The government proposes to reduce the minimum alternative tax (MAT) for cooperative societies from current 18.5% to 15% on a par with private companies, Finance Minister Nirmala Sitharaman said on February 1.
Presenting the Budget 2022-23 in the Lok Sabha, she said the government has also proposed to reduce the surcharge on cooperative societies from the present 12% to 7% for those having total income of more than ₹1 crore up to ₹10 crore.
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“To provide a level-playing field between cooperative societies and companies, I propose to reduce this rate (MAT) for the cooperative societies also to 15%,” the Finance Minister said.
Currently, the cooperative societies are required to pay MAT at the rate of 18.5%, while the companies paid at the rate of 15%, she added.
Reducing the surcharge on cooperative societies from the present 12% to 7%, she said the reduction in surcharge is for those having a total income of more than ₹1 crore to up to ₹10 crore.
“This will help in enhancing income of cooperative societies and its members who are mostly from the rural and from farming communities,” she added.
