Interest Income from Deposits with Co-operative Banks Eligible for Deduction u/s 80P(2)(d) of Income Tax Act: ITAT

The Income Tax Appellate Tribunal (ITAT) ruled that interest income earned from deposits with cooperative banks is eligible for deduction under section 80P(2)(d) of the Income Tax Act. This provision allows cooperative societies to claim deductions for income from investments in cooperative banks. The ITAT’s decision clarified that the deduction applies to interest income earned by cooperative societies, as long as the interest is derived from deposits made with cooperative banks, further reinforcing the financial benefits available to cooperative organizations under the tax code.