MSMEs will have to pay only 25% tax even if turnover crosses Rs 50 cr in FY 17

New Delhi, Feb 9 (KNN) CBDT Chairman Sushil Chandra has clarified that the MSMEs that had a turnover of less than Rs 50 crore in 2015-16 will have to pay tax at the reduced rate of 25 per cent from April 1 even if they cross the threshold in 2016-17 or subsequent years.

According to a media report, Central Board of Direct Taxes (CBDT) Chairman said the Income-Tax Department will come out with a clarification on which companies would be eligible to avail the tax benefit.

The corporate tax for MSMEs with annual turnover up to Rs 50 crore was cut to 25 per cent from the existing 30 per cent in the Union Budget 2017-18.

Chandra said if a company’s turnover in 2015-16 was Rs 50 crore then it will be subject to 25 per cent tax.