The Union Budget 2017 has got some good news for small and medium enterprises (SMEs)! As per the managing director, Federation of Kutch Industries Associations (FOKIA), increase in allocation for infrastructure spending will benefit many industries including MSMEs.
Following are the updates on union budget 2017:
Slashed income tax rates
For annual income between Rs. 2.5 lakh to Rs. 5 lakh, there is a reduction of Income tax rate to 5% from 10 %. If annual income is Rs. 3 lakh, then there will be zero liability. The surcharge of 15% remains same for those with income over Rs. 1crore. Whereas, those who are earning between Rs. 50 lakh to Rs. 1 crore, the surcharge is 10%.
Great news SMEs
The government has reduced the Corporate Income Tax on small and medium enterprises. There is a 5% reduction in income tax for companies with revenue up to Rs. 50crores.
Benefits due to demonetization
Demonetization has the potential to generate long-term benefits and one of the biggest benefit is that banks have started reducing the lending rates. It can help SMEs to get loans from banks, whenever there is a need for the same.
Education
For the education sector the Government is planning to introduce market relevant training for youth. This will help in creating more jobs and youth can commence their own businesses.
Getting digital
There is a massive digital revolution going on in India. For example, launching BHIM (Bharat Interface for Money). This app allows you to send and receive money with just one tap. So, once it is successfully launched, one doesn’t have to stand in the bank queues for any financial transactions.
New FDI policy
As per the new FDI policy (which is still under consideration) where PSU firms will be listed under revised procedure. In addition to this, a new exchange traded fund that contains PSU stock will be launched in the year 2017 – 18. Also, to ease out foreign investment, the Government has announced the abolition of Foreign Investment Promotion Board (FIPB). It should help SMEs if they are looking for any foreign investment.
Conclusion
After going through the above-mentioned features, it is proved that the union budget 2017 – 18 has come as a huge breather for the Indian startups as well as the SMEs. But, as per some SMEs players the tax reduction is hardly any relief. Due to rigid norms, the businessmen are unable to avail the schemes that have been introduced by the government in the past. Therefore, it is important that the Government should take some necessary steps to make these norms more lenient for the betterment of SMEs.
Cloud ERP
Uneecops which always remains in the news for achieving one or more awards from SAP for its outstanding contribution,...
With technology taking a new shape now and then, it’s natural for business leaders to be mistrustful of technology,...
The manufacturing industry is not immune to this unexpected and difficult time. The past few months have been tough...
Streamline your business processes and improve productivity using our cutting edge ERP solutions & service offerings custom built for small and medium enterprises.
Our e-Governance solutions enable the government to reduce operational complexities and help citizens, businesses & government bodies to leverage technology to access public services with ease.
Our products portfolio comprises of business automation software’ that helps you focus on high-value tasks and improves organizational efficiency by automating repetitive human tasks, process workflows, data capture & decision making.
Get actionable business insights with our cutting edge BI products & consulting services. Make informed decisions and improve business efficiency with real-time analytics.