Section 115BAD → Section 118
Tax on income of certain resident co-operative societies (22% Regime)
Quick Answer
Section 115BAD of the Income Tax Act, 1961 (Tax on income of certain resident co-operative societies (22% Regime)) corresponds to Section 118 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 115BAD
Under the Income Tax Act, 1961, Section 115BAD governs tax on income of certain resident co-operative societies (22% regime). Parity provision allowing co-operative societies to opt for a flat 22% tax rate if they forego specified deductions.
From 1st April 2026, the same subject sits at Section 118 of the Income-tax Act, 2025 — retained and renumbered as Section 118 of the Income-tax Act, 2025. Retained. Brings co-operative societies on par with domestic companies under Section 115BAA.
For Section 115BAD, the practical impact is rated Medium. Crucial for large state-level co-operative federations.
Sec 115BAD
Provision Summary
Parity provision allowing co-operative societies to opt for a flat 22% tax rate if they forego specified deductions.
Sec 118
Provision Summary
Retained. Brings co-operative societies on par with domestic companies under Section 115BAA.
Key Changes & Highlights
- Opt-in process simplified.
Frequently Asked Questions
What is Section 115BAD of the Income Tax Act, 1961 about?
Section 115BAD of the Income Tax Act, 1961 covers tax on income of certain resident co-operative societies (22% regime). Parity provision allowing co-operative societies to opt for a flat 22% tax rate if they forego specified deductions.
Which section replaces Section 115BAD in the Income-tax Act, 2025?
Section 115BAD of the Income Tax Act, 1961 maps to Section 118 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Brings co-operative societies on par with domestic companies under Section 115BAA.
What is the impact of the change to Section 115BAD under the new tax code?
The transition impact for Section 115BAD is rated Medium. Crucial for large state-level co-operative federations.
What should I watch out for when Section 115BAD moves to the 2025 code?
Opt-in process simplified. These points are specific to Section 115BAD (Tax on income of certain resident co-operative societies (22% Regime)).
Disclaimer: This mapping of Section 115BAD (Tax on income of certain resident co-operative societies (22% Regime)) to Section 118 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 115BAD is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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