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85. Deduction of income of cooperative society from banking activities
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85. Deduction of income of cooperative society from banking activities.—(1) A person, being a primary co-operative society, shall be allowed a deduction to the extent of profits derived from the business of providing banking, or credit, facility to its members.
(2) In this section "primary co-operative society" means—
(a) a "primary agricultural credit society" within the meaning of Part V of the Banking Regulation Act, 1949 (10 of 1949) ; or
(b) a "primary co-operative agricultural and rural development bank", which—
(i) has its area of operation confined to a taluk ; and
(ii) is mainly engaged in providing long-term credit for agricultural and rural development activities.
Clause 85 seeks to provide that a primary co-operative society shall be eligible for a deduction of the entire amount of its income from the business of providing banking, or credit, facility to its members.
The said clause further provides that a primary cooperative society means a "primary agricultural credit society" within the meaning of Part V of the Banking Regulation Act, 1949 or a "primary co-operative agricultural and rural development bank" having its area of operation confined to a taluk and being mainly engaged in providing long-term credit for agricultural and rural development activities.
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