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Urgent-deduction u/s 80p

737 views 6 replies

Swati Agarwala

Chartered Accountant

140 Points Posted on 30 September 2014

One of my client is a Cooperative Society registered under State Cooperative Socities Act.The society is for the purpose of purchase and sale of fertilizers to local farmers and small retailers.So whether it can claim deduction of Rs.50000 under section 80P of the Income Tax Act.

The society is eligible for tax audit in this year as crossed 1crore turnover.So I also want to know that which forms are applicable to tax audit (Form 3CB and 3CD or 3CA and 3CD).The society is only one year old so no auditor has been appointed by the Registrar yet.Please reply

Replies (6)

Kishor Bhat

CA final CS executive (from Bangalore)

1881 Points Posted on 30 September 2014

It may falls under the categories of purchase and sale of agriculural implements to members(if the farmers are the members of the society). On this basis i can say Yes..so whole income from sale to members can claim deduction u/s 80P(2)(a). But sale of small retailers does nt fall in the above categories, if they are non-members. Ofcrse, they are non members. So it may fall under the head agency business.. we can take it as income from other activities..here we can claim general deduction upto Rs 50000 u/s 80P(2)(c).

Kishor Bhat

CA final CS executive (from Bangalore)

1881 Points Posted on 30 September 2014

Regarding tax audit, give me a day..i tell.

Swati Agarwala

Chartered Accountant

140 Points Posted on 30 September 2014

Hi Kishor, The sale is completely to non members.Still will it be eligible for deduction of rs.50000 under section 80p.and the forms applicable is 3CA or 3CB.

Kishor Bhat

CA final CS executive (from Bangalore)

1881 Points Posted on 30 September 2014

Ya, u can claim general deduction of rs 50000 even if the transaction with non members. And the society nt yet audited one so FORM 3CB.

Swati Agarwala

Chartered Accountant

140 Points Posted on 30 September 2014

Thanks Kishor. You are sure na.

Kishor Bhat

CA final CS executive (from Bangalore)

1881 Points Posted on 30 September 2014

Ya sure yr. After seeing my ca final book only am confirming this. For assessee whose buks are audited then form 3CA. In ur case, not audited so 3CB. U can cross check even in google search:)