Taxes on the Cooperative Societies
Taxes on the Cooperative Societies
Posted On: 29 MAR 2023 5:38PM by PIB Delhi
As per Budget announcement 2023-24, following income tax related benefits are being proposed for the Cooperative Societies:
- The new co-operative society formed on or after 01.04.2023, which commences manufacturing or production by 31.03.2024 and do not avail of any specified incentive or deduction, is proposed to be allowed an option to pay tax at a concessional rate of 15 per cent similar to what is available to new manufacturing companies. This announcement would benefit new cooperatives engaged in manufacturing/production activities.
- For sugar co-operatives, for years prior to assessment year 2016-17, if any deduction claimed for expenditure made on purchase of sugarcane has been disallowed, same shall be recomputed after allowing such deduction upto the price fixed or approved by the Government for such previous years. This decision of the Government will provide benefit of approximately
₹10,000 crore of principal amount of Income-Tax to sugar cooperatives. For this purpose, all sugar co-operatives, who are eligible for deduction, are required to approach the assessing officer, suitably.
- A higher limit of Rs. 2 lakh per member for cash deposits to and loans in cash by Primary Agricultural Cooperative Societies (PACS) and Primary Cooperative Agricultural and Rural Development Banks (PCARDBs) has been provided.
- A higher limit of Rs. 3 Crore for TDS on cash withdrawal has been provided to cooperative societies.
Similarly, during Financial Year 2022-23, following tax benefits were also provided to Cooperative Societies:
- Reduction in Minimum Alternate Tax (MAT): MAT reduced for cooperatives from 18.5% to 15%.
- Reduction in surcharge on cooperative societies: Surcharge reduced from 12 % to 7% for co- operative societies having income between Rs. 1 to 10 Cr.
This was stated by the Minister of Cooperation, Shri Amit Shah in a written reply to a question in the Rajya Sabha.
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