80P. [ Deduction in respect of income of co-operative societies. [Inserted by Act 20 of 1967, Section 33 and Schedule III (w.e.f. 1.4.1968).]
(1)Where, in the case of an assessee being a co-operative society, the gross total income includes any income referred to in sub-section (2), there shall be deducted, in accordance with and subject to the provisions of this section, the sums specified in sub-section (2), in computing the total income of the assessee.(2)The sums referred to in sub-section (1) shall be the following, namely:-(a)in the case of a co-operative society engaged in-(i)carrying on the business of banking or providing credit facilities to its members, or(ii)a cottage industry, or](iii)[ the marketing of the agricultural produce of its members, or] [ Substituted by Act 11 of 1999, Section 8, for sub-Clause (iii) (w.r.e.f. 1.4.1968).](iv)[ the purchase of agricultural implements, seeds, livestock or other articles intended for agriculture for the purpose of supplying them to its members, or [Inserted by Act 20 of 1967, Section 33 and Schedule III (w.e.f. 1.4.1968).](v)the processing, without the aid of power, of the agricultural produce of its members,] [or] [ Inserted by Act 32 of 1971, Section 1971, Section 22 (w.e.f. 1.4.1972).](vi)[ the collective disposal of the labour of its members, or [Inserted by Act 32 of 1971, Section 1971, Section 22 (w.e.f. 1.4.1972).](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,][the whole of the amount of profits and gains of business attributable to any one or more of such activities:] [Inserted by Act 20 of 1967, Section 33 and Schedule III (w.e.f. 1.4.1968).][Provided that in the case of a co-operative society falling under sub-clause (vi), or sub-clause (vii), the rules and bye-laws of the society restrict the voting rights to the following classes of its members, namely:-(1)the individuals who contribute their labour or, as the case may be, carry on the fishing or allied activities;(2)the co-operative credit societies which provide financial assistance to the society;(3)the State Government;](b)[ in the case of a co-operative society, being a primary society engaged in supplying milk, oilseeds, fruits or vegetables raised or grown by its members to- [Substituted by Act 11 of 1983, Section 30, for Clause (b) (w.e.f. 1.4.1984).](i)a federal co-operative society, being a society engaged in the business of supplying milk, oilseeds, fruits or vegetables, as the case may be; or(ii)the Government or a local authority; or(iii)a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956), or a corporation established by or under a Central, State or Provincial Act (being a company or corporation engaged in supplying milk, oilseeds, fruits or vegetables, as the case may be, to the public), the whole of the amount of profits and gains of such business;(c)in the case of a co-operative society engaged in activities other than those specified in clause (a) or clause (b) (either independently of, or in addition to, all or any of the activities so specified), ][so much of its profits and gains attributable to such activities as does not exceed,-] [Substituted by Act 21 of 1979, Section 14, for certain words (w.e.f. 1.4.1980).](i)[ where such co-operative society is a consumers' co-operative society, ] [Substituted by Act 11 of 1983, Section 30, for Clause (b) (w.e.f. 1.4.1984).][one hundred thousand rupees] [ Substituted by Act 21 of 1998, Section 37, for certain words (w.e.f. 1.4.1999).]; and(ii)[ in any other case, ] [Inserted by Act 20 of 1967, Section 33 and Schedule III (w.e.f. 1.4.1968).][fifty thousand rupees] [Substituted by Act 21 of 1998, Section 37, for certain words (w.e.f. 1.4.1999).].[Explanation. - In this clause, "consumers co-operative society "means a society for the benefit of the consumers;] [Substituted by Act 11 of 1983, Section 30, for Clause (b) (w.e.f. 1.4.1984).](d)[ in respect of any income by way of interest or dividends derived by the co-operative society from its investments with any other co-operative society, the whole of such income; [Inserted by Act 20 of 1967, Section 33 and Schedule III (w.e.f. 1.4.1968).](e)in respect of any income derived by the co-operative society from the letting of godowns or warehouses for storage, processing or facilitating the marketing of commodities, the whole of such income;(f)in the case of a co-operative society, not being a housing society or an urban consumers' society or a society carrying on transport business or a society engaged in the performance of any manufacturing operations with the aid of power, where the gross total income does not exceed twenty thousand rupees, the amount of any income by way of interest on securities ][* * *] [ Certain words omitted by Act 26 of 1988, Section 27 (w.e.f. 1.4.1999).] [or any income from house property chargeable under section 22. [Inserted by Act 20 of 1967, Section 33 and Schedule III (w.e.f. 1.4.1968).]Explanation. - For the purposes of this section an "urban consumers' co-operative society" means a society for the benefit of the consumers within the limits of a municipal corporation, municipality, municipal committee, notified area committee, town area or cantonment.(3)In a case where the assessee is entitled also to the deduction under ] [ Inserted by Act 32 of 1971, Section 1971, Section 22 (w.e.f. 1.4.1972).] [[* * *] [Substituted by Act 26 of 1974, Section 11, for " section 80-H or section 80-J" (w.e.f. 1.4.1974).][section 80-HH ] [Substituted by Act 26 of 1974, Section 11, for " section 80-H or section 80-J" (w.e.f. 1.4.1974).][ Substituted by Act 32 of 1985, Section 36, for Explanation (w.e.f. 1.4.1986).]or [section 80-HHA] [ Inserted by Act 29 of 1977, Section 23 (w.e.f. 1.4.1978).] [or section 80-HHB] [ Inserted by Act 14 of 1982, Section 32 (w.e.f. 1.4.1983).][or section 80-HHC,] [ Inserted by Act 11 of 1983, Section 39 (w.e.f. 1.4.1983).][or section 80-HHD] [ Inserted by Act 3 of 1989, Section 57 (w.e.f. 1.4.1989).] [or section 80-I] [ Inserted by Act 44 of 1980, Section 35 (w.e.f. 1.4.1981).] [or section 80-IA] [ Inserted by Act 38 of 1993, Section 18 (w.r.e.f. 1.4.1991).][section 80-J,] [Section 80-J omitted by Act 33 of 1996, Section 29 (w.r.e.f. 1.4.1989).][or section 80-JJ] [ Inserted by Act 13 of 1989, Section 25 (w.e.f. 1.4.1990).][, the deduction under sub-section (1) of this section, in relation to the sums specified in clause (a) or clause (b) or clause (c) of sub-section (2), shall be allowed with reference to the income, if any, as referred to in those clauses included in the gross total income as reduced by the deductions under ] [Inserted by Act 20 of 1967, Section 33 and Schedule III (w.e.f. 1.4.1968).][[* * *] [Substituted by Act 26 of 1974, Section 11, for " section 80-H and section 80-J" (w.e.f. 1.4.1974).] [section 80-HH] [ Inserted by Act 26 of 1974, Section 11 (w.e.f. 1.4.1974).], [section 80-HHA,] [ Inserted by Act 29 of 1977, Section 23 (w.e.f. 1.4.1978).] [section 80-HHB,] [ Inserted by Act 14 of 1982, Section 32 (w.e.f. 1.4.1983).] [section 80-HHC,] [ Inserted by Act 11 of 1983, Section 39 (w.e.f. 1.4.1983).] [section 80-HHD,] [ Inserted by Act 3 of 1989, Section 57 (w.e.f. 1.4.1989).] [section 80-I,] [ Inserted by Act 16 of 1981, Section 25 (w.e.f. 1.4.1981).] [section 80-IA,] [ Inserted by Act 38 of 1993, Section 18 (w.r.e.f. 1.4.1991).] [[section 80-J] [ Substituted by Act 32 of 1985, Section 36, for " or section JJ" (w.e.f. 1.4.1990).][and 80-JJ.] [ Substituted by Act 32 of 1985, Section 36, for " or section JJ" (w.e.f. 1.4.1990).](4)[ The provisions of this section shall not apply in relation to any co-operative bank other than a primary agricultural credit society or a primary co-operative agricultural and rural development bank.Explanation. - For the purposes of this sub-section,-(a)"co-operative bank" and "primary agricultural credit society" shall have the meanings respectively assigned to them in Part V of the Banking Regulation Act, 1949 (10 of 1949);(b)"primary co-operative agricultural and rural development bank" means a society having its area of operation confined to a taluk and the principal object of which is to provide for long-term credit for agricultural and rural development activities.]
