Description
Taxmann MSME Ready Reckoner 6th Edition 2025 by Taxmann's Editorial Board
MSME Ready Reckoner is a comprehensive, up-to-date guide to help micro, small, and medium enterprises (MSMEs) understand the evolving legal, tax, and regulatory environment. This edition incorporates the most recent changes under the MSMED Act, 2006 (including revised composite criteria for classification) and the Income-tax Act 1961 (especially the newly introduced clause (h) in Section 43B relating to prompt payments to MSE suppliers). It clarifies how to utilise the enhanced investment and turnover limits for MSMEs while offering step-by-step guidance, compliance checklists, illustrations, and case studies to manage all aspects of running an MSME in India.
This book is intended for the following audience:
MSME Entrepreneurs & Owners looking for clear explanations on compliance, benefits, and strategic tax planning
Professionals & Advisors (CAs, CS, Advocates, Tax Practitioners, Company Secretaries, Consultants) needing an authoritative desk reference on MSME taxation and regulatory requirements
Corporate Buyers & Larger Business Entities who source goods and services from micro and small enterprises must comply with Section 43B(h) for prompt payments
Start-ups & New Businesses seeking to understand MSME registrations, benefits, and how to leverage various government schemes
Academicians & Researchers focusing on the practical dimensions and legal framework of India's MSME sector
The Present Publication is the 6th Edition | 2025, updated till 3rd April 2025. This book is authored by Taxmann's Editorial Board, with the following noteworthy features:
[Enhanced MSME Investment & Turnover Thresholds]
Incorporates the latest updated criteria for classification (with effect from 1-4-2025) for micro, small, and medium enterprises
Explains the impact of new thresholds on existing and newly formed businesses
[Section 43B(h) Explained]
In-depth commentary on the newly introduced clause (h) in Section 43B of the Income-tax Act, mandating timely payments to Micro & Small Enterprises
Flowcharts and step-by-step illustrations simplify compliance
[Compliance Checklists & Practical Tools]
Buyer-entity checklist for Section 43B(h) compliance
Supplier-side checklist on how Micro & Small Enterprises (MSEs) can protect themselves against delayed payments and invoke legal remedies
[Divisional Structure with Topic-focused Coverage]
Each Division targets a major thematic area—definition & registration, benefits under MSME laws, special benefits for small businesses, choice of legal forms, etc.
[Practical Cases & Illustrations]
Illustrative examples and scenarios clarify complex compliance requirements
Detailed coverage of how to compute turnover and investment under the new criteria
[Appendices & Resource Materials]
Full text of the MSMED Act 2006 and important notifications
Relevant extracts of Section 43B(h) and other key income-tax provisions
Ready reference tables, statutory forms, and government circulars
The coverage of the book is as follows:
Comprehensive MSME Classification
Revised definition of micro, small, and medium enterprises
Step-by-step method to calculate investment in plant & machinery/equipment and to compute turnover for each category
Udyam Registration (mandatory filing, effective date, and classification updates)
Benefits to Registered MSMEs
Protection against delayed payments under Section 15 of the MSMED Act and Section 43B(h) of the Income-tax Act
Interest on delayed payments, TReDS platforms, half-yearly MSME-1 returns by companies, factoring services, etc.
Government procurement and marketing support schemes
Pre-Packaged Insolvency Resolution Process for MSME companies/LLPs
Tax Benefits & Exemptions for Small Businesses
Presumptive taxation under Sections 44AD, 44ADA, 44AE
Relaxations in tax audit for businesses transacting 95% or more in digital modes
Concessional tax rates for small companies and new manufacturing entities
Other compliance relaxations under the Companies Act 2013
Legal Forms for MSMEs
Detailed analysis of various structures: sole proprietorship, partnership, LLP, company, and HUF
Pros and cons of each form regarding compliance, liability, taxation, and operational flexibility
Special Emphasis on Micro, Small, and Medium Segments
Dedicated Divisions focusing on distinct classification challenges, Udyam filing, and benefits unique to Micro, Small, and Medium categories
Importance of ITR Filing for Small Businesses
Guidance on why timely IT returns matter for MSEs and proprietors alike
Start-up Recognition & Benefits
Coverage of start-up definitions, DPIIT recognition, angel tax exemptions, and synergy with MSME benefits
Extensive Appendices
MSMED Act 2006 text
Notifications on inclusion of wholesale and retail trades, activities not covered, extension of Udyog Aadhaar Memorandum validity, etc.
List of 358 items reserved for purchase from Micro and Small Enterprises
Key references to the Mediation Act 2023
The structure of the book is as follows:
Introductory Divisions focusing on the new MSME definitions, classification criteria, and registration under Udyam
Core MSME Benefits & Compliance detailing benefits for registered and even unregistered small businesses, including tax incentives, TDS/TCS, delayed payment remedies, and disclosure requirements
Legal Forms & Their Implications, offering an overview of each business constitution—sole proprietor, partnership, LLP, company, HUF—and how they intersect with MSME provisions
Segment-specific Divisions dedicated exclusively to Micro, Small, and Medium enterprises, clarifying distinct compliance frameworks for each
ITR & Start-up Guidance, illustrating the synergy between MSME benefits and start-up recognition under the DPIIT
Reference Appendices compiling essential statutes, notifications, forms, and official memoranda