Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

Deduction u/s 80p

Save Share

This query is : Resolved

ajay chaurasia (Querist)

06 May 2013 Dear sir,

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

Radhakrishnan K.V.

Radhakrishnan K.V. (Expert)

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.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now