Section 149 — Deduction in respect of income of co-operative societies
Old Act equivalent: Section 80-IA of IT Act 1961 Sub-part: Deductions from Gross Total Income
Statutory Text
- (1) If the gross total income of an assessee, being a co-operative society,
includes any income referred to in sub-section (2), the sums specified in the said sub-section shall, in accordance with and subject to the provisions of this section, be allowed as deduction in computing the total income of such assessee. (2) The sums referred to in sub-section (1) shall be the following:— ( 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 agricultural produce grown by its members; or ( iv) the purchase of agricultural implements, seeds, livestock or other articles intended for agriculture for the purpose of supplying them to its members; or ( v) the processing, without the aid of power, of the agricultural produce of its members; or ( vi) the collective disposal of the labour of its members; or ( vii) fishing or allied activities, that is to say, the catching, curing, pro - cessing, 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; ( b) in the case of a co-operative society, being a primary society engaged in supplying milk, oilseeds, 15[cotton seed, cattle feed, ] fruits, or vegetables raised or grown by its members to— ( i) a federal co-operative society, being a society, engaged in the busi - ness of supplying milk, oilseeds, 15[cotton seed, cattle feed, ] fruits or vegetables; or ( ii) the Government or a local authority; or ( iii) a Government company, as defined in section 2( 45) of the
Companies Act, 2013 (18 of 2013), or a corporation established by or under a Central Act or State Act or Provincial Act, engaged in supplying milk, oilseeds, 15[cotton seed, cattle feed, ] fruits or vege - tables, 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 ( b), (either independently of, or in addition to, all or any of the activities so specified), that amount of profits and gains attributable to such activities as does not exceed— ( i)100000, if the society is a consumers’ co-operative society; and ( ii)50000, in any other case; 16[(d) in respect of any income derived by the co-operative society from its invest - ments with any other co-operative society by way of— (3) In the case of a co-operative society as referred to in sub-section (2)( a)(vi) or (vii), provisions of sub-section (1) shall only apply when the rules and bye-laws of the society restrict the voting rights to the following classes of its members:— ( i) the individuals who contribute their labour or carry on fishing or
allied activities; ( ii) the co-operative credit societies which provide financial assistance to the society; ( iii) the State Government. (4) The deduction under sub-section (1) in relation to the sums specified in sub-
section (2)( a) or ( b) or ( c) or sub-section (3), shall be allowed with reference to the income referred to in those sub-sections included in the gross total income after reducing the deduction under section 138, if the assessee is also entitled to such deduction. (5) The provision of this section shall not apply to any co-operative bank which is not a primary agricultural credit society or a primary co-operative agricultural and rural development bank. 17[(6) For the purposes of this section,–– ( a) “consumers’ co-operative society” means a society for the benefit of the consumers; ( b) “primary agricultural credit society” has the same meaning as assigned to it in Part V of the Banking Regulation Act, 1949 (10 of 1949); and
Provisos
None.
Explanations
None.
Tables
None.
Cross-References
To be updated.
Notes
- Verification status: pending
- Auto-generated from IT Act 2025 PDF on 2026-04-13