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Taxation of Cooperative Society

Jaisika Kukreja (216 Points)

25 November 2018

Income from house property allowed deduction from GTI or not ??

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10 Replies

Hitesh (Student) (3549 Points)
Replied 25 November 2018

Yes it is allowed

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Jaisika Kukreja (216 Points)
Replied 25 November 2018

Is there any limit ??

Hitesh (Student) (3549 Points)
Replied 25 November 2018

There is a limit of 50000 but not applicable to House property

Jaisika Kukreja (216 Points)
Replied 25 November 2018

m not satisfied with ur answers.

Hitesh (Student) (3549 Points)
Replied 25 November 2018

m not satisfied with your query

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Nitesh bind (Student CA Final ) (12692 Points)
Replied 26 November 2018

Please guys don't make fun of any Querist. They ask query because they Don't know it and they ask it to you as you guys are expected to answer them (even sometime query is not clear).

Hope you understand.

Thanks. Be Helpful to One Another.!

5 Like

Jaisika Kukreja (216 Points)
Replied 26 November 2018

@ Nitesh ..reply ??

Nitesh bind (Student CA Final ) (12692 Points)
Replied 26 November 2018

See, Jaisika under Section 80P there are mainly 2 categories of Deduction;

1. When Income of Co-operative Society to is deductible without any limit i.e 100%. There are broadly 4 sub category under this-

(a): Profit arising from CERTAIN ACTIVITIES carried out by Cooperative Society
e.g. -Business of banking/or credit facility for it's member,
- Marketing of agriculture produce grown by it's own Member
- Disposal of labour of it's own Member. etc

(b) Profit of CERTAIN SOCIETIES; (primary Cooperative Society)

e.g which is engaged in supplying milk, oilseed, fruits and veggies etc which were GROWN by it's own Member.

(c) Income from investment with other cooperative societies.

(d) income from letting of GODOWN OR WAREHOUSE for storage, processing etc of Commodities (generally as above commodities)

Note; Here one thing must be kept in mind that 100% deduction would be allowed only if it is letting of GODOWN OR WAREHOUSE.

2. General Deduction-

This Deduction is for INCOME OTHER THAN THE ABOVE MENTIONED INCOME (i.e. Other than Point 1 income). Deduction would be allowed as follows;

- where such Co-operative society is a consumers' cooperative society then = RS. 1,00,000/-

- In all other cases = RS. 50,000.

Now coming to your query;

The income from House Property is deductible FULLY (i.e 100%) ONLY IF It is from Letting of GODOWN OR WAREHOUSE.

If any other type of House property income then it would be covered by general Deduction of Rs. 1,00,000/50,000.

3 Like

Rajeev Sahu (Finance Analyst) (22 Points)
Replied 27 November 2018

Perfect Answer Nitesh Ji. Very properly explained. Instead of Making fun of anyone's trouble you really tried your best to understand that and Explained her query SUPER AMAZINGLY. Great Job..!!