Taxmann’s Analysis | 35 FAQs on Section 43B Disallowance of the Sum Payable to Micro or Small Enterprises
Taxmann’s Analysis | 35 FAQs on Section 43B Disallowance of the Sum Payable to Micro or Small Enterprises

Author: Taxmann

Publisher: Taxmann Publications Private Limited

Published: 2024-02-15

Total Pages: 26

ISBN-13:

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Section 43B of the Income-tax Act, 1961 provides a list of several expenses allowed as a deduction on a payment basis. Introduced by the Finance Act 2023, Section 43B(h) adds a new twist for businesses dealing with Micro and Small Enterprises (MSEs). Any sum payable to them beyond the time limit specified in the MSMED Act shall be allowed as a deduction in the previous year in which such sum is actually paid. This article provides frequently asked questions on Section 43B(h) and discusses the challenges it presents for businesses seeking to maintain smooth and compliant payment practices with MSEs.

Taxmann's Analysis | How to Report Disallowance Under Section 43B(h) in Form 3CD?
Taxmann's Analysis | How to Report Disallowance Under Section 43B(h) in Form 3CD?

Author: Taxmann

Publisher: Taxmann Publications Private Limited

Published: 2024-03-26

Total Pages: 16

ISBN-13:

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The article analyses the amendment made to Clause 26 of Form 3CD through CBDT Notification G.S.R. 155(E), dated 05-03-2024, in relation to Section 43B(h) concerning delayed payments to MSEs. It also provides the tax auditor's responsibilities in reporting amounts disallowable due to delayed payments to MSEs, including: ‣ Amendment made to Clause 26 of Form 3CD as regards Section 43B(h) ‣ Need/Rationale for the amendment ‣ Problems/issues with the amendment made to Clause 26 ‣ CBDT's Corrigendum ‣ Implications and Impact of the Corrigendum Notification ‣ Points to be kept in mind by the tax auditor for reporting in amended Clause 22