Rationalization of provisions of the Act to promote the growth of co-operative societies
1. Section 115JC of the Act, inter alia, provides for the alternate minimum tax (AMT) payable by co-operative societies, which is at the rate of 18.5%. However, vide the Taxation Laws (Amendment) Act, 2019, the Minimum Alternate Tax (MAT) rate for companies has been reduced to 15%. Therefore, in order to provide parity between co-operative societies and companies, it is proposed to modify sub-section (4) of section 115JC to reduce the AMT rate at which co-operative societies are liable to pay income-tax to 15%. Consequential amendment is also proposed in clause (b) of section 115JF in relation to the definition of "alternate minimum tax".
![Budget 2022: AMT rate for co-operative societies reduced to 15 Budget 2022: AMT rate for co-operative societies reduced to 15](/img/preview/custom/20210417165253_slabrates.jpg?imgver=21092)
2. These amendments will take effect from 1st April, 2023 and will accordingly apply in relation to the assessment year 2023-24 and subsequent assessment years.
[Clauses 29 and 30]