MSME Declaration
MSME provides a big support to the economy of our country. It indeed assists our foreign exchange reserves. Under the norms of the Government of India notification dated 1st June 2020 below mentioned is the definition of MSMEs.
| Classification | Micro | Small | Medium |
| “Manufacturing Enterprises and Enterprises rendering Services” | “Investment in Plant and Machinery or Equipment: Not more than Rs.1 crore and Annual Turnover ; not more than Rs. 5 crore” | “Investment in Plant and Machinery or Equipment: Not more than Rs.10 crore and Annual Turnover ; not more than Rs. 50 crore” | “Investment in Plant and Machinery or Equipment: Not more than Rs.50 crore and Annual Turnover ; not more than Rs. 250 crore” |
(Source: https://msme.gov.in/know-about-msme)
The below-mentioned are the type of organizational structures through which the MSMEs could do their operations.
- Sole Proprietorship concern
- Hindu Undivided Family (HUF)
- Partnership Firms as per the Indian Partnership Act 1932
- Limited Liability Partnership Firms as per the Limited Liability Partnership Act 2008.
- Public Limited Companies and Private Limited Companies according to the Indian Companies Act 2013.
- Co-operative Societies according to the Indian Co-operative societies Act or the State Co-operative Societies Act.
Below mentioned would be the essential provisions of the income tax act 1961 and the Finance Act 2022 concerned with the above sorts of organizations.
Sole Proprietorship Concern
- The same can choose either the Old regime of taxation or the New regime(Sec 115 BAC) of taxation.
- Alternate Minimum Tax (AMT) is appropriate for special cases.
- The below-written are the essential deductions that could be claimed under chapter VIA (when choosing an old tax regime).
I. Sec 80 CCC. II. Sec 80 E. III. Sec 80 CCD. IV. Sec 80EE. V. Sec 80 E. VI. Sec 80 QQB. VII. Sec 80 GG. VIII. Sec 80 TTB. IX. Sec RRB. X. Sec 80 U. XI. Sec 80 GGA. XII. Sec 80 C. XIII. Sec 80 DDB. XIV. Sec 80 G. XV. Sec 80 DD. XVI. Sec 80 D. XVII. Sec 80 CCF. XVIII. Sec 80 GGC. XIX. Sec 80 JJAA. XX. Sec 80 IA. XXI. Sec 80 JJA. XXII. Sec 80 –IAB. XXIII. Sec 80-1B. XXIV. Sec 80-1C. XXV. Sec 80-IE.
Hindu Undivided Family (HUF)
The same can choose either the Old regime of taxation or the New regime(Sec 115 BAC) of taxation.
Alternate Minimum Tax (AMT) is appropriate for special cases.
The below-written are the essential deductions that could be claimed under chapter VIA (when choosing an old tax regime).
I. Sec 80 C. II. Sec 80 TTA. III. Sec 80 D. IV. Sec 80 JJAA. V. Sec 80 DD. VI. Sec 80 JJAA. VII. Sec 80 DDB. VIII. Sec 80 JJA. IX. Sec G. X. Sec 80 IE. XI. Sec GGA. XII. Sec 80 IC. XIII. Sec GGC. XIV. Sec 80 IAB. XV. Sec 80 IA. XVI. Sec 80 IB.
Partnership Firms
- There are 2 kinds of taxation
- Firms that do not follow section 18
- According to section 184
- A Flat income tax rate of 30% on the total income of the company would be needed to get furnished by the companies.
- Alternate Minimum Tax (AMT) is appropriate for special cases.
- The below-written are the essential deductions that could be claimed under chapter VIA.
I. Sec 80G. II. Sec 80 JJAA. III. Sec 80GGA. IV. Sec 80 JJA. V. Sec 80GGC. VI. Sec 80 IE. VII. Sec 80 IA. VIII. Sec 80 IC. IX. Sec 80 IB. X. Sec 80 IAB.
According to the Limited Liability Partnership Act 2008 the Limited Liability Partnership Firms.
Income tax Assessment is as exact as the assessment of the partnership firms
Public Limited Companies and Private Limited Companies according to the Indian Companies Act 2013.
Under the below mentioned of any of the subsequent section, Companies are enabled to choose for the assessment
- Old regime of taxation
- Sec 115 BA
- Sec 115 BAA
- Sec 115 BAB
Under the following section, the MAT is not subjected to be applied with a 15% rate in the condition when a company had chosen for taxation.
- Sec 115 BAA
- Sec 115 BAB
The below mentioned would be the essential deductions that could be claimed under Chapter VIA if the company chooses to taxation beneath the old regime
I. Sec 80G. II. Sec 80 PA. III. Sec 80GGA. VI. Sec 80 LA. V. Sec 80GGC. VI. Sec 80 GGB. VII. Sec 80 IA . VIII. Sec 80 JJAA. IX. Sec 80 IB. X. Sec 80 IAB. XI. Sec 80 IE. XII. Sec 80 JJA. XIII. Sec 80 IC.
Co-operative Societies according to the Indian Co-operative societies Act or the State Co-operative Societies Act.
- The same can choose either the Old regime of taxation or the New regime (Sec 115 BAD) of taxation.
- An alternate Minimum Tax (AMT) with a 15% rate is appropriate for special cases.
The below-written are the essential deductions that could be claimed under chapter VIA (when choosing the old taxation regime).
I. Sec 80G. II. Sec 80GGA. III. Sec 80GGC. VI. Sec 80 JJA. V. Sec 80 JJAA. VI. Sec 80 P. VII. Sec 80 IA. VIII. Sec 80 IB. IX. Sec 80 IAB. X. Sec 80 IC. XI. Sec 80 IE.
