Most of the contributors to India’s economy are the Micro, Small, and Medium Enterprises (MSME) sector along with Indian Startups being the prime contributors. All of these would sum up greater potential for the manufacturing, services, and export industries and provide employment in the country. As this becomes essential for these businesses to know the tax compliance as the same would affect their processes in some way.
The tax expert mentioned that if the developments revealed in 2021 are the sign of the future then the Indian start-ups and Micro, Small, and Medium Enterprises appear to be progressing on the right back. “The government has also shown its support towards startups by introducing timely reforms on the tax and regulatory front along with supporting the MSMEs making their registrations filling easier.”
Let’s see several compliance and regulations for the MSMEs and startups
- The tax complaints assist the businesses to provide transparency on the tax implications in the finances. A startup post to obtain recognition might be applied for the tax exemption under section 80 IAC of the Income Tax Act.
- The startups made in the period of April 2016- March 2022 would be qualified to claim the income tax exemption for the three consecutive years out of 10 years, after its start and they should use the form 10CCB to file their audit report including with their income tax report.
- The e-commerce operators would be needed to charge the (TDS) Tax Deducted at Source with the 0.75% rate during filing the payments to the local e-commerce users as the portion of the execution of the new tax scheme under section 194-O of the Finance act 2020.
- An act to impose, manage, collect and reclaim the income tax in India would be called the income tax act 1961. The income tax would be subject to be paid at 22% for any former year related to the assessment year starting on or after April 1, 2020, on the individual’s income and the company is domestic.
- The budget for 2022-23 was addressed on the date February 1, along with the proposal to prolong the availability of the corporation tax rate reduction for the newly made industrial units for the other year or until March 2024.
- Since the government wants to set the manufacturing units quickly the concessional tax rate of 15% would be extended till 2024.
