Section 115BAD: Alternate Taxation Scheme for Co-Operative Societies



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Section 115BAD offers a special tax scheme for resident co-operative societies in India, allowing them to opt for a 22% tax rate on their income from assessment year 2021-22 onwards. However, to avail this option, certain conditions must be met. These include not claiming various exemptions, deductions, or setting off losses that were carried forward from previous years, with a few exceptions. If these conditions aren't fulfilled, the option becomes invalid for the current and subsequent assessment years.

(1) A co-operative society resident in India, for any previous year relevant to the assessment year beginning on or after the 1st day of April 2021, shall, at the option of such person, be computed at the rate of 22%, if the conditions contained in sub-section (2) are satisfied. (2) Consequence if prescribed conditions are not fulfilled (Proviso to section 115BAD(1)]: Where the person fails to satisfy the conditions contained in sub-section (2) in computing its income in any previous year, t
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