What was the key amendment made to Section 43B of the Income-tax Act, 1961 in April 2024?

In April 2024, a new clause (h) was added to Section 43B of the Income-tax Act, 1961. This clause mandates that any payment due to micro or small enterprises (MSEs) beyond 45 days will be allowed as a tax deduction only when the payment is actually made. The purpose of this change is to: • Ensure timely payments to MSEs, • Address cash flow challenges faced by small businesses, and • Encourage buyers to settle dues promptly, thereby improving the overall financial health of the sector. This move strengthens compliance and offers a safeguard for MSEs against delayed receivables.