Income Tax Rates for Co-operative Societies for AY 2025–26 and AY 2026–27

Income Tax Slabs

The applic­a­ble slab rates for a co-oper­a­tive soci­ety are as follows:

Total Income	Rate of Income Tax
Up to ₹10,000	10%
₹10,001 to ₹20,000	20%
Above ₹20,000	30%

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Sur­charge

A sur­charge on income tax is levied based on the total income, sub­ject to mar­gin­al relief:

• 7% of income tax is applic­a­ble if total income exceeds ₹1 crore but does not exceed ₹10 crore.
• 12% of income tax is applic­a­ble if total income exceeds ₹10 crore.

Mar­gin­al Relief Pro­vi­sions:

• If income exceeds ₹1 crore, the total tax lia­bil­i­ty (includ­ing sur­charge) shall not exceed the tax payable on ₹1 crore by more than the excess income over ₹1 crore.
• Sim­i­lar­ly, if income exceeds ₹10 crore, the tax (includ­ing sur­charge) shall not exceed the tax on ₹10 crore by more than the excess over ₹10 crore.

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Health and Edu­ca­tion Cess (HEC)

• A 4% cess is levied on the total of income tax and surcharge.

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Min­i­mum Alter­nate Tax (MAT) under Sec­tion 115JC

• A co-oper­a­tive soci­ety is required to pay a min­i­mum tax of 15% of its adjust­ed total income, increased by applic­a­ble sur­charge and health & edu­ca­tion cess.
• This pro­vi­sion ensures that tax payable does not fall below a pre­scribed thresh­old, even if the reg­u­lar com­pu­ta­tion results in low­er liability.