Finance Ministry Announces No Deduction of Income Tax on Payments Received by Credit Guarantee Fund Trust for MSMEs

The Finance Ministry has announced that no income tax will be deducted on payments received by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). This exemption is designed to support the MSME sector, particularly in light of the economic challenges posed by the pandemic. The measure aims to enhance liquidity for MSMEs by ensuring that the funds provided by CGTMSE are not subject to tax deductions. The move is expected to facilitate easier access to credit for small businesses and provide a boost to the MSME sector’s recovery and growth.