Special tax rates applicable to a Co-operative societies
Assessment Year 2020-21 and Assessment Year 2021-22 | |
Total Income (Rs. ) | Rate |
Up to Rs.10,000 | 10% |
Rs.10,000 to Rs.20,000 | 20% |
Above Rs.20,000 | 30% |
Add:
(a) Surcharge: The amount of income-tax shall be increased by a surcharge at the rate of 12% of such tax, where total income exceeds one crore rupees. However, the surcharge shall be subject to marginal relief (where income exceeds one crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees).
(b) Health and Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge
9.Special tax rates applicable to a Co-operative societies
AY 2021-22 | |
Total Income (Rs. ) | Rate |
Any Income | 22% |
Note:
v The Finance Act, 2020 has inserted a new Section 115BAD in Income-tax Act to provide an option to the cooperative societies to get taxed at the rate of 22% plus 10% surcharge and 4% cess.
v The resident co-operative societies have an option to opt for taxation under newly Section 115BAD of the Act w.e.f. Assessment Year 2021-22.
v The option once exercised under this section cannot be subsequently withdrawn for the same or any other previous year.
v If the new regime of Section 115BAD is opted by a co-operative society, its income shall be computed without providing for specified exemption, deduction or incentive available under the Act.
v The societies opting for this section have been kept out of the purview of Alternate Minimum Tax (AMT).
v Further, the provision relating to computation, carry forward and set-off of AMT credit shall not apply to these assessees The option to pay tax at lower rates shall be available only if the total income of co-operative society is computed without claiming specified exemptions or deductions