In a significant relief for the cooperative sector, the Government has reduced the surcharge on Income Tax for cooperative societies earning between Rs 1 crore and Rs 10 crore. The surcharge has been brought down from 12 per cent to 7 per cent with effect from the financial year 2022–23.
The announcement was made by Union Minister for Home and Cooperation Amit Shah in a written reply in the Rajya Sabha on Wednesday.
The move is expected to ease the tax burden on medium-sized cooperative societies and improve their retained earnings, enabling them to reinvest in business expansion, member services and infrastructure. Sector experts believe the reduction will strengthen liquidity among cooperatives operating in agriculture, dairy, housing, credit and other community-based enterprises.
The tax rationalisation forms part of the broader push by the Ministry of Cooperation to create a more enabling policy environment for cooperatives. By lowering surcharge rates, the government aims to enhance the competitiveness of cooperative institutions and support their role in inclusive economic growth and grassroots development.
