Quick Summary
In the Union Budget 2024-25, Finance Minister Smt. Nirmala Sitharaman has addressed the central governments controversial 45-day payment rule by announcing a new fund in collaboration with banks to support India's cash-strapped micro, small, and medium enterprises (MSMEs). This initiative aims to al
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FAQ :
A new fund has been established in collaboration with banks to support MSMEs facing financial strain due to delayed payments.
The 45-day payment rule, under Section 43B(h) of the Income Tax Act 1961, mandates that traders must pay MSME units within 45 days of purchase to retain certain tax deductions.
No, the Union Budget 2024-25 did not address or change the 45-day payment rule, despite concerns raised by MSME associations.
MSME associations have expressed concerns about potential contract cancellations and additional tax burdens on suppliers due to the rule.
The budget also announced the Anusandhan National Research Fund to foster R&D and highlighted Bengaluru's role in expanding digital public infrastructure.
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