Income Tax--Tax Audit

Disclosure of Amounts Paid or Payable to MSME Units

V.K. Subramani

The disclosure of amounts paid or payable to MSMEs is one of the significant disclosures required in the tax audit report of the assessment year 2025-26. The disclosure requirement in this regard has gone up all time high for the financial year 2024-25 (AY 2025-26). There are mixed views amongst the MEME units as regards the timeline fixed in section 15 of the MSMED Act,2006. Given the benefit accruing to the MSME units being more than the discomforts posed to them, it is a foregone conclusion that the requirement to pay the MSMEs within the rigid timelines as per law has come to stay and the taxpayers have to reconcile to this reality.

Clause 22 of Form No.3CD seeks the following details