Section 43B(h) of the Income Tax Act

The introduction of Section 43B(h) in the Income Tax Act through the 2023 Finance Bill has led to significant confusion among companies engaging with Micro and Small Enterprises (MSEs) due to its intricate provisions. This guide endeavors to address some of the key issues stemming from this section by offering clear guidance for businesses collaborating with MSEs. While unraveling the implications of this provision requires navigating through complex details, our aim is to illuminate the challenges that businesses face when working with MSEs under the updated tax regulations.

We are delighted to present the analysis of this provision.