Explanation
Section 115BAD, introduced by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act 2020, provides a concessional tax regime for co-operative societies. The base rate is 22%, to which a 10% surcharge and 4% cess are added, yielding an effective rate of 25.17% — the same as §115BAA for companies. Alternative Minimum Tax (AMT) under §115JC does not apply to societies that opt into §115BAD. The society must forego deductions under §80IB, §80IC, and §80P to be eligible. Unlike individual regimes, there is no specific form prescribed — the option is exercised by simply choosing this regime while filing the income tax return for the relevant year. Once opted, the society cannot exit the regime in subsequent years. Societies that have large deductions available under §80P should model both options before opting in, since the benefit of §80P can exceed the tax rate saving. Verify on the income-tax portal before filing.