The rates of income tax, surcharge, HEC and AMT, applicable in the case of cooperative societies in India in respect of AY 2023-24, are as follows:
Income Tax Rates (Normal Tax Regime)
The income tax rates/slabs (under normal tax regime) applicable in the case of cooperative societies in respect of AY 2023-24 are as under:
| Total Income (Rs) | Income Tax Slab/ Rate |
| Upto 10,000 | 10% of Total Income |
| 10,001 to 20,000 | Rs 1,000 plus 20% of Total Income |
| Above 20,000 | Rs 3,000 plus 30% of Total Income |
Surcharge Rates
In cases where the total income of a cooperative society exceeds Rs 1 crore but is upto Rs 10 crore, the surcharge rate shall be 7% from AY 2023-24 (except for cooperative societies opting for Section 115BAD) and where the total income exceeds Rs 10 crore the surcharge rate shall be 12%, subject to provisions relating to marginal relief, if any.
Health & Education Cess (HEC) Rates
The aggregate amount of income tax and surcharge shall be subject to HEC at 4%.
Alternate Minimum Tax (AMT) Rates
Where adjusted total income (ATI) exceeds Rs 20 lac, the AMT shall be applicable u/s 115JC at 15% of ATI (from AY 2023-24) + surcharge + HEC in cases where the cooperative society has claimed deductions u/s 80H to 80RRB (except 80P), 35AD, and 10AA. However, in respect of units of a cooperative society located in the IFSC deriving income solely from convertible foreign exchange (CFE), AMT can be paid at the concessional rate of 9% (instead of 15%) + surcharge + HEC.
Special Income Tax Rates (Alternate Tax Regime)
Cooperative societies can opt for the Special Tax Rate System (alternate tax regime of lower flat tax rate), subject to certain conditions prescribed under respective sections:
| Section | Conditions | Tax Rate |
| 115BAD | Not claiming specified deductions, exemptions, or incentives. | 22% |
| 115BAE | Set up and registered on or after 01-04-2023. Engaged in manufacture or production and commences operations on or before 31-03-2024. Also not claiming specified deductions, exemptions, or incentives. | 15% (Income from manufacturing activities) |
Surcharge Rates
The surcharge rate shall be flat 10%.
Health & Education Cess (HEC) Rates
The aggregate amount of income tax and surcharge shall be subject to HEC at 4%.
Alternate Minimum Tax (AMT) Rates
Cooperative societies opting for Sections 115BAD or 115BAE are not subject to provisions of AMT. Further, the provisions regarding computation and carry forward of AMT credit are also not applicable.
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Reduction in AMT and Surcharge for Co-operative Societies
Related Posts: >> Finance Act, 2022 >> Finance Act, 2023 >>