New Tax Regime for Resident Cooperative Societies: Section 115BAE Imposes 15% Tax, Conditions Apply
Section 115BAE, effective from April 1, 2024, outlines the tax regime for newly formed resident cooperative societies in India. These societies, registered on or after April 1, 2023, and commencing manufacturing by March 31, 2024, are taxed at 15% if specific conditions are met. Income unrelated to manufacturing is taxed at 22%, with no deductions allowed. Short-term capital gains are also taxed at 22%, and a surcharge of 10% applies. The regime prohibits certain deductions and mandates compliance with arm's length pricing for transactions. Once opted, the tax regime cannot be withdrawn for subsequent years.