Ours is a Registered Cooperative society with the same status appearing in IT Site. But as per PAN issued by IT Dept, the Fourth character is showing "L" instead of "A".
Now we want to opt for Sec 115BAD.
All our Advance tax and Self asst tax for the year has been paid under the existing PAN.
Please advice.
Thanks in advance
| Yes, cooperative societies can opt for the concessional tax rate under Section 115BAD. Here is the complete position: 1. Section 115BAD: Introduced by Finance Act 2020, effective from AY 2021-22. It provides a concessional income tax rate of 22% (plus surcharge 10% + cess 4%) for cooperative societies, effectively bringing the total tax rate to approximately 25.17%. 2. Who Can Opt: Any cooperative society that is a resident in India can opt for this section. 3. Conditions for Opting: - The society must not avail any specified deductions/exemptions (similar to Section 115BAA for companies): → No deduction under Chapter VI-A (except Section 80JJAA) → No deduction under Section 10AA (SEZ units) → No additional depreciation under Section 32(1)(iia) → No investment allowance under Section 32AD, 33AB, 33ABA → No deduction under 35, 35AD, 35CCC → No Section 80IC, 80IE type area-based deductions - Set-off of brought forward losses attributable to above deductions not allowed 4. How to Opt: File Form 10-IF on the IT portal before the due date of filing ITR for the first year in which the option is exercised. The option once exercised cannot be withdrawn. 5. MAT: Section 115BAD societies are NOT subject to AMT (Alternate Minimum Tax under Section 115JC) — this is a significant benefit. 6. Budget 2023 Update: The rate for Section 115BAD was further reduced to 15% for new manufacturing cooperative societies under Section 115BAE — check if applicable to your type of cooperative. |
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