Income-tax Act, 2025

Tax on income of certain new manufacturing co-operative societies - Section 204

Tax on income of certain new manufacturing co-operative societies.

204. (1) Irrespective of anything contained in this Act but subject to the provisions of Part A, B, E and this Part (other than section 203) of this Chapter, the income-tax payable in respect of the total income of an assessee, being a co-operative society, resident in India, engaged in the business of manufacture or production of any article or thing, shall at the option of such assessee, be computed at the rates specified in column A of the said Table, if the conditions contained in column B thereof are fulfilled.

TABLE

Total income and rate of taxConditions

AB

(a) 15% on the total income other than the income mentioned in clauses (b), (c) and (d);

(b) 22% (without any deduction or allowance in respect of any expenditure or allowance) on such income,

(i) which has neither been derived from nor is incidental to manufacturing or production of an article or thing; and

(ii) in respect of which no specific rate of tax has been provided separately under this Part;

(c) 22% on short-term capital gains derived from transfer of a capital asset on which no depreciation is allowable under this Act;

(d) 30% on the income deemed so under section 205(4).

Such co-operative society

(a) exercises the option in the manner provided in sub-section (2);

(b) has been set-up and registered on or after the 1st April, 2023;

(c) has commenced manufacturing or production of an article or thing on or before the 31st March, 2024;

(d) the total income of which is computed as per the provisions of sub-section (3); and

(e) fulfils all the conditions provided in section 205(2).

(2) The option under this section shall be exercised by the assessee in the manner as may be prescribed subject to the following conditions:

(a) it shall be exercised on or before the due date speci .... To read the full section download the app from Google Play store