Interest Income from FDRs with other Cooporative Banks eligible for deduction u/s 80P (2)(d): ITAT

The ITAT has ruled that interest income earned from Fixed Deposits (FDs) with other cooperative banks is eligible for deduction under Section 80P(2)(d) of the Income Tax Act. This provision allows for tax benefits on income earned by cooperative societies from other cooperative banks. The ruling provides clarity on the application of Section 80P(2)(d) in relation to interest income, ensuring that cooperative societies can continue to avail themselves of tax deductions. This decision is important for the financial planning of cooperative societies, offering them greater tax relief.