CMA Intermediate · Direct and Indirect Taxation · Agricultural Income
Which co-operative society is entitled to the deduction in section 149(2)(a)(vi) for collective disposal of the labour of its members?
The society must have rules and bye-laws restricting voting rights to individuals contributing their labour, co-operative credit societies giving it financial assistance, and the State Government. Section 149(3) imposes this condition on labour-disposal and fishing societies for the deduction.
- AOne whose bye-laws restrict voting rights to contributing individuals, credit societies financing it, and the State GovernmentCorrect
- BOne whose bye-laws give voting rights to all depositors and investors equally
- COne that processes members' produce with the aid of power
- DOne whose gross total income is below Rs. 20,000
Explanation
Section 149(3) makes the clause (a)(vi) or (vii) deduction available only if the rules and bye-laws restrict voting rights to labour-contributing or fishing individuals, co-operative credit societies financing the society, and the State Government. The other options state conditions not required by that sub-section.
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