| by Admin
On July 5, 2019, Finance Minister Nirmala Sitharaman presented her maiden Union Budget. We have summarized some of the highlights of the budget specially related to business. There are many schemes and initiatives for MSMEs and Startup.
Taxation
- Personal Tax: no changes in the tax
slabs
- Income tax will not be applicable for
persons having an income of less than Rs.5 lakhs per annum.
- Corporate tax rate of 25% will be now
be applicable for companies with a turnover of upto INR
400 crores.
- 2% TDS will be levied if Rs
1 Crore is withdrawn in cash from a single bank account in a year.
- Income tax assessment will be done in
a completely electronic mode with no face-to-face interaction.
- Income tax deduction for person
purchasing electric Vehicles.
- No charges or MDR will be applicable
on digital modes of payment.
- Special Excise duty and Road and
Infrastructure Cess increases on petrol and diesel by Rs1 per litre
each
- Increase in surcharges by 3% for those
earning between Rs. 2 crore and Rs. 5 crore, and 7% for
those earning above Rs. 5 crore, annually.
- Any person having Aadhar can file
income tax return without having to obtain PAN.
Goods and Services
Tax
- Taxpayers with an annual turnover of
less than INR 5 Crores can now file quarterly GST returns.
- A completely automated GST refund
module will be implemented.
- An electronic invoice system to be introduced
MSME/ Startups
- Rs
350 Crores has been allocated for 2% interest subvention to all GST
registered MSMEs on all fresh and incremental loans.
- A
Payment platform will be created for MSMEs for easy payment of bills.
- Pension
for shopkeepers and retailers with an annual turnover of less than INR 1.5 Crore
will be launched under the Pradhan Mantri Karma
Yogi Maan Dhan Scheme.
- Pension
benefits will be extended to over 3 Crores of retailers, traders and
shopkeepers under the Pradhan Mantri Karam
Yogi Maan Dhan Scheme.
- To
improve the technology of MSME and similar industries, Technology Business
Incubators and Livelihood Business Incubators will be set up under the ASPIRE
Scheme. The target is to develop and train 75,000 skilled
entrepreneurs in the Agro-rural Sector.
- Social
stock exchange for the listing of social enterprises and
voluntary organisations.
- Integrate
traditional artisans and creative persons with the global market
- 10,000
new farmer producer organisations (FPOs) for ensuring market reach for
farmers.
- The
period of exemption from capital gains from sale of startups is extended
- Now Startups
are not required to justify fair market value of shares issued to
investors in Category-II Alternative Investments Funds
- Launch
of an exclusive TV channel for startups to provide a platform for startups to
disseminate information
- Expansion
of self-help groups to all districts. Loan of upto Rs. 1 lakh to be
provided to one woman in every self-help group under Mudra Yojana.
- Large businesses will be mandatorily required to provide digital payment options.
Investment
- Liberalize FDI in aviation, media
animation and insurance intermediaries
- Hike statutory limits for foreign
investments in certain companies
- Creation of social stock exchange
under SEBI to help organisations raise capital through equity, debt or a
unit of mutual fund
- Centre proposes tax benefits
to incentivize investments in GIFT City