ACCI seeks clarification on amended section of I-T Act to protect traders

MADURAI: To protect retail and wholesale traders from liquidity crunch, Agrofood Chamber of Commerce and Industry (ACCI), Madurai has sought clarification from the Finance Ministry on the amended Section 43 (B) (h) of Income Tax Act. Retail and wholesale traders were facing a severe liquidity crunch after their sales were hit by the COVID-19 lockdown, S Rethinavelu, president, ACCI, said on Monday.

Considering this, the MSME has decided to include retail and wholesale traders as MSMEs and be allowed to be registered on Udyam portal’ from July 07, 2021. However, tax consultants, pan India, were giving contrary interpretations that the amended Sec 43(B)(h) is applicable only to micro and small enterprises engaged in manufacture or production of goods and not to traders. Citing these, the ACCI has urged the ministry to come forward with a clarification that the section is applicable to the retail and wholesale traders also, ensuring their financial health.