{"id":7734,"date":"2020-05-02T19:42:14","date_gmt":"2020-05-02T14:12:14","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=7734"},"modified":"2024-04-23T17:51:21","modified_gmt":"2024-04-23T12:21:21","slug":"taxability-for-co-operative-society-a-complete-outlook-on-annual-returns","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/taxability-for-co-operative-society-a-complete-outlook-on-annual-returns\/","title":{"rendered":"Taxability for Co-operative Societies: A Complete Outlook on Annual Returns"},"content":{"rendered":"\n<p class=\"has-drop-cap\">An annual return is a legal document that\ncontains details of a Society\u2019s shares, members of the Society, changes in\nmemberships, all the governance resolutions etc. Usually, people assumed that\nthe Income of small societies is not taxable; therefore, there is no\nrequirement to file Income Tax return. Well, this assumption is no more\ncorrect, since amendment was made in Section 80AC of Income Tax Act 1961.<\/p>\n\n\n\n<p>Though, Budget 2018 stretched the scope of <strong><em>section 80AC<\/em><\/strong> to deliver the benefit of deduction under the complete class of deduction. The extension was done under the heading \u201c<strong>C- Deduction in respect of certain incomes<\/strong>&#8221; in &#8216;Chapter VIA,&#8217; which shall not be permitted if a return of Income is not duly filed by the due approved date. In this blog, we will look at the information submitted by the co-operative Society in its annual return in detail.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/taxability-for-co-operative-society-a-complete-outlook-on-annual-returns\/#What_are_the_sections_that_stand_in_for_80AC_of_the_Income-tax_Act\" >What are the sections that stand in for 80AC of the Income-tax Act?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/taxability-for-co-operative-society-a-complete-outlook-on-annual-returns\/#What_about_the_Banking_Operations_of_Such_Societies_%E2%80%93_effecting_Deductions\" >What about the Banking Operations\nof Such Societies &#8211; effecting Deductions?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/taxability-for-co-operative-society-a-complete-outlook-on-annual-returns\/#What_is_the_Performa_of_Annual_Returns_needs_to_be_submitted_by_all_Societies\" >What is the\nPerforma of Annual Returns needs to be submitted by all Societies?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/taxability-for-co-operative-society-a-complete-outlook-on-annual-returns\/#What_is_the_Income_which_is_usually_earned_by_a_Co-operative_Society_by_Contribution_from_Members\" >What is the\nIncome which is usually earned by a Co-operative Society by Contribution from\nMembers?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/taxability-for-co-operative-society-a-complete-outlook-on-annual-returns\/#What_are_the_Interest_Charged_on_member_Outstanding_Earned_Investments_and_Dividend\" >What are the\nInterest Charged on member Outstanding, Earned Investments, and Dividend?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/taxability-for-co-operative-society-a-complete-outlook-on-annual-returns\/#What_is_the_Rental_Interest_Charged_from_Advertisement_Hoardings_Cable_Towers_and_the_use_of_open_spaces\" >What is the\nRental Interest Charged from Advertisement Hoardings, Cable Towers, and the use\nof open spaces?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/taxability-for-co-operative-society-a-complete-outlook-on-annual-returns\/#What_is_the_Non-Occupancy_parking_and_Charge_needs_to_be_fulfilled_by_Co-operative_Societies\" >What is\nthe Non-Occupancy parking, and Charge needs to be fulfilled by Co-operative\nSocieties?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/taxability-for-co-operative-society-a-complete-outlook-on-annual-returns\/#What_are_recent_Rulings_reflected_upon_deduction_eligible_to_Co-operative_Societies\" >What are recent Rulings reflected\nupon deduction eligible to Co-operative Societies?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/corpbiz.io\/learning\/taxability-for-co-operative-society-a-complete-outlook-on-annual-returns\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_sections_that_stand_in_for_80AC_of_the_Income-tax_Act\"><\/span>What are the sections that stand in for 80AC of the Income-tax Act?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li>According to the existing provisions of Section 80AC of the Income Tax Act, no deduction on charges would be permissible \u201cunder sections 80IA, section 80IAB, section 80IB, section 80IC, section 80ID, or section 80IE\u201d, only if, no annual return of Income gets furnished. <\/li>\n\n\n\n<li>The Income received by the \u2018assessee\u2019 has to get furnished on or before the due date prescribed under Section 139(1). Any other taxpayers who are claiming such deductions do not come under the purview of Section 80AC of the Act.<\/li>\n\n\n\n<li>By the given Section, deduction under section 80P is allowed only if&nbsp;<strong>Income Tax returns have been duly filed on or before the due date<\/strong>&nbsp;as prescribed under section 139(1) of Income Tax Act of 1961. Deduction under section 80P 2(d) <strong>associated with Interest<\/strong> received from the Co-operative Society. Deduction u\/s 80P 2(C) permits \u2018<strong>Standard Deduction\u2019<\/strong> up to Rs 50,000\/- only if Co-operative housing society taking <strong>Business Income<\/strong> such as- Income from Poster \/ Advertising Revenue.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_about_the_Banking_Operations_of_Such_Societies_%E2%80%93_effecting_Deductions\"><\/span>What about the Banking Operations\nof Such Societies &#8211; effecting Deductions?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li>Generally, every Society has <strong>Bank Account in Co-operative Bank<\/strong> or any State-owned or Nationalised Bank. Correspondingly, every Society has <strong>Fixed Deposit<\/strong> either in the Co-operative Bank or any of the Nationalised Bank.<\/li>\n\n\n\n<li>In terms of the above said, Saving Bank Interest or Fixed deposit Interest expected from&nbsp;<strong>Nationalised Bank<\/strong>&nbsp;is open to charges &#8211; taxable under the title of  \u201cIncome from Other Sources.\u201d It also signifies that it needs to file&nbsp;<strong>Income Tax return as per prescribed arrangements.<\/strong><\/li>\n\n\n\n<li>Moreover, the \u2018<strong>Saving Bank Interest\u2019<\/strong> or \u2018<strong>Fixed deposit Interest\u2019<\/strong> recognized from&nbsp;<strong>Co-operative Bank<\/strong>&nbsp;can be deductible under section 80P 2(d) only if the return gets filed on or before 31st Oct for the Financial Year or Assessment Year as per adjustment during amendment made in section 80AC. The Saving Bank Interest or Fixed Deposit Interest received from Co-operative Bank is taxable at the following rate:-<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" width=\"604\" height=\"366\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-5.png\" alt=\"file Income Tax return as per prescribed arrangements\" class=\"wp-image-7736\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-5.png 604w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-5-300x182.png 300w\" sizes=\"(max-width: 604px) 100vw, 604px\" \/><\/figure><\/div>\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Performa_of_Annual_Returns_needs_to_be_submitted_by_all_Societies\"><\/span>What is the\nPerforma of Annual Returns needs to be submitted by all Societies?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It has been defined that in every year, within thirty days of holding of annual \u2018<strong>general body\u2019 meeting<\/strong>, the board need to file returns. It should address all the concerns relating to its constitution, technical and similar matters to the Registrar as prescribed. By chance, if the returns not filed, it will consider being an <strong>offense <\/strong>under the Act. Moreover, the persons accountable for such duties shall be penalized following the provisions prescribed.<\/p>\n\n\n\n<p><strong>The Details required under prescribed Performa mentioned below:-<\/strong><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" width=\"681\" height=\"467\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-6.png\" alt=\"Performa of Annual Returns needs\" class=\"wp-image-7739\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-6.png 681w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-6-300x206.png 300w\" sizes=\"(max-width: 681px) 100vw, 681px\" \/><\/figure><\/div>\n\n\n<p><strong>Complete Society Details: &#8211;<\/strong><\/p>\n\n\n\n<ul>\n<li>Details of the Financial Year&nbsp;<\/li>\n\n\n\n<li>Credentials relating Registration No. of the Society&nbsp;<\/li>\n\n\n\n<li>Required Zone in which functioning&nbsp;<\/li>\n\n\n\n<li>Details <\/li>\n<\/ul>\n\n\n\n<ol>\n<li>Name of Society.&nbsp;<\/li>\n\n\n\n<li>Registered Address&nbsp;<\/li>\n\n\n\n<li>Complete Working Address \u2013 PIN<\/li>\n\n\n\n<li>Communicative Phone No \/Email&nbsp;<\/li>\n\n\n\n<li>Declare Total No. of Members of the Society<\/li>\n\n\n\n<li>Disclose Share Capital<\/li>\n\n\n\n<li>Disclose Deposits (Rs. In Lakhs)<\/li>\n<\/ol>\n\n\n\n<p><strong>Complete Election Detail: &#8211;&nbsp;<\/strong><\/p>\n\n\n\n<ul>\n<li>Date of Last Election&nbsp;<\/li>\n\n\n\n<li>Outstanding Date of next Election<\/li>\n\n\n\n<li>Particulars of Elected Members<\/li>\n\n\n\n<li>Date of last Annual General Meeting<\/li>\n\n\n\n<li>Time of previous Special General Body Meetings<\/li>\n\n\n\n<li>If Annual General Body Meeting held by 31st Oct of 20-(Yes or No)<\/li>\n\n\n\n<li>If no, whether delayed response given to the RCS in this regard, give details&nbsp;<\/li>\n<\/ul>\n\n\n\n<p><strong>Complete Audit Details: &#8211;<\/strong><\/p>\n\n\n\n<ul>\n<li>Disclose year up to which Audit has been held,<\/li>\n<\/ul>\n\n\n\n<p><strong>(a) If Auditor appointed for the current Financial Year? Give all details<\/strong><\/p>\n\n\n\n<p><strong>If Yes,&nbsp;<\/strong><\/p>\n\n\n\n<ul>\n<li>Declare Name\nof Auditor&nbsp;<\/li>\n\n\n\n<li>Disclose\nPanel No of Auditor&nbsp; &nbsp;<\/li>\n\n\n\n<li>State the\nDate and Form No (issued by Registrar, Cooperative Societies office) through\nwhich appointed&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;\n&nbsp;&nbsp;<\/li>\n\n\n\n<li>Disclose\nAuditor\u2019s fees (in Rs.)&nbsp;<\/li>\n\n\n\n<li>Display the\ndate of submission of Audit Report to the Registrar, Cooperative Societies\nOffice<\/li>\n\n\n\n<li>If\nobjections have settled (YES\/No)&nbsp;&nbsp;<\/li>\n\n\n\n<li>If accounts\nfor this year approved by AGM (Yes\/No)<\/li>\n\n\n\n<li>If Yes: &#8211;\nDate of AGM in which statements got adopted&nbsp; &nbsp; &nbsp; &nbsp;&nbsp;<\/li>\n\n\n\n<li>If No: -Give\nreasons<\/li>\n<\/ul>\n\n\n\n<p><strong>If No: &#8211;&nbsp;<\/strong><\/p>\n\n\n\n<ul>\n<li>Give Reasons<\/li>\n<\/ul>\n\n\n\n<p><strong>(B)<\/strong>&nbsp;<strong>If accounts not audited for\nlast Financial Year <\/strong><\/p>\n\n\n\n<p><strong>Details of Inspection\/Enquiries&nbsp;<\/strong><\/p>\n\n\n\n<ul>\n<li>Is there any Query\/inspection pendent (Yes\/NO)<\/li>\n\n\n\n<li>Examination or Enquiries (Inspection under section 61 &amp; Enquiry under section 62)&nbsp;<\/li>\n\n\n\n<li>Disclose the Name of Inspecting\/Enquiry Officer,<\/li>\n\n\n\n<li>Give complete Address and Tel. No. of Enquiry Officer,<\/li>\n\n\n\n<li>Details related to Date of Appointment&nbsp;<\/li>\n\n\n\n<li>Details related Target date of submission of report&nbsp;<\/li>\n\n\n\n<li>Whether report submitted (if yes) date of submission:<\/li>\n\n\n\n<li>(If no) state Reason for delay<\/li>\n<\/ul>\n\n\n\n<p><strong>Give complete details of Group Housing &amp; House Building Society: &#8211;<\/strong><\/p>\n\n\n\n<ul>\n<li>If any waiting list (only for HB Society)<\/li>\n\n\n\n<li>Share the status date of waiting list members<\/li>\n\n\n\n<li>Disclose the total No. of waiting list members (only for HB Society)<\/li>\n\n\n\n<li>Updated details and date list of members submitted as per rule<\/li>\n\n\n\n<li>State the year up to which updated list of members sent to Registrar, Cooperative Societies Office<\/li>\n\n\n\n<li>State the list of date when sent<\/li>\n<\/ul>\n\n\n\n<p><strong>If all the resignations, exclusions, and enrolments up to that year<\/strong><\/p>\n\n\n\n<ul>\n<li>Approved by Registrar, Cooperative Societies Office (Yes\/No)<\/li>\n\n\n\n<li>List the No. of members cleared for draw,&nbsp;<\/li>\n\n\n\n<li>List the No. of members awaiting clearance&nbsp;<\/li>\n\n\n\n<li>List the Vacancy position&nbsp;<\/li>\n\n\n\n<li>Freeze Strength (Initial)&nbsp;<\/li>\n\n\n\n<li>List the Current Strength, if FAR increased by DDA&nbsp;<\/li>\n\n\n\n<li>Details on Land Allotments (Yes\/No)&nbsp;<\/li>\n\n\n\n<li>Date of allotment of Land&nbsp;<\/li>\n\n\n\n<li>Time of obtaining the Architects Certificate&nbsp;<\/li>\n<\/ul>\n\n\n\n<div class=\"shadow1\">Membership Details &#8211; Note: &#8211; if mandatory, attach additional paper for membership information as per above Performa stated in brief;<\/div>\n\n\n\n<p><strong>Finance Details of T\/C Society&nbsp;<\/strong><\/p>\n\n\n\n<ul>\n<li>Disclose Maximum Credit Limit<\/li>\n\n\n\n<li>Disclose Total Advance (in Rs.)<\/li>\n\n\n\n<li>Disclose Total Recovery (in Rs.)<\/li>\n\n\n\n<li>Disclose Outstanding Recovery<\/li>\n<\/ul>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/tax-residency-certificate-and-how-to-get\/\">An overview on Tax Residency Certificate &amp; Double Taxation Avoidance Agreement: How To Get It?<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Income_which_is_usually_earned_by_a_Co-operative_Society_by_Contribution_from_Members\"><\/span>What is the\nIncome which is usually earned by a Co-operative Society by Contribution from\nMembers?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li><strong>Contributions from Members<\/strong> are the most commonly attributed      accounts in profit &amp; loss account of any Co-Operative Society\u2019. They      got recognized under different heads, specifically, Maintenance cost      Municipal Levies, Electricity Concerns, Lift Maintenances Cost, Water Cost etc.<\/li>\n\n\n\n<li>It may get highlighted that the Society acts as an agent who gathers these charges on behalf of members &amp; spends the same to meet the numerous joint expenses of the Society. Whatever <strong>surplus generated<\/strong> due to such types of Income is not taxable as it is exempt grounded on the &#8216;<strong>Concept of Mutuality.\u2019<\/strong>&nbsp;<\/li>\n\n\n\n<li>The elementary principle of <strong>Mutuality is a common association<\/strong> that rises when persons forming a group; associate cooperatively for an ordinary object. They contribute money for attaining that object and divide the surplus between them.&nbsp;<\/li>\n\n\n\n<li>The fundamental requirement in the case of mutual association is that \u201c<strong>All the Fund providers to the common fund must be permitted to participate in the surplus<\/strong>.&#8221; Moreover, all the competitors to the surplus should be contributors to the <strong>mutual line of work<\/strong>. In short and crisp, there should be complete distinctiveness between the \u2018contributors\u2019 and the \u2018participators.\u2019<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Interest_Charged_on_member_Outstanding_Earned_Investments_and_Dividend\"><\/span>What are the\nInterest Charged on member Outstanding, Earned Investments, and Dividend?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li>The Interest amount charged by the Society on unsettled dues of members forms a part of involvement from the members. It also qualifies the <strong>test for the \u2018concept of mutuality<\/strong>.\u2019 It is because the contributors &amp; participators are identical persons. Accordingly,\u2019 this is also getting <strong>exempt from the principle<\/strong> of Mutuality.<\/li>\n\n\n\n<li><strong>Interest income received<\/strong> can be classified into Interest earned from \u2018<strong>investments\u2019 <\/strong>made in Co-operative Banks &amp; from extra Investments. Moreover, Interest received from any investment made in Co-operative Banks is <strong>eligible for 100% deduction<\/strong> under section 80P (d) of the Act. Nevertheless, further interest income on investments is entirely chargeable.<\/li>\n\n\n\n<li>The dividend income gained from <strong>Indian Companies<\/strong> is completely exempt u\/s 10 (34). Moreover, dividend received from Co-operative Banks succeeds to get exemption under <strong>80P (d)<\/strong> is therefore <strong>100% deductible.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Rental_Interest_Charged_from_Advertisement_Hoardings_Cable_Towers_and_the_use_of_open_spaces\"><\/span>What is the\nRental Interest Charged from Advertisement Hoardings, Cable Towers, and the use\nof open spaces?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li>The <strong>Advertisement Hoardings<\/strong> are fully taxable under the space of Business Income or Income arrived from other bases. Nevertheless, the expenses which can be openly attributable to receiving of this Income can get requested against this Income on a proportional basis. <\/li>\n\n\n\n<li>In the cases of Rental from mobile &amp; Cable Towers, it is taxable under      the space of \u2018<strong>Income from House Property<\/strong>.\u2019 Likewise, it is eligible for average deduction under <strong>section 24 (a) @ 30 % <\/strong>of the whole Rent. If in case, the Society has loaned out capital to construct said structure or Society in which the tower has instituted, then a <strong>proportional deduction<\/strong> can be demanded for Interest paid on borrowed assets.<\/li>\n\n\n\n<li>Point to be noted; if the <strong>Rentals received<\/strong> for the use of open space or terrace, it should gain from Members or Non-members of the Society. If it gets acknowledged from Members, then it can be justifiable not to be taxable on the principle of <strong>\u201cMutuality<\/strong>.\u201d If it gets accepted from Non-members or outcasts, then it shall be utterly taxable under the      parameters of <strong>Income from House Property<\/strong>. It will qualify for deductions, as stated earlier.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Non-Occupancy_parking_and_Charge_needs_to_be_fulfilled_by_Co-operative_Societies\"><\/span><strong>What is\nthe Non-Occupancy parking, and Charge needs to be fulfilled by Co-operative\nSocieties?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li>The <strong>non \u2013 occupancy charges<\/strong> are being composed from members in their Regular Bills, though the income tax departments interpretation says that this amount gets acknowledged from the members. These members should be who has not been <strong>staying in the locations<\/strong> of the Co-operative Societies. Consequently, though he is a contributor to the total amount, he is not relishing the amenities of the Co-operative Society. Therefore it also can be said that it is not a participator. Bearing in mind about the same, the <strong>\u2018mutuality concept\u2019<\/strong> is not      fulfilled &amp; this Income is <strong>taxable as per provision.<\/strong><\/li>\n\n\n\n<li>Again, in this case of&nbsp;<strong>parking<\/strong>&nbsp;charges, the point to be seen is whether the receiving\u2019s are from members or Non \u2013 members of the Society. In the instance of collections from members, they get protected by the general concept of \u2018Mutuality.\u2019 Nevertheless, in the case of Societies surrounded by shopping complexes, the parking charges demanded from outsiders would be chargeable.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_recent_Rulings_reflected_upon_deduction_eligible_to_Co-operative_Societies\"><\/span>What are recent Rulings reflected\nupon deduction eligible to Co-operative Societies?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li>In  the case of<strong>&nbsp;\u201cKuthuparamba Range Kallu chethu Vyavasaya Thozhilali Sahakarana Sangham Ltd Vs. CIT (Kerala High Court)\u201d&nbsp;it<\/strong> says that Toddy Tapping-&nbsp;<strong>Collection of juice<\/strong>&nbsp;is eligible for deduction U\/s. 80P. The&nbsp;<strong>trees belonging to the members<\/strong>&nbsp;of the      Society will be agricultural products developed by them. The selling of      such produce grown by its members would be the marketing of an agrarian food under a regulatory command.<\/li>\n\n\n\n<li>In the case of \u201c<strong>ITO Vs Shree Keshorai Patan Sahakari Sugar Mill (ITAT Jaipur),\u201d<\/strong>&nbsp;it says that the deduction U\/s. 80P(2)(d) is eligible to the Co-operative Society on Interest from co-operative banks. It can get accomplished despite being not providing&nbsp;<strong>credit services to the members<\/strong>&nbsp;of the co-operative Society.<\/li>\n\n\n\n<li>In the case of \u201c<strong>ITO Vs. M\/s. Perinthalmanna Service Co-operative Bank Limited (ITAT Cochin)\u201d,<\/strong>&nbsp;Sec 80P Deduction is available to Co-Bank for Interest on Investments with Sub-Treasuries during its Business of&nbsp;<strong>primary agricultural credit society.<\/strong><\/li>\n\n\n\n<li>In the case of \u201c<strong>M\/s. Sri SaiDatta Mutual Aided Co-operative Credit Society Vs. Asst. (ITAT Hyderabad)\u201d&nbsp;it<\/strong> says that<strong>&nbsp;<\/strong>consent of&nbsp;<strong>Mutuality cannot<\/strong>&nbsp;be denied simply for the reason that there are two classes of members as per bye-laws of Society<\/li>\n\n\n\n<li>In the case of<strong>&nbsp;\u201cITO Vs. Nannambra Service Cooperative Bank Ltd. (ITAT Cochin)\u201d&nbsp;<\/strong>says that<strong>&nbsp;<\/strong>the Primary Agricultural Credit Society (PACS) was not permitted to obtain&nbsp;<strong>Banking License<\/strong>; therefore, it is not authorized for deduction under section 80P(2).<\/li>\n\n\n\n<li>In the case of<strong>&nbsp;\u201cIncome-tax Officer Vs. The Somavamsha Sahasrajuna Kshatriya Credit Co-operative Society (ITAT Bangalore)\u201d,&nbsp;<\/strong>it says that<strong>&nbsp;<\/strong>Credit co-operative society providing credit facilities to members of Society can demand deduction u\/s 80P(2)(a)(i)<\/li>\n\n\n\n<li>In the case of \u201c<strong>&nbsp;Income Tax Officer Vs. Shri Bapooji Pattin Southard Sahakari Niyamit (ITAT Bangalore),\u201d&nbsp;it<\/strong> says that<strong>&nbsp;<\/strong>Society allowing      Loan to non-members cannot demand for the claim deduction U\/s. 80P<\/li>\n\n\n\n<li>In the case of \u201c<strong>Jaipur Sahakari Kraya Vikraya Samiti Ltd. Vs. ITO (ITAT Jaipur)\u201d,&nbsp;<\/strong>it says that, the Auditor\u2019s opinion on Section 80P Interpretation, cannot be an Information for Reopening U\/s 147<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>By agreeing to the broad-spectrum, the insight says that the Income of Co-operative Societies is not actionable to taxes. For that reason, many societies do not bother to take PAN No. and <a href=\"https:\/\/corpbiz.io\/income-tax-return-filing\"><strong>file Income Tax returns<\/strong><\/a><strong>.<\/strong> It is a complete wrong observation since though certain types of Income of Co-operative Societies are exempt; there are other revenues which are chargeable to Tax. With this, <a href=\"https:\/\/corpbiz.io\/\"><strong>Corpbiz<\/strong><\/a> has practiced professionals to help you with the process of filing Annual Returns of your Society, ensuring the successful and appropriate completion of your work.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/itr-rectification-a-complete-guide-on-how-to-rectify-itr-online\/\">ITR Rectification \u2013 A Complete Guide on How To Rectify ITR Online\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>An annual return is a legal document that contains details of a Society\u2019s shares, members of the Society, changes in memberships, all the governance resolutions etc. Usually, people assumed that the Income of small societies is not taxable; therefore, there is no requirement to file Income Tax return. Well, this assumption is no more correct, [&hellip;]<\/p>\n","protected":false},"author":20,"featured_media":7759,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[10,152],"tags":[539],"acf":{"service_id":"78"},"authorName":"Archita Bhattacharjee","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/WhatsApp-Image-2020-03-18-at-11.26.19-AM-1.jpeg","authorDescription":"Archita Bhattacharjee is working as Legal Analyst (Team Lead, Research &amp; Development) at Corpbiz and has proving experience about 2 years as Corporate Legal Researcher in law firms as well as Rajya Sabha and authors in diverse publications. She has refined her skills by representing India in Paris, France and the University of Leiden over implications of International Humanitarian and Criminal Law being certified member of many Legal Centers.","postViews":7214,"readingTime":8,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/7734"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=7734"}],"version-history":[{"count":29,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/7734\/revisions"}],"predecessor-version":[{"id":63801,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/7734\/revisions\/63801"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/7759"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=7734"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=7734"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=7734"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}