Section 80P of ITA, 1961 : Section 80P: Deduction In Respect Of Income Of Co-Operative Societies

Explanation using Example

Let's consider a hypothetical scenario where there is a cooperative society named 'GreenFarm Co-operative Society' which is engaged in the marketing of agricultural produce grown by its members. For the financial year, GreenFarm reports a gross total income that includes profits and gains from their marketing business. According to Section 80P of the Income-tax Act, 1961, GreenFarm Co-operative Society is eligible for certain deductions from its taxable income.

Under subsection (2)(a)(iii) of Section 80P, since GreenFarm is engaged in the marketing of agricultural produce grown by its members, it can claim a deduction of the entire amount of profits and gains from that activity when computing its total income for tax purposes. This ...

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