Pravasi Samvad Surat Bureau
February 11, 2026
The government has cut the income tax surcharge for co‑operative societies by five percent from 12% to 7%, according to a Press Information Bureau (PIB) report Wednesday.
The federal Home and Co-operation Minister Amit Shah shared this information in a written reply in the Rajya Sabha, PIB said.
The new rate applies to societies that earn between ₹1 crore and ₹10 crore from the financial year 2022–23.
Co‑operative societies play a steady role in India’s local economy. They bring people together to run businesses that serve shared needs, Pravasi Samvad’s Sudeep R P Sonawane adds.
Many of them work in farming, credit, housing, dairy, and small industries. They help members pool money, share risks, and earn fair returns.
These societies often support people in rural areas who struggle to access banks or markets on their own. They also create local jobs and keep profits within the community instead of sending them to large companies.
When the government reduces taxes for co‑operatives, it gives them more room to grow, modernise, and support their members. This helps strengthen local economies and encourages people to work together for common goals.
