Levy of income tax on interest income of co op sy u/s 80p

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 December 2016 Whether Interest earned on various deposits made by a co operative Society in the canara bank nationalised bank and Regional Rural Bank(Karnataka Vikas Grameena Bank ) in Savings Bank Deposis are taxable under section 80P of the Income Tax Act,1961 or exempt under section 80P of the said Act
Ours is a co operative Society Registered under co operative Dept. Govt.of Karnataka 1959
If Interest income is taxable then under which head and section the interest income is taxable
Interest earned on the following Banks in different type of Deposits
1-CANARA BANK --Interest on Fixed Deposit earned during f yr.2013-14-- A- -RS.3,59,676-00
2-KARNATAKA VIKAS GRAMEENA BANK-It is a Regional Rural Bank B- RS.14,80,901.00
Interest on K V G Bank Savings Bank Deposit earned on 1) - 31.07.2013--RS.8,49,879.00
earned on 2) 31.01.2014 Rs 6,31,022.00
Total interest earned on FDS Canara Bank & on S.B KV G Bank--- A+B= C ------------ C Rs.18,40,577.00
Please throw your expert views on these problems to us sir,

CA Suresh Jain

CA Suresh Jain (Expert)
Follow

11 December 2016 Interest from Co-operative societies only is deductible. The Interest above from KVGB and other banks not eligible u/s. 80P. The interest income to be shown as "Income from other Sources"

Message likes : 1 times

Radhakrishnan K.V.

Radhakrishnan K.V. (Expert)
Follow

30 January 2017 Interest earned from investments of surplus fund is to be considered as "income from business" and exempted u/s 80P(2) in the case of co-operative societies carrying on Banking business. In the case of other societies this income will be treated as income from other sources and taxable u/s 56 of Income Tax act 1961.

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