A Big relief to MSMEs- Budget 2023

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It is proposed to bring payments made to micro and small (MSME) businesses under the purview of section 43B of the Income Tax Act 1961.



The move is to encourage prompt payments to MSME businesses. 

As a result, expenditure can be claimed only when the payments are actually made to MSMEs. 

The expenditure can also be claimed on an accrual basis only if the payment is made within the time frame (Usually 45 days from the date of invoice) required by the Micro, Small and Medium Enterprises Development Act, 2006.


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