The Finance Minister has announced the new schemes and incentives to boost MSME sector also raised the bar of expectation of all the taxpayers including Micro, Small and Medium Enterprises(MSME). In this article, we will discuss the Budget 2021 Expectations For MSME.
Budget 2021 Expectations For MSME
The Finance Minister has brought up with the expectation of all the taxpayers containing Micro, Small and Medium Enterprises(MSME). In past several budgets, schemes and statements have come up with various schemes and incentives to improve MSME sector, however, there are distinct areas aiming at which can bring spurt in the development of this sector.
As per the data circulated by the MSME ministry, India has brief to 6.8 million Udyog Aadhar registered MSMEs and close to 63 million MSMEs in total. MSME related commodities accounted for 49.81 per cent of the total exports made during the FY 2019-20 and the sector furnished assistance to close to 110 million people in India. These percentages show the category of importance and effect MSMEs have on the Indian economy and the significance of FDIs to make unicorn startups in India.
Various Beneficial Schemes Under MSME
In the last several years, the MSME ministry, Commerce and Industry Ministry, and the Finance Ministry of the Government of India, through numerous budgets, schemes and notifications have come up with various schemes and incentives to boost Make in India and improve the local industry, MSMEs and startups like:
1 Scheme particularly for registered MSMEs:
- Interest Subvention and Credit Support Program
- Solar Charkha Mission
- MSME Sampark and Sambandh
- Khadi, Village and coir Industry growth
- Amendment in MSME Act and expansion of the MSME description to cover a larger number of enterprises
- Entrepreneurship and skill growth programs.
2 Profit Linked Incentive Scheme for Electronics Manufacturing and other key sectors like automobile, pharma, telecom, textile, food processes etc.
3 Reduced base Corporate Income tax to 22 per cent and 15 per cent for the current manufacturing sector.
4 E-governance and online e-assessment and e-appeal inaugurated by the Income Tax department through the National E-assessment centre.
5 Advantages given to DPIIT registered startups under the Startup India Initiative:
- Income tax liberty for three years and from angel tax
- Patent application and IPR protection rebates
- Self-Certification
- Susceptible winding up
- Simpler public procurement norms for startups.
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