Quick Summary
A recent alteration in the Income Tax Act, aimed at bolstering small businesses by ensuring timely payments, might have inadvertently deterred potential buyers from engaging with them. Sources familiar with government discussions hint at a possible revision in the Act during the forthcoming FY25 ful
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Community
- Daily E-Newsletter
- Unlimited News Access
- Profile Visitors
- Link Social Profiles
- Featured Job Posts
- Pro Badge
- Expert GST Guidance
- Unlimited Forum Replies
- Download Content in PDF
BEST VALUE
2 YEAR PLAN
3,499
(Excl. of GST ₹629)
1 YEAR PLAN
1,999
(Excl. of GST ₹359)
3 MONTHS PLAN
999
(Excl of GST ₹179)
View all CCI PRO benfits
Already a PRO member? Login here for an ad-free experience.
FAQ :
The amendment requires businesses to pay MSMEs within a certain timeframe to claim tax deductions in the same financial year. This has led to concerns that larger companies might avoid dealing with MSMEs to bypass this rule.
Potential revisions to the Income Tax Act are expected to be part of the full budget session in July for FY25.
Sources suggest that Clause H of Section 43B of the Income Tax Act, introduced under the Finance Act of 2023, might be revised or eliminated.
The clause was intended to help MSMEs by ensuring they receive timely payments and alleviating their liquidity challenges.
Buyers could face increased tax liabilities in the fiscal year of delay and potential profit reductions when payment is eventually made.
The MSMED Act defines timely payments as 15 days, extendable up to 45 days through contractual agreements.
CAclubindia
