Sunday, July 21, 2024
Home » MSME » Section 43B of Income Tax Act: Expenses businesses can cover apart from payment to MSMEs

Section 43B of Income Tax Act: Expenses businesses can cover apart from payment to MSMEs

May 10, 2024
MSME
0

Hey, like this? Why not share it with a buddy?

Other than clause H, there are seven other clauses — a list of expenses allowed as deductions under the heading ‘Income from Business and Profession’ — under Section 43B for businesses and professionals while computing their taxable income. A section of MSMEs and traders in India is expecting the revision or revocation of the new clause H brought under Section 43B of the Income Tax Act, 1961 by the Government to address the delayed payment issue of MSMEs.

The concern among certain MSMEs in textiles and exports and traders is around the new clause that disallows expenses to their buyers on invoices unless paid within 45 days (where agreement exists) and within 15 days if there is no agreement. The expenses “shall be allowed only in computing the income referred to in section 28 of that previous year in which such sum is actually paid” the Act said. Expenses towards employees’ welfare fund, provident fund, gratuity fund, etc. are allowed under the Act.

Source : https://www.financialexpress.com/business/sme/section-43b-of-income-tax-act-expenses-businesses-can-cover-apart-from-payment-to-msmes/3483290/

Related Posts

Reader / Viewer discretion and disclaimer :
The information provided on SME e-News (www.smeenews.com) website is intended for general informational purposes only. While we strive to provide accurate and up-to-date information, we cannot guarantee the accuracy, completeness, or reliability of the content. The views and opinions expressed in the articles and posts on this website are those of the authors and do not necessarily reflect the official policy or position of SME-e-News website. Readers are advised to independently verify any information found on this website before making decisions based on it. We do not endorse, represent, or warrant the accuracy or reliability of any third-party content linked on this site. Furthermore, SME e-News (www.smeenews.com) website shall not be held liable for any errors, omissions, or delays in the information provided, nor for any losses, injuries, or damages arising from its display or use. Please note that the content on SME e-News (www.smeenews.com) website may be subject to change without notice.