Question
According to Union Budget 2023-24, consider the
following statements regarding MSMEs: 1. Medium enterprises with turnover up to Rs 2 crore and certain professionals with turnover of up to Rs50 lakh can    avail the benefit of presumptive taxation. 2. It is proposed to provide enhanced limits of Rs 3 crore and Rs 75 lakh respectively, to the taxpayers whose cash      receipts are no more than 5 percent. 3. It is proposed to allow deduction for expenditure incurred on payments made to them only when payment is         actually made. Choose the correct option using the codes below:Solution
MSMEs are growth engines of our economy. Micro enterprises with turnover up to ` 2 crore and certain professionals with turnover of up to `50 lakh can avail the benefit of presumptive taxation. I propose to provide enhanced limits of ` 3 crore and ` 75 lakh respectively, to the taxpayers whose cash receipts are no more than 5 per cent. Moreover, to support MSMEs in timely receipt of payments, I propose to allow deduction for expenditure incurred on payments made to them only when payment is actually made.Â
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