The Finance Minister, Nirmala Sitharaman in her Budget Speech has announced the reduction in Alternate minimum tax rate and Surcharge for Cooperatives.
Currently, cooperative societies are required to pay Alternative Minimum Tax at the rate of eighteen and one half per cent. However, companies pay the same at the rate of fifteen per cent.
To provide a level playing field between co-operative societies and companies, Ms. Sitharam has proposed to reduce this rate for the cooperative societies also to fifteen per cent.
“I also propose 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 crores,” the Finace minister added.
This would help in enhancing the income of cooperative societies and its members who are mostly from rural and farming communities.Subscribe Taxscan Premium to view the Judgment