Chapter 21: Co-operative Society

l
Tax Rates For Co-op Society

Total Income upto 10,000 10%

Total Income > 10,000 upto 20,000 20%
Total Income > 20,000 30%

Surcharge:
If Total Income>1 cr upto 10 cr 7%
If Total Income>10 cr J Company

Cane
jaisa
12%

AMT Rate:
In Case of Co-operative Society, AMT Applicable @ 15% instead of 18.5%

See 115 BAD:. Tax on Income of Co-op Societies

→ Tax @ 22% + surcharge 10% + cess 4% (Effective Rate - 25.168%)

→ Assessee can not claim certain deductions → (as given 115BAA,BAB,BAC)
→ Any deduction under chapter Vl-A not available except Sec 80JJAA & Sec 80LA.
→ Tax on Special Rates of Income - Special Rates(111A,112,112A) + surcharge 10%
+ 4% Cess.
→ AMT not applicable, Hence AMT Credit will lapse.
→ Assessee can exercise this option on or before due date of ROI u/s 139(1).

Deduction in respect of income of Co-operative societies [Section 80P]

100% deduction is allowed in respect of profits and gains of any one or more of the
following activities to a co-operative society engaged in :

Bowling Business adhar dene members Ar

(1) carrying on the business of banking or providing credit facilities to its members; or
(2) a cottage industry; or Gaonwi industry Heh ki mantis he
(3) the marketing of the agricultural produce grown by its members; or
(4) the purchase of agricultural implements, seeds, livestock or other articles intended
for agriculture or for the purpose of supplying them to its members; or
cow bail for whet
Khete be life beef and Jotuehe be

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 he process
Bina Bijli name

(5) the processing without the aid of power, of the agricultural produce of its
members; or
(6) the collective disposal of the labour to its member; or
(7) fishing and other allied pursuits, such as catching, curing, processing, preserving,
storing and marketing of fish or the purchase of materials and equipment in
connection therewith for the purpose of supplying them to their members.

Fishing learn
However, the exemption in respect of income referred to in (6) or (7) will be available
only in the case of those co-operative societies which, under their rules and by-laws,
restrict the voting rights to labour and fishing we Exemption tables
member jo blued Mileya Tab
Members who the co-operative the State
fishy tear
contribute their labour raha credit societies which Government
vai
force or who actually ya provide financial t
labour I numb
carry on the fishing or hehe assistance to the jisue
aa rally
other allied activities hai society and loan
diya haivo

Deduction in respect of profit of primary co-operative societies:

100% deduction is allowed from GTI in case of a primary co-operative society

engaged in supplying milk, oilseeds, fruits or vegetables raised or grown by its
members to :

a federal co-operative the Government or a Government company

society engaged in a local authority or (engaged in supplying milk,
supplying milk, oilseeds, oilseeds, fruits or vegetables,
fruits or vegetables as the case may be, to the
public),

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 Deduction of Other Income Available to Co-operative Societies:

→ 100% Deduction of Interest & Dividend is allowed from Investment with any Other
Co-operative societies. In t Div 1001 dean alled

→ 100% Deduction of Income from letting out of godowns or warehouses for storage,
processing or facilitating the marketing of commodities. tent pediye
→ Small Co-operative Societies whose GTI is upto Rs. 20,000 gets 100% Deduction of
Interest on Securities & House Property Income
not allowed to Housing society, or urban consumer
society, or society having transport business or
Manufacturing business with the aid of power.

→ General Deduction of 50,000 is available to Co-operative Societies & 1,00,000 is

available to Consumer Co-operative Societies.
S By Cooperative society is not engaged
witega tab
yay pop aalii in any ofthe activities mentionedabove
yearilesa
Co-operative Banks & Agricultural Credit Societies

Sec 80P Deduction

Available Not Available

• Primary Agricultural Credit Society • All Co-operative Banks
• Primary co-operative agricultural and • Regional Rural Banks
Rural development banks

Author's Note: Questions from this chapter is covered in Ch-12 of Question Bank
Hamara Note Transfer fees relieved looperative
by Housing societies is
not chargeable to Tax in the hands q such societies

t
Ye question aayato PaBP tea see29
walk point likhne hat

21.3