CS Professional · Advanced Direct Tax Laws and Practice · Computation of Total Income, Tax Liability and Filing of Returns of various Entities excluding Companies
Under the Income-tax Act, 2025 (applicable from the June 2027 session), a resident co-operative society engaged in manufacture opts for the concessional regime for new manufacturing co-operative societies (section 204). Which of the following is a condition for the option to be valid?
The society must be registered on or after 1 April 2023 and must have commenced manufacturing or production on or before 31 March 2024. It must also be resident, engaged in manufacture, and exercise the option properly. Earlier registration or later commencement disqualifies it.
- AIt must have been set up and registered on or after 1 April 2023 and commenced manufacturing or production on or before 31 March 2024Correct
- BIt must have been set up and registered before 1 April 2023 and commenced manufacturing on or before 31 March 2024
- CIt must have been registered on or after 1 April 2023 and commenced manufacturing on or after 1 April 2024
- DIt must be engaged in any business, whether or not manufacturing, provided it is registered on or after 1 April 2023
Explanation
Section 204 requires the society to be resident in India, engaged in manufacture or production, set up and registered on or after 1 April 2023, and to have commenced manufacturing or production on or before 31 March 2024. Options with an earlier registration date or a later commencement date contradict these conditions. Non-manufacturing societies are not covered.
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