Deduction under section 80 P - My Commerce Info

Friday, June 17, 2016

Deduction under section 80 P

This deduction exists only for co-operative society. 100% deduction is allowed. 1.      (A)In the case of co-operative society engag... thumbnail 1 summary


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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