Union Budget 2022 | Government proposes to reduce MAT for cooperative societies to 15%, surcharge to 7%

“To provide a level-playing field between cooperative societies and companies, I propose to reduce this rate (MAT) for the cooperative societies also to 15%,” the Finance Minister said.

Updated - February 01, 2022 01:58 pm IST

Published - February 01, 2022 01:56 pm IST - New Delhi:

Finance Minister Nirmala Sitharaman presents the Union Budget 2022 in the Lok Sabha, in New Delhi on February 1, 2022. Videograb: PIB India

Finance Minister Nirmala Sitharaman presents the Union Budget 2022 in the Lok Sabha, in New Delhi on February 1, 2022. Videograb: PIB India

The government proposes to reduce the minimum alternative tax (MAT) for cooperative societies from current 18.5% to 15% on a par with private companies, Finance Minister Nirmala Sitharaman said on February 1.

Presenting the Budget 2022-23 in the Lok Sabha , she said the government has also proposed to reduce the surcharge on cooperative societies from the present 12% to 7% for those having total income of more than ₹1 crore up to ₹10 crore.

Explained | Understanding the formulation of the Budget

“To provide a level-playing field between cooperative societies and companies, I propose to reduce this rate (MAT) for the cooperative societies also to 15%,” the Finance Minister said.

Currently, the cooperative societies are required to pay MAT at the rate of 18.5%, while the companies paid at the rate of 15%, she added.

Reducing the surcharge on cooperative societies from the present 12% to 7%, she said the reduction in surcharge is for those having a total income of more than ₹1 crore to up to ₹10 crore.

“This will help in enhancing income of cooperative societies and its members who are mostly from the rural and from farming communities,” she added.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.