A manufacturing co-operative society is set up and registered on 10 April 2024 and begins manufacturing in June 2024. Can it opt for the concessional regime for new manufacturing co-operative…
Question and options
A manufacturing co-operative society is set up and registered on 10 April 2024 and begins manufacturing in June 2024. Can it opt for the concessional regime for new manufacturing co-operative societies in section 204 of the Income-tax Act, 2025?
No, because it did not begin manufacturing on or before 31 March 2024
Yes, because it began manufacturing within a year of registration
Yes, because it was set up and registered after 1 April 2023
No, because the regime is limited to societies registered before 1 April 2023
Answer and explanation
Section 204(1) of the Income-tax Act, 2025 allows the 15% regime only to a co-operative society set up and registered on or after 1 April 2023 that commenced manufacture or production on or before 31 March 2024. This society meets the registration condition, but it began manufacturing in June 2024, after the cut-off; the registration date is a starting point, not a deadline.
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