The government is reducing the alternative minimum tax for cooperative societies. Details


Union Budget 2022: Finance Minister Nirmala Sitharaman proposed on Tuesday to reduce the Alternative Minimum Tax (AMT) for cooperative societies from the current 18.5% to 15%, to the same level as private companies.

She said the government has also proposed to reduce the surtax on co-operative societies from the current 12% to 7% for those with total income above 1 crore up to 10 crores.

“To ensure fair conditions of competition between cooperative societies and companies, I propose to reduce this rate (AMT) for cooperative societies also to 15%”, declared the Minister of Finance during the presentation of the 2022-23 budget. .

Currently, she said, cooperative societies are required to pay AMT at the rate of 18.5%, while businesses pay at the rate of 15%.

The Minister of Finance reduced the surtax on co-operative corporations from the current 12% to 7% and said the reduction in the surtax applies to those whose total income exceeds 1 crore to up to 10 crore.

“This will help improve the incomes of cooperative societies and its members who are mostly from rural and farming communities,” Sitharaman added.

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