New Delhi, Feb 1 (TIWN): In order to provide a level playing field between the co-operative societies and companies, the government proposes to reduce the Alternate Minimum Tax rate for co-operative societies to 15 per cent from the current 18.5 per cent, Finance Minister Nirmala Sitharaman announced while presenting the Union Budget 2022-23 in the Parliament on Tuesday.

She added that the government also proposes to reduce the surcharge on co-operative societies to 7 per cent from 12 per cent at present for those having total income of more than Rs 1 crore and up to Rs 10 crore. She said that this would help enhance the income of cooperative societies and its members, who are mostly from rural and farming communities.  Stating that startups have emerged as drivers of growth for the economy, the minister, in order to assist them during the Covid-19 pandemic, proposed to extend the period for incorporation of the eligible startup by one more year up to March 31, 2023 to provide them tax incentive for three consecutive years out of 10 years from incorporation. This incentive was earlier available to eligible startups established before March 31, 2022.