CBDT Exempts Credit Guarantee Fund Trust for Micro and Small Enterprises from TDS

The Central Board of Direct Taxes (CBDT) has exempted the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) from the requirement to deduct tax at source (TDS) on payments made to it. This exemption aims to provide relief to micro and small enterprises, as it allows them to access funds without additional tax deductions. The CGTMSE plays a pivotal role in providing financial guarantees for loans extended to these enterprises, which are often unable to secure funding through traditional channels. The exemption is expected to simplify financial transactions and improve liquidity for small businesses, aiding in their growth and sustainability.