New Delhi: The government on Wednesday simplified various tax benefits on MSMEs, cooperatives, startups, boards, authorities, and commissions.
According to the Union Budget presented on Wednesday, the government had raised the limit for micro-enterprises and professionals availing the benefit of presumptive taxation. Deduction on payment made to MSME is allowed only when the payment is made.
While for cooperatives, the government extended a 15% corporate tax benefit to new cooperatives that will start manufacturing in March 2024. The government had fixed a higher limit of Rs 2 lakh per member for deposits and loans in cash by Primary Agricultural Credit Society (PACS) and Primary Cooperative Agriculture and Rural Development Banks (PCARDBs) and a higher limit of Rs 3 crore for TDS on cash withdrawal for cooperatives.
Union Finance Minister Nirmala Sitharaman announced the government proposes to extend the date of incorporation for income tax benefits to startups from March 31, 2023, to March 31, 2024. As per the budget, the government also said that it will provide the benefit of carrying forward losses on changing the shareholding of startups from seven years of incorporation to 10 years.
Income of authorities, boards, and commissions established by Union or State laws to be exempt from income tax in certain areas.
The government had extended a period of tax benefits to funds relocating to IFSC, GIFT city till March 31, 2025.