Budget 2019 – Points To Note for SMEs and MSME -

The first budget of the Modi Government was presented by Finance Minister Nirmala Sitharaman. In the much-anticipated budget, the Fin Min highlighted the financial situation of the nation in the next five years. The main focus was at undertaking various steps to improve the condition of the SME and MSME ecosystem.

Here are some of the key pointers to pay attention to for start-ups and MSME –

The loan amount of Rs 1 crore for the SMEs and MSMEs needs to be done with in 59 minutes (less than 1 hour) with the help of an online portal.

There would be the provision of an exclusive TV channel for startups under the Doordarshan bouquet which will serve as a platform to broadcast information in the industry.

As per the latest budget, SMEs and MSMEs will get access to start a new payment portal in order to prevent any delay in payments and with the aim of boosting the investment in the MSME sector.

SME retailers with an annual turnover of less than 1.5 crores will be eligible to the pension benefit scheme under the Pradhan Mantri Man Dhan Yojna. At the same time more than 3 crore shop owners will benefit from this scheme.

The investors can escape the scrutiny they face at the time of filing requisite declarations. E-verification will be done, ensuring that the funds generated by startups do not need any tax scrutiny.

The Fin Min also laid emphasis that special arrangements will be made by CBDT for all startup cases as well as pending reviews.

To reduce any kind of harassment to the taxpayer; faceless income tax assessment in an electronic mode without any kind of human interface will also be launched in a phased manner.

“Stand Up India” Scheme will last till 2025.

Rs 350 crore has been allocated under the interest subvention scheme, for 2% interest subvention on loans to all the GST registered SMEs and MSMEs.

The Government also aims to expand the participation of women in the nation’s development. In this budget, there is also a proposal to expand self-help groups to all districts, with one woman in every SHG eligible for a loan up to Rs 1 lakh for business expansion under Mudra Yojana.

This budget is indeed set to create a wide-ranging impact on all medium and small businesses.