Income-tax Act, 1961Section 80P
- 80P: deductions for credit, marketing, processing co-operatives, etc.
- 115BAD: optional 22% rate for resident co-operatives without deductions
Applies to FY 2025-26 (AY 2026-27) and earlier years.
IT Act 1961 → 2025 / Section 80P
DeductionsSection 80P → Section 149
Deductions for co-operative societies and the 22% option
Section 80P of the old Income-tax Act, 1961 · new section 149 under the Income-tax Act, 2025
New reference Section 149 (115BAD → 203)
Income-tax Act, 2025Section 149 (115BAD → 203)
- Co-operative deductions: section 149
- Optional 22% regime: section 203
- New manufacturing co-operatives (old 115BAE): sections 204–205
Applies from tax year 2026-27 (from 1 April 2026).
What changed
Renumbered, with Finance Act 2026 changes: cotton seed and cattle feed added to primary society supplies (149(2)(b)); inter-co-operative dividend/interest clause recast (149(2)(d)); a new section 150 deduction for federal co-operatives; and co-operatives in the 22% regime may claim the inter-co-operative dividend deduction to the extent passed on to members (203(7)).
Practice notes
- Co-operative banks continue to have restricted 80P-type benefits.
Frequently asked
What is 80P called in the new Income Tax Act 2025?
Section 149; the 22% co-operative regime (old 115BAD) is section 203.
What is section 80P called in the new Income-tax Act, 2025?
Section 80P of the Income-tax Act, 1961 corresponds to Section 149 (115BAD → 203) of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).
What changed in section 80P under the new Income Tax Act?
Renumbered, with Finance Act 2026 changes: cotton seed and cattle feed added to primary society supplies (149(2)(b)); inter-co-operative dividend/interest clause recast (149(2)(d)); a new section 150 deduction for federal co-operatives; and co-operatives in the 22% regime may claim the inter-co-operative dividend deduction to the extent passed on to members (203(7)).
Is section 80P still applicable for FY 2025-26?
Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 80P of the 1961 Act. Section 149 (115BAD → 203) of the 2025 Act applies from tax year 2026-27.