India’s Finance Minister Piyush Goyal presented the Union Budget 2019 on February 1, 2019. The Union budget 2019 by the Modi government, as expected, has tried to woo the public before the 2019 general elections. That said, the interim Budget rolled out today has many things in the favor of MSME sector in India as well.
Let’s take a look at the benefits of the Union Budget 2019 for the MSME sector in India:
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The income tax redemption limit for individual taxpayers is raised from 2.5 lakhs to 5 lakhs. So, individuals with an annual income of INR 5 lakhs will no longer have to pay any tax. And individuals with an annual gross income of up to 6.5 lakhs will also need not to pay taxes if they make an investment in PFs and prescribed equities.
The other benefit in terms of the tax deduction is that individuals who also have an annual earning of up to 40,000 from banks and post office deposits in terms of interest. The earlier limit was 10,000. Also, the IT return processing will be done in just 24 hours.
Notably, Modi government has earlier as well taken several steps to strengthen the MSME sector in India. Its other steps include MSME loan in 59 minutes under which MSME will get business loans of up to 1 crores.
Capital Gain Tax
also read: what are the tax benefits of business loan?
The exemption under capital gain tax is also raised to 2 crores. Also, there will be no tax on notional rent on the second house. Piyush Goyal also announced that the GEM platforms will cover all public sector enterprises in order to promote local industries.
The other benefits of the Union Budget 2019 for a common person includes:
An annual pension of 6,000 will be given to the farmers who have land less than 2 hectares under the scheme Pradhan Mantri Kisan Sammal Nidhi.
Indian farmers affected by natural calamities will be provided interest subversion of 3% of loans.
The government will also provide 2% interest subversion for farmers in animal husbandry.
One lakh digital villages in India will be planned in the next 5 years.
25 percent of the total sourcing for government projects will be from Indian MSME sector. And 3% of this 25% will be from women entrepreneurs.
The ESI cover limit increased to 21,000.