On Wednesday, the government streamlined many tax breaks for MSMEs, cooperatives, startups, and boards, agencies, and commissions.
According to the Union Budget, which was submitted on Wednesday, the government increased the restrictions for microenterprises and professionals while retaining the benefits of presumed taxation. There is a deduction for payments made to MSMEs that is only permitted when payment is made.
In the case of cooperatives, the government extended 15% corporation tax breaks to new cooperatives that will begin production in March 2024.
The government established a higher limit of 2 lakh per member for cash deposits and loans made by the Primary Agricultural Credit Society (PACS) and Primary Cooperative Agriculture and Rural Development Banks (PCARDBs), as well as a higher limit of 3 crore for TDS on cash withdrawals made by cooperatives.
Union Finance Minister Nirmala Sitharaman revealed that the government intends to extend the date of incorporation for startups seeking income tax benefits from March 31, 2023 to March 31, 2024.
According to the budget, the government would also extend the benefit of carry-forwarding losses on changes in ownership of startups from seven to ten years after incorporation.
The revenue of authorities, boards, and commissions established by Union or state legislation is exempt from income tax in particular areas.
The government extended tax breaks for money transferred to IFSC, Gift City, until March 31, 2025.