduction. The deductions vary from: • 100% deduction • limited deducti....
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....vernment. (b) For Primary Societies Supplying Agricultural Produce Raised by Members This applies only to Primary societies and primary society engaged in supplying of • milk • oilseeds • cotton seed • cattle feed • fruits • vegetables These products must be raised or grown by members. Supply should be made only to • (i) a federal co-operative society, being a society, engaged in the business of supplying milk, oilseeds, cotton seed, cattle feed, fruits or vegetables; or • (ii) the Government or a local authority; or • (iii) a Government company, as defined in section 2....
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....shall be allowed from such income, to the extent of the amount which,-- • (a) has arisen from such investment as recorded in its books of account on or before the 31st January, 2026; and • (b) has been distributed by it to its members at least one month before the due date for filing the return of income under section 263(1). • The such deduction shall not apply to any tax year beginning on or after the 1st April, 2029. • "Federal co-operative" means a "federal co-operative" as defined in section 3(k) of the Multi-State Co-operative Societies Act, 2002 and notified as such by the Central Government. (e) Deduction for Income from Letting of Godowns and Warehouses....
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....s intended for agriculture for the purpose of supplying them to its members; or • The processing without the aid of power, of the agricultural produce to its members; or • The collective disposal of the labour of its members; or • Fishing or allied activities, i.e., the catching, curing, processing, preserving, storing or marketing of fish or purchase of materials and equipments in connection therewith for the purpose of supplying them to its members. However, In case of co-operative societies falling under clause (vi) & (vii) above, the deduction, is available subject to the condition that the rules and bye-laws of the society restrict the voting rights to the following classes of its members, name....
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....modities. B. Where deduction is allowed to limited extent. 1. For other incomes except referred to in I to IV above, there is a general deductions from income as under from the Gross Total Income: • Where such co-operative society is a consumers co-operative society Rs. 1,00,000. • In any other case, Rs. 50,000. Key Note: Consumer co-operative society means a society for the benefit of the consumers. 2. In case if entire income by way of interest on securities or income from house property if gross total income of co-operative society does not exceed Rs. 20,000 - 100% deduction is allowed Specific Exclusions: Section 80P is not applicable to any co-operative bank (including Regio....