Union Budget 2026-27 - Finance Bill, 2026

In the case of co-operative societies, the rates of income-tax have been specified in Paragraph B of Part I-B of the First Schedule to the Bill. These rates will continue to be the same as those specified for FY 2025-26. The amount of income-tax shall be increased by a surcharge at the rate of 7% of such income-tax in case the total income of a co-operative society exceeds one crore rupees but does not exceed ten crore rupees. Surcharge at the rate of 12% of such income-tax shall continue to be levied in case of a co-operative society having a total income exceeding ten crore rupees.

2. Marginal relief is provided in cases of surcharge.

3. On satisfaction of certain conditions, a co-operative society resident in India shall have the option to pay tax at 22% as per the provisions of section 203 of the Act. Surcharge would be at 10% on such tax.

 

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Full Text:

Union Budget 2026-27 - Finance Bill, 2026

Co-operative societies: unchanged tax rates, tiered surcharge with marginal relief, and optional lower-rate tax regime with reduced surcharge. Co-operative societies are taxed under Paragraph B of Part I B of the First Schedule with rates unchanged from the prior year. Surcharge applies in tiers according to total income, with marginal relief available to reduce surcharge impact where appropriate. A resident co-operative society that satisfies prescribed conditions may elect an alternative lower-rate tax regime; when elected, a specified lower surcharge percentage applies to that tax.