{"id":32743,"date":"2026-08-09T15:09:05","date_gmt":"2026-08-09T09:39:05","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=32743"},"modified":"2026-08-09T15:51:11","modified_gmt":"2026-08-09T10:21:11","slug":"alternative-tax-regime-for-company-co-operative-societies","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/alternative-tax-regime-for-company-co-operative-societies\/","title":{"rendered":"Alternative Tax Regime for Company &#038; Co-operative Societies"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a7879d9a8491\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a7879d9a8491\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/alternative-tax-regime-for-company-co-operative-societies\/#Alternative_lower_tax_regimes_are_available_to_assessees_other_than_individualsHUFs_under_the_Income_Tax_Act\" title=\"Alternative (lower) tax regimes are available to assessees other than individuals\/HUFs under the Income Tax Act.\">Alternative (lower) tax regimes are available to assessees other than individuals\/HUFs under the Income Tax Act.<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/alternative-tax-regime-for-company-co-operative-societies\/#What_does_it_mean\" title=\"What does it mean?\">What does it mean?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/alternative-tax-regime-for-company-co-operative-societies\/#Brief_Overview_of_Each_Regime\" title=\"Brief Overview of Each Regime\">Brief Overview of Each Regime<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/alternative-tax-regime-for-company-co-operative-societies\/#Alternative_Tax_Regimes_Available\" title=\"Alternative Tax Regimes Available\u00a0\">Alternative Tax Regimes Available\u00a0<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/alternative-tax-regime-for-company-co-operative-societies\/#Alternative_Tax_Regime_for_Domestic_Companies\" title=\"Alternative Tax Regime for Domestic Companies\">Alternative Tax Regime for Domestic Companies<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/alternative-tax-regime-for-company-co-operative-societies\/#Section_115BA\" title=\"Section 115BA\">Section 115BA<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/alternative-tax-regime-for-company-co-operative-societies\/#Section_115BAA\" title=\"Section 115BAA\">Section 115BAA<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/alternative-tax-regime-for-company-co-operative-societies\/#Section_115BAB\" title=\"Section 115BAB\">Section 115BAB<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/alternative-tax-regime-for-company-co-operative-societies\/#Alternative_Tax_Regime_for_Co-operative_Societies\" title=\"Alternative Tax Regime for Co-operative Societies\">Alternative Tax Regime for Co-operative Societies<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/alternative-tax-regime-for-company-co-operative-societies\/#Section_115BAD\" title=\"Section 115BAD\">Section 115BAD<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/alternative-tax-regime-for-company-co-operative-societies\/#Section_115BAE\" title=\"Section 115BAE\">Section 115BAE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/alternative-tax-regime-for-company-co-operative-societies\/#Lower_AMT_Surcharge\" title=\"Lower AMT &amp; Surcharge\">Lower AMT &amp; Surcharge<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/alternative-tax-regime-for-company-co-operative-societies\/#Important_Compliance_Requirement\" title=\"Important Compliance Requirement\">Important Compliance Requirement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/carajput.com\/blog\/alternative-tax-regime-for-company-co-operative-societies\/#Key_Takeaway_%E2%80%93_Alternative_Tax_Regimes_Available\" title=\"Key Takeaway &#8211; Alternative\u00a0Tax Regimes Available\u00a0\">Key Takeaway &#8211; Alternative\u00a0Tax Regimes Available\u00a0<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-27082\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/07\/pexels-fauxels-3184418-scaled.jpg\" alt=\"Income Tax Scrutiny\" width=\"2560\" height=\"1707\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/07\/pexels-fauxels-3184418-scaled.jpg 2560w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/07\/pexels-fauxels-3184418-300x200.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/07\/pexels-fauxels-3184418-1024x683.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/07\/pexels-fauxels-3184418-768x512.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/07\/pexels-fauxels-3184418-1536x1024.jpg 1536w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/07\/pexels-fauxels-3184418-2048x1365.jpg 2048w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/07\/pexels-fauxels-3184418-800x533.jpg 800w\" sizes=\"(max-width: 2560px) 100vw, 2560px\" \/><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"Alternative_lower_tax_regimes_are_available_to_assessees_other_than_individualsHUFs_under_the_Income_Tax_Act\"><\/span><span style=\"color: #000080;\"><strong>Alternative (lower) tax regimes are available to assessees other than individuals\/HUFs under the Income Tax Act.<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div>\n<h3><span class=\"ez-toc-section\" id=\"What_does_it_mean\"><\/span><span style=\"color: #000080;\">What does it mean?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Income Tax Act offers certain companies and co-operative societies the option to pay tax at concessional tax rates under special provisions. However, these regimes are not the default tax regime. An eligible taxpayer must specifically opt for the regime by filing the prescribed form before the due date for filing the Income Tax Return (ITR).<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Brief_Overview_of_Each_Regime\"><\/span><span style=\"color: #000080;\">Brief Overview of Each Regime<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Alternative_Tax_Regimes_Available\"><\/span><span style=\"color: #000080;\">Alternative Tax Regimes Available\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"___1dmoc29 f10pi13n ftgm304 f1enuhaj fdclmfp f1nbblvp fat0sn4 f1ov4xf1 fekwl8i f1lmfglv f1oz7aqm f1abmfm4 f1w619qj f16h0jq8\">\n<table class=\"___1vyiefv f1ddd56o f16vktn6 f1ahpp82 f11qra4b f1uinfot fibjyge fvueend f9yszdx f1fu4s3n f3l3pb3 f10ghnd0 f8fmt76 fjvbh62 f1qrqxae f1vw5qpk fc02sbz fxawf59 fymf513 f1aoyrul f1el8yx3 f1pymoxg f1ofu761 fe6itr f7coize f1794535 f1o0pw0q fbjjl9v fk1v6el f16pyhcb f1ixlhx9 f12zef0i flu5r5u f19haqzy f1owmcxx f1oddm8q f1004tna fcoaxci fh0ee9u f15v23i2 f1dmj53 f1r1gcv9 f14z1veh ffufd3x f1ypplot f1660cg\" style=\"height: 198px;\" width=\"712\">\n<tbody>\n<tr>\n<th>Section<\/th>\n<th>Applicable To<\/th>\n<th>Form to be Filed<\/th>\n<\/tr>\n<tr>\n<th scope=\"row\">Section 115BA<\/th>\n<td>Domestic Company<\/td>\n<td>Form 10-IB<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Section 115BAA<\/th>\n<td>Domestic Company<\/td>\n<td>Form 10-IC<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Section 115BAB<\/th>\n<td>Domestic Company<\/td>\n<td>Form 10-ID<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Section 115BAD<\/th>\n<td>Co-operative Society<\/td>\n<td>Form 10-IF<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Section 115BAE<\/th>\n<td>Co-operative Society<\/td>\n<td>Form 10-IFA<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"Alternative_Tax_Regime_for_Domestic_Companies\"><\/span><strong style=\"color: #000080; font-size: 16px;\">Alternative Tax Regime for Domestic Companies<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div>\n<h4><span class=\"ez-toc-section\" id=\"Section_115BA\"><\/span><span style=\"color: #000080;\">Section 115BA<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li>Applicable to certain domestic manufacturing companies.<\/li>\n<li>Provides a concessional tax rate subject to specified conditions and restrictions on deductions.<\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"Section_115BAA\"><\/span><span style=\"color: #000080;\">Section 115BAA<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li>Available to domestic companies.<\/li>\n<li>Allows taxation at a concessional rate (commonly known as the corporate tax reform regime).<\/li>\n<li>Companies opting for this regime forego several exemptions and deductions.<\/li>\n<\/ul>\n<ul>\n<li>Allows domestic companies to pay tax at a concessional rate of <strong>22%<\/strong> (plus surcharge and cess), resulting in an effective tax rate of approximately <strong>25.17%<\/strong>.<\/li>\n<li>Companies opting for this regime must forgo various deductions, incentives, additional depreciation, and certain loss set-offs.<\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"Section_115BAB\"><\/span><span style=\"color: #000080;\">Section 115BAB<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li>Available to newly incorporated domestic manufacturing companies.<\/li>\n<li>Offers one of the lowest corporate tax rates, subject to stringent conditions regarding incorporation and manufacturing activities.<\/li>\n<\/ul>\n<ul>\n<li>Allows newly incorporated domestic manufacturing companies to pay tax at a concessional rate of 15% (plus surcharge and cess), resulting in an effective tax rate of approximately 17.16%.<\/li>\n<li>Companies must satisfy prescribed manufacturing and incorporation conditions and cannot claim specified tax incentives.<\/li>\n<\/ul>\n<\/div>\n<p><span style=\"color: #000080;\"><strong>MAT Exemption<\/strong><\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Companies opting for Section 115BAA or Section 115BAB do not need to pay Minimum Alternate Tax (MAT).<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Alternative_Tax_Regime_for_Co-operative_Societies\"><\/span><span style=\"color: #000080;\">Alternative Tax Regime for Co-operative Societies<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div>\n<h4><span class=\"ez-toc-section\" id=\"Section_115BAD\"><\/span><span style=\"color: #000080;\">Section 115BAD<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li>Provides a concessional tax regime for co-operative societies.\u00a0Requires the society to give up specified deductions and incentives.<\/li>\n<\/ul>\n<ul>\n<li>Allows resident co-operative societies to pay tax at a concessional rate of <strong>22%<\/strong> (plus surcharge and cess) instead of the normal tax rates.<\/li>\n<li>Societies opting for this regime must give up specified deductions and incentives.<\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"Section_115BAE\"><\/span><span style=\"color: #000080;\">Section 115BAE<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li>Introduces a lower tax regime for resident co-operative societies on conditions similar to those applicable under concessional corporate tax regimes.\u00a0Allows newly established manufacturing co-operative societies to pay tax at a concessional rate of 15% (plus surcharge and cess), subject to prescribed conditions.<\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"Lower_AMT_Surcharge\"><\/span><span style=\"color: #000080;\"><strong>Lower AMT &amp; Surcharge<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li>The Alternative Minimum Tax (AMT) rate for co-operative societies stands reduced to 15%.<\/li>\n<li>The surcharge on income between INR 1 crore and INR 10 crore is capped at 7%.<\/li>\n<\/ul>\n<\/div>\n<h3><span class=\"ez-toc-section\" id=\"Important_Compliance_Requirement\"><\/span><span style=\"color: #000080;\">Important Compliance Requirement<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A taxpayer who wishes to opt for any of these concessional tax regimes must:<\/p>\n<ol>\n<li>Check eligibility under the relevant section.<\/li>\n<li>File the prescribed form (Form 10-IB, 10-IC, 10-ID, 10-IF, or 10-IFA as applicable).<\/li>\n<li>Submit the form on or before the due date for filing the ITR.<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"Key_Takeaway_%E2%80%93_Alternative_Tax_Regimes_Available\"><\/span><span style=\"color: #000080;\">Key Takeaway &#8211; Alternative<\/span><span style=\"color: #000080;\">\u00a0Tax Regimes Available\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>These provisions allow eligible companies and co-operative societies to reduce their tax burden through concessional tax rates.<\/li>\n<li>However, in exchange, they must generally forgo various deductions, exemptions, and incentives available under the normal provisions of the income tax act.<\/li>\n<li>Before opting for any such regime, taxpayers should compare their tax liability under both the normal and concessional regimes.<\/li>\n<li>The Income-tax Act offers concessional tax regimes to eligible domestic companies and co-operative societies through Sections 115BAA, 115BAB, 115BAD, and 115BAE.<\/li>\n<li>While these regimes reduce tax rates significantly, taxpayers must generally surrender various deductions, exemptions, and incentives available under the normal tax provisions.<\/li>\n<li>Before opting for any concessional regime, taxpayers should compare their tax liability under both regimes to determine the most beneficial option.<\/li>\n<\/ul>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Alternative (lower) tax regimes are available to assessees other than individuals\/HUFs under the Income Tax Act. What does it mean? The Income Tax Act offers certain companies and co-operative societies the option to pay tax at concessional tax rates under special provisions. However, these regimes are not the default tax regime. An eligible taxpayer must &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10055,1],"tags":[10521],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/32743"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=32743"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/32743\/revisions"}],"predecessor-version":[{"id":32750,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/32743\/revisions\/32750"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=32743"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=32743"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=32743"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}