New Delhi, April 26 -- A leading MSME organisation sought major tax reliefs for the sector at the meeting of the Select Committee of the proposed Income Tax bill on Friday, people familiar with the matter said.
The Federation of Indian Micro and Small & Medium Enterprises (FISME) has told the panel led by BJP lawmaker Baijayant Panda that one of the major impediments for micro enterprises to grow is an archaic law that imposes Long Term Capital Gains Tax on companies who shift factories from one state to another.
The FISME argued that if a micro enterprise-which comprises more than 95% of the MSME sector-wants to shift from Okhla to Noida, it has to pay capital gains tax on the sale of its land in Okhla. According to FISME, such taxes are...