Ravishanker (ITP) 19 October 2019
a) Kindly advise whether fixed deposit interest earned by registered co-operative societies from co-operative banks are exempted from Income Tax? Will the fixed deposit interest from other banks are exempted from Income Tax, for registered co-operative societies? What if interest earned on savings bank account?
b) Assesse has paid commission to a foreigner for the works performed out of India, without deducting TDS. Will the expenses be disallowed? The foreigner belongs to a country which has a DTTA with India. What are the documents to be produced to the AO, if he disallows the expenses.
Thanks in advance.
Kapadia Pravin 19 October 2019
Interest received by Co-operative society from Co-operative bank is Exempt under section 80P (both SB and FDR interest)
However interest received by Co-operative society from other banks is Taxable.