We are registered with under Co-operative Society Act. and license taken under Urban Development Bank and engaged in carrying on business of banking and providing credit facilities to only members and availing a deduction u/s 80P of Income Tax Act. Since 2007-08 Section 80P was amended by the Finance Act. 2006, with effect from 01.04.2007 introducing sub-section (4) which laid down specifically that the provision of section 80P will not apply to any cooperating bank other than a Primary Agricultural Credit Society or a Primary Co-operative Agricultural and Rural Development bank Accordingly, deduction under section 80P was no more available to any Regional Rural Bank from assessment year 2007-08 onwards. The deduction under section 80P of Income tax Act are applicable to our Society or not
07 May 2013
Assuming that the licence referred to is the licence of RBI u/s 22 of BR Act,you belongs to the category of "Co-operative bank" as defined in Sec.5 r/w sec.56 of BR Act and therefore will be hit by sec.80(P)(4). Deduction u/s 80(P) is not available for a licensed co-operative Bank from 2007-08 onwards.
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