Income Tax Filing for Co-operative Society – Step-by-Step

What Is Income Tax for a Co-operative Society?

A Co-operative Society is an entity registered under the Co-operative Societies Act and treated as a separate taxable person under the Income Tax Act, 1961. Every co-operative society is required to file an Income Tax Return (ITR) annually, irrespective of profit or loss.

Income tax is calculated on the net taxable income of the society after allowing eligible deductions, exemptions, and expenses as per law.

Is Income Tax Filing Mandatory for Co-operative Societies?

Yes, income tax return filing is mandatory for:

Credit co-operative societies
Housing co-operative societies
Consumer co-operative societies
Agricultural and non-agricultural co-operative societies

Even if:

There is no taxable income
Income is exempt or eligible for deductions

Non-filing can result in penalties, interest, and loss of deduction benefits.

Tax Rate Applicable to Co-operative Societies

Up to ₹10,000 – 10%
₹10,001 to ₹20,000 – 20%
Above ₹20,000 – 30%
Health & Education Cess – 4%

(Some co-operative societies may opt for concessional tax regimes, subject to conditions.)

Applicable ITR Form for Co-operative Society

ITR-5 is mandatory for all co-operative societies

ITR-5 applies whether the society is:

Profitable
Loss-making
Under audit

Documents Required for Filing Income Tax – Co-operative Society

PAN of the co-operative society
Registration certificate
Bye-laws of the society
Financial statements (P&L, Balance Sheet)
Audit report (if applicable)
Bank statements
TDS details (Form 26AS)
Details of deductions claimed

Step-by-Step Process for Filing Income Tax – Co-operative Society

Step 1: Prepare Financial Statements

Prepare:

Profit & Loss Account
Balance Sheet

Ensure:

Income and expenses are properly classified
Member-related transactions are clearly recorded

Step 2: Check Tax Audit Applicability

Tax audit is mandatory if:

Turnover exceeds prescribed limits
Audit is required under the Co-operative Societies Act

Audit report must be completed before filing ITR.

Step 3: Compute Taxable Income

Start with net surplus as per P&L
Add disallowed expenses
Deduct eligible deductions (e.g., Section 80P, if applicable)
Arrive at taxable income

Step 4: Login to Income Tax Portal

Login using society’s PAN
Select “File Income Tax Return”
Choose the relevant Assessment Year

Step 5: Fill ITR-5 Details

Enter:

Society details
Nature of activities
Income details
Balance sheet & P&L figures
Tax computation

Accuracy is crucial to avoid scrutiny.

Step 6: Pay Tax (If Applicable)

Pay advance tax or self-assessment tax
Enter challan details in the return

Step 7: Submit Income Tax Return

Validate all entries
Submit ITR-5 online

Step 8: Verify the ITR

Verify using Digital Signature Certificate (DSC) or EVC

⚠️ Return is invalid without verification.

Important Due Dates for Co-operative Society ITR

31st July – Non-audit cases
31st October – Audit cases

(Due dates may change as per government notifications.)

Common Mistakes to Avoid

Filing incorrect ITR form
Missing Section 80P deduction eligibility
Mismatch with audit report or Form 26AS
Late filing leading to penalties
Not verifying the return

Benefits of Filing Income Tax Return for Co-operative Society

Statutory compliance
Claim eligible deductions and exemptions
Carry forward losses
Better credibility with banks & regulators
Avoid penalties and legal notices

Why Choose Saving Mantra for Co-operative Society ITR Filing?

Expert CA-assisted filing
Accurate Section 80P deduction handling
Audit and non-audit support
Error-free ITR-5 preparation
End-to-end compliance management

Disclaimer

This blog is for informational purposes only and does not constitute legal or tax advice. Income tax provisions applicable to co-operative societies are subject to amendments and depend on individual circumstances. Saving Mantra recommends consulting a qualified tax professional before filing income tax returns.

Income Tax Filing for Co-operative Society – Guide