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Microlesson · 5-min read

Co-operative Societies — Rates of Tax (incl. 115BAD & 115BAE)

# Co-operative Societies and Rates of Tax

## Normal (Slab) Regime

Total incomeTax
≤ ₹10,00010% of total income
> ₹10,000 ≤ ₹20,000₹1,000 + 20% of (TI − ₹10,000)
> ₹20,000₹3,000 + 30% of (TI − ₹20,000)

## Concessional Regimes

TypeSectionRate
Manufacturing co-op society (set up & registered on/after 1.4.2023, begins manufacture before 31.3.2024)115BAE15% of income from/incidental to manufacturing
Other resident co-op society opting for concessional regime115BAD22% of total income

Conditions: Societies opting for 115BAD/115BAE must compute total income without certain deductions (conditions similar to those for DTR u/s 115BAC). Alternate Minimum Tax (AMT) u/s 115JC does NOT apply to societies opting for these sections.

## Surcharge & Marginal Relief

SituationSurcharge
TI > ₹1 cr ≤ ₹10 cr (normal regime)7% — marginal relief like individuals; same rate for special incomes
TI > ₹10 cr (normal regime)12% — marginal relief like individuals; same rate for special incomes
Opting 115BAD / 115BAE10% flat — NO marginal relief

Worked example

### Example 1

Normal slab computation: A co-operative society has total income of ₹25,000. Tax = ₹3,000 + 30% of (₹25,000 − ₹20,000) = ₹3,000 + ₹1,500 = ₹4,500 (before cess).

### Example 2

Concessional manufacturing society: A co-op society registered 1.6.2023 commencing manufacture on 1.1.2024 opts for 115BAE. Its manufacturing income is taxed @15% + surcharge @10% (flat, no marginal relief) + 4% cess; AMT does not apply.

⚠️ Common exam mistakes

  • Applying marginal relief to a society that has opted for 115BAD/115BAE — none is allowed (surcharge is a flat 10%).
  • Applying AMT u/s 115JC to a society that opted for 115BAD/115BAE — AMT is excluded for them.
  • Using 12% surcharge instead of 7% for the ₹1 cr–₹10 cr band under the normal regime.
  • Treating the 115BAE 15% rate as applying to all income — it applies to income derived from / incidental to manufacturing.
Reference: 115BAD, 115BAE
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