Regarding co-operative credit society

Yes available, but only If the Co-operative Society you are mentioning is of the nature referred below, deduction u/s 80P(2)(a) is available in respect of the whole of the amount of profits and gains of business attributable to any one or more of such activities.-

(i) carrying on the business of banking or providing credit facilities to its members, or

(ii) a cottage industry, or

(iii) the marketing of agricultural produce grown by its members, or

(iv) the purchase of agricultural implements, seeds, livestock or other articles intended for agriculture for the purpose of supplying them to its members, or

(v) the processing, without the aid of power, of the agricultural produce of its members, or

(vi) the collective disposal of the labour of its members, or

(vii) fishing or allied activities, that is to say, the catching, curing, processing, preserving, storing or marketing of fish or the purchase of materials and equipment in connection therewith for the purpose of supplying them to its members,

According to you, the surplus  funds are invested the deposits and you earn income. We can make a strong case for treating the said interest income as 'Business income' - as the surplus funds of the business is only invested. Close nexus with business funds and also occassional withdrawals for business purposes would strengthen your case.

If the Co-operative society in question is not carrying on the activities referred above, You may seek deduction u/s 80P(2)(c) or 80P(2)(f)- subject to certain conditions.

Hope the above clarifies.

Regards,

CA Hariprasad Nayak

+91 9481 227 467