It is generally understood ( very wrongly ) that the income of a cooperative society is exempt under Income Tax Act . In fact the the cooperative society is treated under I.T.Act very distinctly. For example , although ,it is treated as Association of Persons or AOP. However, it should be noted that co-operative society has its own rate of tax and the tax rate applicable to AOP (which is same as that of individuals) is not applicable to a cooperative society . For example , the provision u/s 67A and section 87 of the I.T.Act , both which relates to method of computing income of a member’s share in an AOP excludes a cooperative society.
Easy Chart for 80P Deduction to Cooperative Society
The bulk of deduction , which actually make cooperative society from obligation to pay tax is given in section 80 of the Income Tax Act.