Nagpur :- CAIT, in its ongoing efforts to address concerns regarding Income Tax Law 43(B)H among traders nationwide, including in Delhi, today engaged with Union Finance Minister Nirmala Sitharaman. CAIT Secretary General Praveen Khandelwal conveyed the traders’ concerns and suggested a solution during the meeting.
Khandelwal acknowledged the government’s progressive move in introducing this provision in the Income Tax Act, which aims to enhance financial liquidity for micro and small enterprises (MSMEs). However, he emphasized the need for greater awareness among traders about this beneficial provision and proposed a one-year postponement of its implementation. This delay, he argued, would allow traders ample time to understand and comply with the law smoothly.
Sitharaman attentively listened to the concerns raised by Khandelwal and assured a holistic consideration of the matter.
In its memorandum, CAIT welcomed the government’s decision, highlighting the significance of ensuring timely payments to the MSME sector within 45 days to maintain uninterrupted cash flow for traders. However, given the lack of clarity surrounding the applicability of the law to traders and other related provisions, CAIT called for the suspension of its implementation until sufficient clarification and information dissemination are achieved nationwide.
CAIT further appealed to the government to postpone the implementation of this law from April 1, 2024, to April 1, 2025, to provide traders with a one-year deferral period.
Both CAIT National President B C Bhartia and Secretary General Praveen Khandelwal reiterated the importance of addressing the financial challenges faced by the MSME sector. They emphasized the need to clarify ambiguous provisions and enhance awareness among traders through collaborative efforts involving the Income Tax Department, the Ministry of MSMEs, and trade organizations.
