A Contemporary Recasting of Section 80P for Strengthening the Co-operative Sector : Clause 149 of the Income Tax Bill, 2025 Vs. Section 80P of the Income-tax Act, 1961

Deduction for co operative societies preserved and modernised, with targeted categories and voting control safeguards for eligibility.

Clause 149 permits deductions for specified categories of income of co operative societies-profits from credit to members, cottage industry, marketing and specified processing of members' agricultural produce, supply of agricultural inputs, collective disposal of members' labour, fishing and allied activities, interest or dividends from investments in other co operatives, and income from letting godowns or warehouses-subject to membership, voting restrictions for certain societies, exclusions for most co operative banks, and computation after specified infrastructure deductions.