Income tax on co-op. credit soc.

Coop. societies are liable to pay tax & file return also. The slab rate of co-op. society is

Income             Tax

upto 10000    - 10%

10000-20000- 1000+20% of income exceed over 10000

over 20000    -  3000+30% of income exceed over 20000

yes this co-op soc is liable to pay tax. co-op soc could give loan to its member.

All urban Co operative credit society and Pat-Pedhis  by virtue of provisions of [Note :Part V contains amendement in definition ] - Section 5(ccii),5(ccv) and 5(ccvi) of Banking Regulation Act, 1949  Further, Section 5A of Banking regulation Act,1949 overrides Bye laws of the co op credit society whose principal business of a primary credit society is the transaction of banking business and When its paid up capital and reserves attain the level of Rs.1 lakh, a primary credit society automatically becomes a primary cooperative bank.

Further, vide para 8 in the case of  [Salgaon Sanmitra Sahakari Pathpedhi Ltd. v. Additional Commissioner of Income-tax, Ward-17(3),Mumbai. - [12 Taxmann.com 246 (2011)] the assessee society was classified as 'cooperative bank' under section 12(1) of the Maharashtra Cooperative Society Act, 1960 as per the registration certificate issued by the Assistant Registrar, Cooperative Society, Mumbai.

Once the  urban Co operative credit society and Pat-Pedhis  are classified as Bank then they are not eligible for benefit provided under section 80P of the Income Tax Act,1961, from Assessment Year 2007-08 by virtue of Section 80P(4) read with section 2(24)(viia) both of income Tax Act, 1961.

Note : Please also refer point no. 4 of page 15 of Banking regulation Amendment Bill No. 18 of 2011 introduced in the loksabha.

whether addition made in assessment is allowed as deduction u/s 80P(2)(a)(i) in case of co operative society