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% |
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.
Health and Education Cess (HEC)
- A 4% cess is levied on the total of income tax and surcharge.
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.