The government proposes to reduce the Alternate Minimum Tax (AMT) for cooperative societies from current 18.5 per cent to 15 per cent at par with private companies, Finance Minister Nirmala Sitharaman said on Tuesday.
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 per cent to 7 per cent for those having a total income of more than Rs 1 crore up to Rs 10 crore.
"To provide a level-playing field between cooperative societies and companies, I propose to reduce this rate (AMT) for the cooperative societies also to 15 per cent," the finance minister said.
Currently, the cooperative societies are required to pay AMT at the rate of 18.5 per cent, while the companies paid at the rate of 15 per cent, she added.
Reducing the surcharge on cooperative societies from the present 12 per cent to 7 per cent, she said the reduction in surcharge is for those having a total income of more than Rs 1 crore to up to 10 crore.
"This will help in enhancing the income of cooperative societies and its members who are mostly from the rural and from farming communities," she added.
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Published 01 February 2022, 10:27 IST