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Promoting entrepreneurship
from Taxmann's Budget Marathon | Corporate Taxation | E N Dwaraknath & Tapan Gupta – Partner | PwC
by Taxmann
Start-ups taxation
• Protection to carry forward and set off of losses in case of change in shareholding by more than 51% is extended from seven to ten years from incorporation – Amendment to align 10 years period as prescribed under the start-up tax holiday provisions.
• Timelines for incorporation of eligible startups to claim tax holiday extended by one year to March 31, 2024
MSME Expenditure – allowed on payment basis
• Any sum payable to micro and small enterprises allowable only on payment basis (applicable from FY 23-24)
• It is proposed to allow payments to MSMEs beyond the time limit specified in the MSME Act, 2006 on actual payment basis. If the payment is made after the end of the previous year, it is to be allowed only in the subsequent year even if it is paid before the due date of filing the tax return of the previous year.
• However, expenses paid within the statutory due dates as prescribed under the MSME laws can still be claimed on an accrual basis.
