NEW DELHI: Finance Minister Nirmala Sitharaman announced during the presentation of the Union Budget 2022-23 in Parliament on Tuesday that the government intends to reduce the Alternate Minimum Tax rate for co-operative societies from 18.5 percent to 15 percent in order to provide a level playing field between them and companies.

She also stated that the government intends to lower the surcharge on co-operative societies from 12 percent to 7 percent for those with total revenue of more than Rs 1 crore but less than Rs 10 crore. She stated that this will help cooperative organisations and its members, who are largely from rural and farming communities, increase their income.

The minister stated that startups have emerged as economic growth drivers, and that in order to assist them during the Covid-19 pandemic, he proposed to extend the period for incorporating an eligible startup by one year, until March 31, 2023, in order to provide them with a tax incentive for three consecutive years out of ten years from incorporation. This incentive was previously only accessible to firms that were founded before March 31, 2022.

According to Sitharaman, the government offered a 15 percent tax break for select newly-incorporated domestic manufacturing enterprises in order to create a globally competitive business climate. The government wants to move the deadline for starting manufacture or production under Section 115BAB from March 31, 2023 to March 31, 2024.

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