Impact of direct tax policies on the growth and tax compliance of MSMEs in india

Author(s)	Ms. Mahalaxmi Eshwar Hullalli, Drithi Vivekananda Shetty, Prasanth TV, Kaushik Nath, Dr. Tejaswini S
Country	India
Abstract	Micro, Small and Medium Enterprises (MSMEs) are a key pillar of the Indian economy, contributing around 30% to GDP and 45% to exports, while generating large-scale employment. To support their growth and improve tax compliance, the Government of India has introduced various direct tax reforms, including reduced corporate tax rates, presumptive taxation schemes, and digital tax administration systems. These policies aim to increase profitability, encourage formalization, and simplify compliance. However, challenges such as complex regulations, compliance costs, and lack of awareness still affect MSMEs, especially micro enterprises. Therefore, it is important to examine how direct tax policies influence MSME growth and tax compliance in India.
Keywords	MSMEs, Direct Tax Policies, Tax Compliance, Presumptive Taxation, MSME Growth, Income Tax, Digital Tax Administration, India
Published In	Volume 8, Issue 1, January-February 2026
Published On	2026-02-10

About IJFMR Fees & Payment Current Issue Publication Archive	Submit Research Paper Track Submission Status Publication Guidelines Publication Ethics Peer Review & Plagiarism	Join as a Reviewer Editors & Reviewers Reviewer Referral Program Get Reviewer Membership Certi.	Website/Journal Policies Usage Policy Content Policies Privacy Policy

Contact Us		+91-9687-828-838	editor@ijfmr.com

International Journal For Multidisciplinary Research