Budget 2020 proposes Concessional Tax Rate for Co-operatives

Co-operatives Tax Rate - Concessional - Budget 2020 - Budget Scan - Finance Minister - Societies - Taxscan

In a budget 2020 presented yesterday has announced significant changes into co-operatives. Cooperative societies are currently tax at a rate of 30% with surcharge and cess.

As a major concession, and in order to bring parity between the cooperative societies and corporates, the Finance Minister has proposed to provide an option to cooperative societies to be taxed at 22% plus 10% surcharge and 4% cess with no exemptions/deductions.

The Finance Minister also proposed to exempt these societies from Alternative Minimum Tax (AMT), just like companies under the new tax regime are exempt from the Minimum Alternate Tax (MAT).

As a major concession and in order to bring parity between the cooperatives societies and corporates, the Union Budget proposed to provide an option to cooperative societies to be taxed at 22% + 10% surcharge and 4% cess with no exemption/deductions. These cooperatives are currently the Co-operatives tax rate at 30% with surcharge and cess.

The Finance Minister also proposed to exempt these cooperative societies from Alternate Minimum Tax (AMT) just like Companies that under the new Co-operatives Tax Rate regime are exempted from the Minimum Alternate Tax (MAT).

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