In a country like India, which had adopted socialistic pattern of society, the co-operative societies have to play an important role and to encourage them, they have to be put in privileged position. One of the privileges which the co-operative societies enjoy is in respect of income-tax payable by them.
“Co-operative society” means a society registered under the Co-operative Societies Act, 1912 (II of 1912) or under any other law for the time being in force in any State for the registration of co-operative societies [Section 2(19)1.
Urban Consumer’s Co-operative Society.
Under section 80P(2) (explanation), such a society has been defined as “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”.
“Co-operative bank” and “primary agricultural credit society”shall have the same meaning as assigned to them in Banking Regulation Act, 1949.
“Primary Co-operative agricultural and rural development bank”means a society having its area of operation confined to a taluk and the primary object of which is to provide for long term credit for agricultural and rural development activities.
‘Consumer’s Co-operative Society’means a society for the benefit of consumers.
Computation of Total Income. The total income of a Co-operative Society is to be computed in accordance with the different provisions of the Income-tax, Act, 1961. The income is to be computed headwise.