Breaking: FinMin may postpone Section 43B(h) by 1 year

The Finance Minister Nirmala Sitharaman may postpone Section 43B(h) by 1 year.

FinMin may postpone Section 43B(h)

Reetu | Mar 4, 2024 |

Breaking: FinMin may postpone Section 43B(h) by 1 year

Breaking: FinMin may postpone Section 43B(h) by 1 year

The Finance Minister Nirmala Sitharaman may postpone Section 43B(h) by 1 year.

Finance Ministry is considering deferring the application of Rule 43B (h) of the Income Tax Act, which requires payments to micro, small, and medium-sized enterprises (MSMEs) within 45 days, according to sources.

The proposed postponement is scheduled to last a full financial year, with the rule set to take effect on April 1, 2025, sources said. The Finance Act of 2023, which revised the Income Tax Act, added clause (h) to Section 43B to ensure timely payments to MSMEs.

The amendment established a 45-day deadline for the assessee to make payments. Failure to comply with this timeframe would result in pending payments being regarded as income and taxed.

The decision to modify the implementation timeframe comes in response to many industry representations filed to the finance ministry. Various sectors raised concern about the shortened payment cycle, claiming that it disrupts customary norms and has already resulted in order cancellations.

In their submissions to the finance ministry, industry associations have suggested potential changes to the act or a short postponement to give firms more time to adjust.

The Ministry of MSME contacted different SME groups to request feedback on this topic on February 16. According to sources, the SME organizations have been requested to submit views by February 19.

Source: CNBCTV

StudyCafe Membership

Join StudyCafe Membership. For More details about Membership Click Join Membership Button
Join Membership

In case of any Doubt regarding Membership you can mail us at [email protected]

Join Studycafe's WhatsApp Group or Telegram Channel for Latest Updates on Government Job, Sarkari Naukri, Private Jobs, Income Tax, GST, Companies Act, Judgements and CA, CS, ICWA, and MUCH MORE!"




Author Bio
My Recent Articles
Income Tax Department sets April 30 as deadline for approving pending Refunds Government’s 59 minute Loan Portal sanctions more than Rs.86,500 crore Bank Holidays May 2024; Check the Full List Here 19% TDS might have to be paid by Property buyer out of his own pocket for this PAN related issue NFRA imposes penalty of Rs.4.5 Cr on CA and CA Firm Auditors of Reliance CapitalView All Posts