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May 29, 2024 FM hints at reconsidering 45-day payment rule for MSMEs

Income Tax

Finance Minister Nirmala Sitharaman on May 28 hinted at the possibility of the government reconsidering changes made to the income tax rules mandating payments to micro, small and medium enterprises (MSMEs) within 45 days, failing which companies will have to pay tax on the amount due. This mandate came into effect on April 1, 2024. She urged MSMEs to send representations on the same, adding that the government will "surely do something about it in the July Budget." Speaking at an event in Ludhiana, Punjab, Sitharaman said the changes mandating the 45-day payment window was introduced as per requests from MSMEs themselves.

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