Regarding employee credit society

Hi Sri Snigdha,

Here are the answers to your queries regarding the employee credit co-operative society for FY 22-23:

1) Is tax audit applicable?

• Tax audit under Section 44AB is applicable if the turnover exceeds Rs. 1 crore (for FY 22-23).

• Since turnover is Rs. 1.8 crore, tax audit is applicable to the society.

2) Can Section 80P benefit be availed even after filing the return after due date?

• Yes, Section 80P deduction can be claimed even if the return is filed late, provided the return is filed within the extended time limit under Section 139(1) or before the assessment is completed.

• However, if the return is filed beyond the time limits (e.g., belated or revised return deadlines expired), the deduction might be disallowed.

• So, try to file the return ASAP to avoid any issues.

3) Should interest from other bank deposits be excluded for calculating net profit for Section 80P?

• Section 80P specifically allows deduction on income of co-operative societies from their members (like interest from loans to members, services to members).

• Interest from other bank deposits (non-members related) is generally considered as 'other income' and should be excluded from income eligible for 80P deduction.

• So, exclude the interest from bank deposits and miscellaneous income unrelated to members when calculating the income eligible for 80P.