Co-operative Bank – Section 2(31) | Income-tax Act, 2025 vs 1961
§ 2(31) · Income-tax Act, 2025
Co-operative bank
Definition — Section 2(31) read with Banking Regulation Act, 1949, Part V, S.5(cci)
Has the same meaning as specified in Part V of the Banking Regulation Act, 1949. As defined therein, "Co-operative Bank" means a State Co-operative Bank, a Central Co-operative Bank and a Primary Co-operative Bank — where a Primary Co-operative Bank is a co-operative society (other than a primary agricultural credit society) whose primary object is the transaction of banking business, with paid-up share capital and reserves of less than one lakh rupees, and whose bye-laws do not permit admission of any other co-operative society as a member.
Act Comparison
Income-tax Act, 2025
2(31)
Co-operative bank
Income-tax Act, 1961
—
No direct equivalent
Newly defined in 2025
Key Points
- New explicit definition in the 2025 Act
- Co-operative banks have specific deduction provisions under the 2025 Act — maps to Section 80P of the 1961 Act
- Distinction from co-operative society is important for deduction eligibility — co-operative banks are excluded from certain deductions available to co-operative societies
💡 Practical Note
Post the 2021 amendment, multi-state co-operative banks are no longer eligible for the Section 80P deduction — a key change for credit co-operatives.
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