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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