Deduction of income of cooperative society from banking activities.
85. (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; or 10 of 1949.
(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.
