General

  Investment and Turnover limits for the classification of all MSMEs are to be enhanced to 2.5 and 2 times, respectively.   This will help MSMEs to achieve higher efficiencies of scale, technological upgradation, and better access to capital. Revision in classification criteria for MSMEs Types of Enterprises Changes in Turnover Limit Changes in Investment Limit       Micro Enterprises Rs 5 crore to Rs 10 crore Rs 1 crore to Rs 2.5 crore       Small Enterprises Rs 50 crore to Rs 100 crore Rs 10 crore to Rs 25 crore       Medium Enterprises Rs 250 crore to Rs 500 crore Rs 50 crore to Rs 125 crore       Other Initiatives announced in Budget fo...

Numerous changes are being introduced on the liabilities of Partnership Firms and LLPs that are to be effective from April 1, 2025 Starting April 1, 2025, partnership firms, including Limited Liability Partnerships (LLPs), will have to comply with two significant income tax changes brought in by the Finance (No. 2) Act, 2024. These amendments focus on increased limits for partner remuneration and the introduction of Section 194T, which mandates Tax Deducted at Source (TDS) on payments to partners. With the financial year 2024-25 coming to an end, it’s crucial for firms and their partners to understand these changes and ensure compliance. Here’s a detailed look at the two major tax reforms impacting partnership firms from the next financial year.   Increased Limits for Partner Remuneration Until FY 2024-25 (Assessment Year 2025-26), the maximum remuneration a working partner can receive is: On the first ₹3,00,000 of book profit (or in case of a loss): ₹1,50,000 or 90% of ...