Report No. 12
82. Co-operative society.-
(1) Income-tax shall not be payable by a co-operative society, including a co-operative society carrying on the business of banking,-
(i) in respect of profits and gains of business carried on by it;
(ii) in respect of interest and dividends derived from its investments with any other co-operative society;
(iii) in respect of any income derived from the letting of godowns or warehouses for storage, processing or facilitating the marketing of commodities;
(iv) in respect of any interest on securities chargeable under section 18 or any income from property chargeable under section 22, where the total income of such society does not exceed twenty thousand rupees and the society is not a housing society or an urban consumer's society or a society carrying on transport business.
[Section 14(3), main para.]
(2) For the purposes of this section an "urban consumers' co-operative society" means a society for the benefit of consumers within the limits of a municipal corporation, municipality, municipal committee, notified area committee, town area or cantonment.
[Section 14(3), Expin.]
(3) The provisions of sub-section (1) shall not apply to-
(i) the Sanikatta Saltowners' Society ;
(ii) a co-operative society carrying on insurance business in respect of the profits and gains of that business computed in accordance with section 44 [Rule 9 of the Schedule].
[Section 14(3), proviso]