This deduction exists only
for co-operative society. 100% deduction is allowed.
1. (A)In the case of co-operative society engaged in the
following business the whole of the amount of profit and gain of business
attributable to any one or more such activities shall be deducted from the
gross total income.
1) Carrying the business of Banking or proving Banking
facilities to its member.
2) A cottage industry.
3) The marketing of Agriculture produce grown by its
member (Egg is also included).
4) The purchase of Agriculture implements, seeds, live
stock or other articles intended for Agriculture for the purpose of supplying
them to its member.
5) The processing without the aid of power of the
Agriculture produce of its members.
6) The collective disposal of the labour of its member.
7) Fishing or aligned activities.
(B)
Sub clause VI or
VII
1) The individuals who contribute their labour or
carrying on the fishing activities
2) The co-operative credit societies who provide the
financial assistance to the society.
3) State Government
2. Activities other than co-operative society engaged in
the following business the whole of the amount of profit and gain of business
attributable to any one or more such activities shall be deducted from the
gross total income.
1) In the case of a co-operative society
engaged in activities other than activities I
2) In case of consumer credit society upto Rs.
1,00,000 from gross total income.
3. The whole of the income by the way of interest or
dividend derived by a co-operative society from its investment with any other
co-operative society shall be deducted from the gross total income (100%
allowed).
4. The whole of the income derived by society from
letting of Godowns and warehouses for storage, processing or marketing of
commodities shall be deducted from gross total income (100% allowed).
5. In the case of co-operative society which is not a
Housing society or an Urban consumer society
or a society carrying on transport business or society engage in the
performance of any manufacturing operation with the aid of power, when gross
total income does not exceed Rs. 20,000 the amount of any income by the way of
interest on securities or any income from house property shall be deducted from
gross total income.
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