Income Tax Dept warns public against cash dealings of Rs 2 lakh or more saying that the receiver of the amount will have to cough up an equal amount as penalty.

Amended Definition of MSME

The Govt. has announced revised definition of MSMEs whereby the investment limit is proposed to be revised upwards, additional criteria of turnover would also be introduced. The new definition also eliminates the distinction between the manufacturing sector and services sector as against the existing criteria 

As per revised definition, a company can be classified as Micro if investment is up to Rs 1 crore, turnover up to Rs 5 crore. 

A company can be classified as Small if investment is up to Rs 10 crore, turnover up to Rs 50 crore. 

A company can be classified as Medium if investment is up to Rs 20crore, turnover up to Rs 100 crore.

The amendment in definition will accommodate more units under the MSMEs segment which would further enable them to avail special perks available to MSMEs. On one hand more units will be included under ambit of MSME and on other side the existing units would not fear of losing the status of MSME due to increase in Investment limits.

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