Tax on Income of certain Resident Co-operative societies - Section 115BAD - Income Tax - Ready Reckoner - Income Tax

Section 115BAD ; Tax on Income of certain Resident Co-operative societies w.e.f. 01st April 2021 ( Added by FA 2020 ) Assessee should be Resident Co-operative Society other than those opting to tax under Section 115BAE . Income under s ection 115BAD shall be taxable @22%. Special Income under section 111A, 112 , 112A shall be taxable @ Special rates. Surcharge rate will be 10% irrespective of total Income. Assessee opting for section 115BAD shall not be required to pay AMT. Brought forward AMT credit cannot be utilized against income, u/s 115BAD. Therefore, if assessee has b/f AMT credit, it should first exhaust the AMT credit and thereafter opt for sec 115BAD in a subsequent PY. Certain Restrictions [ Section 115BAD(2) ] Assessee should not claim following deductions Section 10AA : Deductions from the Special Economic Zones (SEZ) unit. Section 32(1)(iia) : Additional Depreciation Section 32AD : Expenditure that is allocated on machinery and new plants manufactured in the notified backward areas in the states of Bihar, West Bengal, Telangana and Andhra Pradesh. Section 33AB : Deduction given on rubber manufacturing, tea and coffee. Section 33ABA: Deposits made to the site restoration fund by the companies producing or extracting petroleum and natural gas in India. Section 35(1)(ii), (iia) , (iii), 35(2AA) Scientific Research Section 35AD : Capital spent by any particular business. Section 35CCC : Investment in agriculture extension projects. Any deduction in respect of certain income under chapter VI-A except Section 80JJAA , 80LA In case of a person, having a Unit in the International Financial Services Centre, as referred to in section 80LA(1A) , which has exercised option under sub-section 115BAD(5), the conditions contained in section 115BAD(2) shall be modified to the extent that the deduction under the said section shall be available to such Unit subject to fulfilment of the conditions contained in that section. [ Section 115BAD(4) ] It cannot setoff any B/F loss or unabsorbed depreciation which is attributable to deduction referred above. [ read with section 115BAD(3) ] If the above conditions are not satisfied in any PY the option will be invalid for that PY and subsequent PYs and normal provisions of the Act shall apply. Laps the loss and depreciation [ Section 115BAD(3) ] The loss and depreciation referred to in clause (ii) of section 115BAD(2) shall be deemed to have been given full effect to and no further deduction for such loss or depreciation shall be allowed for any subsequent year; Exception where there is a depreciation allowance in respect of a block of assets which has not been given full effect to prior to the assessment year beginning on the 1st day of April, 2021, corresponding adjustment shall be made to the written down value of such block of assets as on the 1st day of April, 2020 in such manner as may be prescribed, if the option under section 115BAD(5) is exercised for a previous year relevant to the assessment year beginning on the 1st day of April, 2021. Section 115BAD(5) Nothing contained in this section shall apply unless option is exercised by the person in such manner as may be prescribed on or before the due date specified under section 139(1) for furnishing the return of income for any previous year relevant to the assessment year commencing on or after the 1st day of April, 2021 in in FORM 10-IF . ( Rule 21AH of Income Tax Rules) Once the option has been exercised for any previous year, it cannot be subsequently withdrawn for the same or any other previous year. The beneficial provisions of this section apply only if the option exercised in FORM 10-IF .