Question

    According to Union Budget 2023-24, consider the

    following statements regarding MSMEs: 1. Medium enterprises with turnover up to Rs 2 crore and certain professionals with turnover of up to Rs50 lakh can        avail the benefit of presumptive taxation. 2. It is proposed to provide enhanced limits of Rs 3 crore and Rs 75 lakh respectively, to the taxpayers whose cash            receipts are no more than 5 percent.  3. It is proposed to allow deduction for expenditure incurred on payments made to them only when payment is                  actually made.  Choose the correct option using the codes below:
    A 1 only Correct Answer Incorrect Answer
    B 1 and 2 only Correct Answer Incorrect Answer
    C 2 and 3 only Correct Answer Incorrect Answer
    D 1 and 3 only Correct Answer Incorrect Answer
    E 1, 2 and 3 Correct Answer Incorrect Answer

    Solution

    MSMEs are growth engines of our economy.  Micro enterprises with turnover up to ` 2 crore and certain professionals with turnover of up to  `50 lakh can avail the benefit of presumptive taxation. I propose to provide enhanced limits of ` 3 crore and ` 75 lakh respectively, to the taxpayers whose cash receipts are no more than 5 per cent. Moreover, to support MSMEs in timely receipt of payments, I propose to allow deduction for expenditure incurred on payments made to them only when payment is actually made. 

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