Finance Ministry Grants TDS Exemption to Credit Guarantee Funds Managed by NCGTC u/s 10(46B)(i) of Income Tax

The Ministry of Finance has granted a TDS exemption to credit guarantee funds managed by the National Credit Guarantee Trustee Company (NCGTC) under Section 80-IB of the Income Tax Act. The exemption is intended to alleviate the tax burden on NCGTC, which manages funds providing guarantees to financial institutions for loans extended to MSMEs. This measure aims to promote MSME growth, enhance financial inclusion, and ensure ease of credit access for SMEs.