here is a list of Top Tax Benefits for MSME or Small #Businesses
1)#Income #Tax #Exemption
exemption is available to businesses under Section #80J of the Income Tax Act.
2)#Tax Holiday
This tax exemption is available to MSMEs that produce products like mineral oil, natural gas, and fertilisers under Section 80-IB.
3)Reduced Tax #Rates
can claim a reduced tax rate of 25% under Section 115BA
4)GST Benefits
annual turnover of more than ₹1.5 Crores can benefit from the Composition Scheme under the Goods and Services Tax
5)#Capital #Gains #Exemption
under Section 54GB if the MSME invests its capital gains from the sale of a long-term asset in the equity shares of a qualified startup.
6)#Investment Allowance
invest in plant and machinery/equipment can claim an investment allowance of 15% under Section 32AC
New developments in MSME taxes
1)#Presumptive #Taxation #Scheme
presumptive taxation scheme have been increased from ₹2 crores to ₹3 crores to promote non-cash transactions and ease compliance
2)#Set off and carry #forward –
Section 79 of the Income Tax Act was amended by the 2023 budget for relief of carry forward and set off of losses
3) #Cooperative #societies
Concessional Tax for New Manufacturing Cooperative society @15%
4)#Extension of Incorporation Period for Startups for Tax Exemption
5) #Amortisation
Amortisation Deduction Claims for Preliminary Expenses
6) #Payments to #MSMEs
Section #43b(h) now includes payments made to MSMEs. Timely Payments to MSMEs through Income Tax Act Amendment
CA Laxman Dabholkar #MSME #Tax #Startups #Strategy #Business #India
