The central government in the Union Budget 2022-23 has reduced alternate minimum tax rate and surcharge for Cooperatives to provide them with a level playing field with companies.
Currently, cooperative societies are required to pay Alternate Minimum Tax at the rate of 18.5%. However, companies pay the same at the rate of 15%.
“To provide a level playing field between co-operative societies and companies, I, propose to reduce this rate for the cooperative societies also to 15%,” finance minister Nirmala Sitharaman said while announcing her budget proposal on Tuesday.
She also proposed to reduce the surcharge on co-operative societies from present 12 per cent to 7 per cent for those having total income of more than ₹1 crore and up to ₹ 10 crore.
“This would help in enhancing the income of cooperative societies and its members who are mostly from rural and farming communities,” she said.
