SC Rejects Plea on 45-Day Pay Rule
ECONOMY & POLICY

SC Rejects Plea on 45-Day Pay Rule

The Supreme Court (SC) has dismissed a plea filed by micro and small businesses challenging the 45-day payment rule stipulated in the income tax law. The ruling comes as a setback for these businesses, which sought relief from the stringent payment timeline mandated by the legislation.

The plea, filed by representatives of micro and small enterprises, contested the provision in the income tax law that requires businesses to settle their tax liabilities within 45 days of the close of the financial year. The petitioners argued that the timeline imposed undue financial burden on small businesses, especially during periods of economic downturn and cash flow constraints.

However, the SC upheld the validity of the 45-day payment rule, citing the importance of timely tax compliance and revenue collection for the functioning of the government and the economy. The court noted that while the rule may pose challenges for certain businesses, it serves the broader public interest by ensuring the stability and sustainability of the fiscal system.

The dismissal of the plea underscores the need for micro and small businesses to adapt to regulatory requirements and comply with statutory obligations in a timely manner. It highlights the significance of effective financial management and planning strategies to navigate the complexities of tax compliance and regulatory frameworks.

For micro and small enterprises, the SC's ruling reaffirms the importance of prioritising financial discipline and compliance with tax laws to avoid legal repercussions and penalties. It underscores the need for businesses to maintain robust accounting practices, monitor cash flows diligently, and seek professional guidance to meet their tax obligations efficiently.

While the SC's decision may pose challenges for micro and small businesses grappling with financial constraints, it also underscores the imperative of fostering a conducive business environment and supporting entrepreneurship through targeted policy interventions and regulatory reforms. By addressing systemic barriers and providing adequate support mechanisms, policymakers can empower small businesses to thrive and contribute to economic growth and employment generation.

In conclusion, the SC's rejection of the plea challenging the 45-day payment rule in the income tax law reaffirms the importance of tax compliance and fiscal discipline for micro and small enterprises. It underscores the need for businesses to adopt proactive measures to meet their statutory obligations and navigate regulatory complexities effectively.

The Supreme Court (SC) has dismissed a plea filed by micro and small businesses challenging the 45-day payment rule stipulated in the income tax law. The ruling comes as a setback for these businesses, which sought relief from the stringent payment timeline mandated by the legislation. The plea, filed by representatives of micro and small enterprises, contested the provision in the income tax law that requires businesses to settle their tax liabilities within 45 days of the close of the financial year. The petitioners argued that the timeline imposed undue financial burden on small businesses, especially during periods of economic downturn and cash flow constraints. However, the SC upheld the validity of the 45-day payment rule, citing the importance of timely tax compliance and revenue collection for the functioning of the government and the economy. The court noted that while the rule may pose challenges for certain businesses, it serves the broader public interest by ensuring the stability and sustainability of the fiscal system. The dismissal of the plea underscores the need for micro and small businesses to adapt to regulatory requirements and comply with statutory obligations in a timely manner. It highlights the significance of effective financial management and planning strategies to navigate the complexities of tax compliance and regulatory frameworks. For micro and small enterprises, the SC's ruling reaffirms the importance of prioritising financial discipline and compliance with tax laws to avoid legal repercussions and penalties. It underscores the need for businesses to maintain robust accounting practices, monitor cash flows diligently, and seek professional guidance to meet their tax obligations efficiently. While the SC's decision may pose challenges for micro and small businesses grappling with financial constraints, it also underscores the imperative of fostering a conducive business environment and supporting entrepreneurship through targeted policy interventions and regulatory reforms. By addressing systemic barriers and providing adequate support mechanisms, policymakers can empower small businesses to thrive and contribute to economic growth and employment generation. In conclusion, the SC's rejection of the plea challenging the 45-day payment rule in the income tax law reaffirms the importance of tax compliance and fiscal discipline for micro and small enterprises. It underscores the need for businesses to adopt proactive measures to meet their statutory obligations and navigate regulatory complexities effectively.

Next Story
Infrastructure Urban

Aadhaar Authentications Cross 27 Billion in FY25

Aadhaar authentication transactions surged past 27.07 billion in FY 2024–25, including 2.47 billion in March alone, reflecting its growing adoption across sectors such as banking, finance, telecom, and public service delivery. Since its inception, the cumulative number of Aadhaar authentication transactions has exceeded 148 billion.The Unique Identification Authority of India’s (UIDAI) AI/ML-based face authentication technology is also witnessing a sharp rise in usage. In March 2025 alone, over 150 million face authentication transactions were recorded. This biometric modality is now used ..

Next Story
Infrastructure Urban

IEPFA Holds Preparatory Meet for 'Niveshak Shivir' Initiative

The Investor Education and Protection Fund Authority (IEPFA), under the Ministry of Corporate Affairs, Government of India, hosted a preparatory meeting on April 28, 2025, with Nodal Officers from stakeholder companies via video conference. The session, chaired by IEPFA CEO Smt. Anita Shah Akella, focused on finalising operational plans for the upcoming ""Niveshak Shivir"" initiative—a joint effort between IEPFA and the Securities and Exchange Board of India (SEBI).""Niveshak Shivir"" aims to improve investor services and streamline the claims process by reaching out to cities with a high nu..

Next Story
Infrastructure Urban

India, France Sign Deal for 26 Rafale-Marine Jets for Navy

India and France have signed an Inter-Governmental Agreement (IGA) for the acquisition of 26 Rafale-Marine aircraft for the Indian Navy, comprising 22 single-seater and four twin-seater jets. The deal also includes training systems, simulators, associated equipment, weapons, and performance-based logistics, along with additional equipment for the Indian Air Force’s existing Rafale fleet.The IGA was signed by India’s Defence Minister Rajnath Singh and French Minister of Armed Forces Sébastien Lecornu. The agreement, along with supply protocols for aircraft and weapons, was exchanged in the..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?