India needs to put in place a holistic policy for SMEs
The rise in capital gains taxes and STT has much do with the recent caution by our regulators regarding the exuberance in the markets
The Budget provides special attention to MSMEs and manufacturing, particularly labour-intensive manufacturing, Nirmala Sitharaman said
Nitish Kumar, whose JD (U) is a key ally of the ruling NDA at the Centre, was asked about the Union government's statement in Parliament the day before.
According to Section 43B(h) of the Income Tax Act, introduced through the Finance Act 2023, if a larger company does not pay an MSME on time -- within 45 days in case of written agreements -- it cannot deduct that expense from its taxable income, leading to potentially higher taxes.
MSMEs contributes around 29 percent to the country’s gross value added and approximately 45 percent to its exports. However, these enterprises often struggle with receiving timely payments, which can lead to loan repayment defaults.
The industry body has called for an export promotion and development organisation to provide MSMEs with market intelligence, trade opportunities, and business-to-business (B2B) connections
Budget 2024 Expectations Highlights: The need for this interim Budget arises due to the imminent Lok Sabha elections this year. The comprehensive Budget for the financial year 2024-25 will be revealed once the new government is established following the general elections.