Question

As per the Finance Act 2023, what is the key stipulation

Q: Answer-As per the Finance Act 2023, what is the key stipulation introduced in Section 43B(h) of the Income...

Section 43Bh stipulates that if payments owed to MSMEs are not settled within 45 days, they will not qualify for tax deductions under the Income Tax Act until the payment is made. This is aimed at encouraging timely payments to MSMEs.

introduced in Section 43B(h) of the Income Tax Act regarding payments to MSMEs?

A Payments owed to MSMEs must be settled within 30 days to qualify for tax deductions

B Payments to MSMEs will not qualify for tax deductions if they remain unpaid after 45 days

C Payments owed to MSMEs will be automatically exempt from tax deductions after 45 days

D Only purchases of goods from MSMEs are affected by the 45-day settlement rule

E Larger entities will receive tax deductions for overdue payments to MSMEs

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As per the Finance Act 2023, what is the key stipulation

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