From April 1, 2024, Section 43B(h) of the Income Tax Act changed the rules for buyers from micro and small enterprises. If a buyer pays later than the legal limit of up to 45 days, the payment can be deducted only in the year it is actually made. Traders protested. Business Today reported that textile companies “often work with these small businesses on a credit system.”
The Confederation of All India Traders asked the finance minister to suspend the rule. The Federation of All India Vyapar Mandal went to the Supreme Court. Its president, Jayendra Tanna, said the rule “infringes upon the fundamental rights of MSEs to conduct business on their own terms.”