Question
If an MSME moves to a higher category due to
reclassification, for how many years can it continue to avail benefits of the previous category (non-tax benefits)?Solution
According to the MSME reclassification guidelines, an MSME that shifts to a higher category can continue to avail non-tax benefits of its previous classification for 3 years from the date of such upward change. This provides a smooth transition and prevents disruption in ongoing support programs.
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