List of Central Co-operative Banks in West Bengal (All 17) with Districts, Addresses and Contact E-mails
04 Nov 2026
Quick answer
Income tax for co-operative societies: From 1 April 2026 co-operatives file under the Income-tax Act, 2025. The concepts are familiar – the co-operative deduction, the optional 22% regime, the higher cash-withdrawal threshold – but the section numbers have changed.
Key points
- The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026, with a single ‘tax year’.
- The co-operative deduction (old 80P) is reported to continue as Section 149.
- Normal slab rates: 10%/20%/30%; optional regime 22% + 10% surcharge + 4% cess.
- Cash withdrawals by co-operatives: TDS at 2% only above ₹3 crore (now Section 393(3)).
- Co-operative banks (other than PACS/PCARDBs) don't get the core 80P banking deduction.
Real problems and practical solutions
Problem 1: Credit society denied the co-operative deduction
What happens: Assessing officer says it's a ‘co-operative bank’.
Solution:
- The exclusion targets co-operative banks; primary credit societies lending to members have generally been allowed the deduction.
- Maintain clear member-only lending records.
Legal basis: Old s.80P(4)
Problem 2: TDS deducted on cash withdrawal
What happens: Bank deducted 2% on withdrawals below ₹3 crore.
Solution:
- Inform the bank that you are a co-operative society eligible for the ₹3 crore threshold; claim credit in the return.
Legal basis: Section 393(3) (old 194N)
Rates
| Regime | Rate | Notes |
|---|---|---|
| Normal | 10% (≤₹10,000); 20% (₹10,001–20,000); 30% above | Surcharge 7%/12% above ₹1 cr/₹10 cr; cess |
| Optional (old 115BAD) | 22% + 10% surcharge + 4% cess | No co-operative deduction; irrevocable |
| New manufacturing co-ops (old 115BAE) | 15% | Registered on/after 1 Apr 2023 and producing by 31 Mar 2024 |
Co-operative deduction
- 100% for income from banking/credit to members, cottage industries, marketing members' agricultural produce, supplying agricultural inputs, processing without power, collective labour, fishing, milk/oilseed/fruit/vegetable supply to federations, godown letting.
- Other income: ₹1 lakh for consumer co-operatives; ₹50,000 for others.
- Interest/dividends from investments in other co-operatives.
Housing societies
See the dedicated housing society tax guide.
Old vs new section numbers (as reported)
| Topic | Income-tax Act 1961 | Income-tax Act 2025 |
|---|---|---|
| Co-operative deduction | 80P | 149 (reported) |
| Cash withdrawal TDS | 194N | 393(3), Table 5.D |
| Optional regime for co-ops | 115BAD | Check mapping with CA |
| New manufacturing co-ops | 115BAE | Check mapping with CA |
Annual checklist
- Classify income: member vs non-member; eligible vs other.
- Decide regime (irrevocable).
- TDS compliance on payments.
- Cash-withdrawal threshold declaration to banks.
- File return by due date.
Related guides
- West Bengal State Co-operative Bank (WBSCB): History, Structure, Services, Loans and Deposit Safety
- List of Central Co-operative Banks in West Bengal (All 17) with Districts, Addresses and Contact E-mails
- PACS in West Bengal: What Primary Agricultural Credit Societies Do, How to Join, and Fixing Common Problems
Income tax for co-operative societies: frequently asked questions
Is 80P still available after 1 April 2026?
Commentators report it continues as Section 149 of the Income-tax Act, 2025.
What is the cash withdrawal TDS limit for co-operatives?
₹3 crore a year; TDS at 2% above that (now Section 393(3)).
Should a co-operative choose the 22% regime?
Only if its deductions are small; the choice is irrevocable.
Are co-operative banks eligible for 80P?
Not for the core banking deduction, except PACS and primary co-operative agricultural and rural development banks.
What are normal rates?
10%, 20% and 30% slabs with low thresholds, plus surcharge and cess.
Are co-operative societies taxed like companies?
No. Co-operatives have their own slab rates (10%/20%/30% with low thresholds) and an optional 22% regime; companies have different rates.
Is MAT/AMT payable by co-operatives?
Alternate Minimum Tax does not apply to co-operatives that opt for the 22% or 15% regimes, as the Income Tax Department explains.
Do co-operatives need to deduct TDS?
Yes, when making specified payments (contractors, professionals, salaries) above thresholds, like other deductors.
Is interest paid to members taxable in members' hands?
Generally yes; members report interest received as income. TDS rules for interest paid by co-operatives depend on the type of society and payment.
Sources and review
- Wikipedia – Income-tax Act, 2025
- Taxation of co-operative societies under the Income Tax Act, 2025
- Taxmann – taxation of co-operatives in India
- Income Tax Dept – special regimes for co-operative societies
- TDSMAN – TDS on cash withdrawals, Section 393(3) (formerly 194N)
Facts checked against the sources listed on 29 October 2026.
Next step: read the COOPMAN step-by-step guides, or keep your society's records in order with COOPMAN.
