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The Finance Act of 2023 introduced a new provision, Section 43B(h), which allows for the immediate deduction of any amount owed to Micro and Small enterprises for goods supplied or services rendered, provided it is settled within the prescribed timeframe outlined in the Micro, Small, and Medium Enterprises Development (MSMED) Act of 2006. This amendment seeks to alleviate the challenge of working capital scarcity prevalent in the MSME industry and foster timely payments to micro and small businesses. The amendment will apply to the assessment year 2024–2025 and onwards, with its implementation scheduled for April 1, 2024