On 20th July 2020, the Central Board of Direct Taxes(CBDT) and the Ministry of Micro, Small and Medium Enterprises(MoMSME) signed the formal memorandum of understanding(MoU) for sharing of data related to income tax returns by the CBDT to the Ministry of MSME.
Anu J Singh, the principal director General of Income tax (systems) and Devendra Kumar Singh, Additional Secretary and Development Commissioner of MSME Ministry signed the MoU.
Note:
The MoU came into force on 20th July 2020, marking the era of cooperation and synergy between CBDT and MoMSME.
Features of MoU:
i.The MoU enables a seamless sharing of information related to the Income Tax Return (ITR) by the Income Tax Department to the Ministry.
ii.The shared data will support the Ministry to check and classify the enterprises in the category of micro, small and medium enterprises as per the criteria specified by the Ministry of MSME in S.O. 2119(E) dated 26th June 2020.
iii.To enable the data exchange both, CBDT and MoMSME will appoint nodal officers and alternate nodal officers.
iv.This data exchange enables the ministry to obtain the required information related to the investment and turnover of the entity for declaring the enterprise as a MSME directly from the IT Department.
Key Points:
i.The CBDT has directed the Principal Director General of Income tax systems to share the information with the MoMSME on the order dated 14th July 2020.
ii.Section 138 of Income Tax Act empowers the income tax authorities to share the information of the taxpayers with other government agencies
iii.With the consultation from the concern ministry the timeline for providing the information will be decided by the Principal Director General of Income tax systems.
Revision of MSME definition in Atma Nirbhar Bharat:
| Enterprise | Investment in plant and machinery | Turnover |
|---|---|---|
| Micro | Does not exceed Rs.1 crore | Does not exceed Rs.5 crore |
| Small | Does not exceed Rs.10 crore | Not over Rs.50 crore |
| Medium | Should not exceed Rs.50 crore | Below Rs.250 crore |
Recent Related News:
i.MSMEs Launches Funding Scheme “Distressed Assets Fund–Sub-ordinate Debt for MSMEs” to Help the Distressed MSME Sector.
ii.MSME implemented a new scheme “Scheme of Fund for Regeneration of Traditional Industries” (SFURTI) to set up traditional industries clusters (Khadi, Coir & Village industries clusters).
About Ministry of Micro, Small and Medium Enterprises(MoMSME):
Union Minister– Nitin Jairam Gadkari
Minister of State– Pratap Chandra Sarangi
About Central Board of Direct Taxes(CBDT):
Chairperson– Pramod Chandra Mody
Headquarters– New Delhi
