The Government, in order to provide a level playing field between cooperative societies and companies, proposes to reduce the Alternate Minimum Tax rate for cooperative societies to 15 percent from the current 18.5 percent announced by the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman while presenting the Union Budget 2022-23 in the Parliament today.
She added that the Government also proposes to reduce the surcharge on co-operative societies to 7 percent from 12 percent at present for those having a total income of more than Rs. 1 crore and up to Rs. 10 crores. She said that this would help enhance the income of cooperative societies and their members who are mostly from rural and farming communities.
In order to convert Pune-based Vamnicom into a full-fledged institution, a separate budget has been provided to Vamnicom in the Union Budget 2022-23, presented by the Union Finance Minister on Tuesday in Parliament.
Earlier its budgetary requirements were being met through the Grants-in-aid released to NCCT. Talking to Indian Cooperative Vamnicom Director Hema Yadav said, “For the first time, a separate budget has been allocated to our institution which is a welcome step. It has been possible only with the creation of a new ministry by the Central Government”.
It is to be noted that the government used to provide Rs 11 crore Grants-in-aid to Vamnicom to meet the establishment cost and other financial requirements and the fund was being routed through National Council for Cooperative Training (NCCT). But from next financial year, it will be directly given by the Ministry of Cooperation to Vamnicom.
Meanwhile, the Central Government has made a provision of 900 crores in the Union Budget and the special focus has been given for training, education, and digitalization of PACs.
Besides, Rs 274 cr has been provided for an Umbrella Scheme “Prosperity through Cooperatives” which would have a number of subcomponents with the aim of all-round development of cooperatives in the Country.
Similarly, Rs 10.90 crore has been allocated to the Central Registrar of Cooperative Societies while one crore has got one crore for Cooperation Credit Guarantee Fund.
The Budget has also made a provision of Rs 30 crore for Cooperative education whereas Rs 25 crore has been given for Cooperative Training.
Similarly, a total of Rs 274 crore has been provided for an Umbrella Scheme “Prosperity through Cooperatives” which would have a number of subcomponents with the aim of all-around development of cooperatives in the country.