New income tax provision mandating 45-day payments hurts MSMEs: Will Union Budget 2024-25 offer relief?
A new provision in the Income Tax Act that mandates payments to MSMEs within 45 days has caused unanticipated pain for small businesses. Will the Union Budget 2024-25 fix this problem?
Surabhi
and
Palak Agarwal
Print Edition: Jul 21, 2024
A new provision in the Income Tax Act that mandates payments to MSMEs within 45 days has caused unanticipated pain for small businesses. Will the Union Budget 2024-25 fix this problem?
Sometimes the most helpful of things can have an unintentional fallout. Take the 45-day payment rule for MSMEs for instance. With preparation underway for the Union Budget 2024-25, finance ministry officials are trying to understand the unintended impact of the new provision under the Income Tax Act that mandates payments to micro, small and medium enterprises (MSMEs) within a 45-day time period. According to sources, some relief may be on the cards to ensure that payments are not tied up to the 45-day window.
