Budget 2017: Here's What MSMEs, Startups Need To Know | SupportBiz

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Budget 2017: Here's What MSMEs, Startups Need To Know

 
New Delhi: Finance Minister Arun Jaitley has presented the Union Budget 2017 today in the Parliament. His speech was on three vast aspects- Increasing digital economy, fighting black money and increasing financial strength of the country.
Finance Minister Arun Jaitley announced new norms for the Union Budget 2017-2018 on February 1. One of the major announcement in terms of relief of income tax in the Union Budget of 2017 came for the micro, small and medium-sized enterprises (MSMEs). Union Finance Minister Arun Jaitley announced a reduction of tax from 30 per cent to 25 per cent for the MSMEs. This, he said, would make the micro, small and medium firms more viable and also encourage them to migrate to the format of a company.

Here are some of the key aspects the MSMEs and Start ups need to know from his budget

- To make MSMEs more viable,Tax rate for companies with an annual turnover up to Rs50 crore to be reduced to 25%.

- New central scheme focussed on trade infrastructure for exports will be launched

- The Pradhan Mantri Mudra Yojana lending target has been doubled at Rs 2.44 lakh crore.

- Promotion of integral economy and BHIM app will uneash the potential, two new schemes for promoting the BHIM app

- ADHAAR Pay, an application for merchants will be launched shortly for those who do not have plastic money PoS machines

- According to IMF, India is expected to be one of the fastest growing major economies in 2017,            

- StandupIndia scheme to help Dalit, Women to set up green fields projects and be self-sufficient  

- Online pension disposal for the retired defense personnel will be implemented soon

- Railway related state-run companies like Ircon, IRCTC to be listed on stock exchangest

- Tax benefits for Startup companies will now be available for 3 out of 7  yrs. The prominent demand of startups has been addressed

- Domestic manufacturing items like scanners, iris scanners will be getting special pos in tax

- No much change in the custom and other taxes as it will be alternated by GST

- 100 Indian International Skill Centers will be established to give to push ‘Make In India’

- Startups can carry forward their losses for three years even if the promoter goes below 51%