Some insights on the Union Budget and revised fiscal deficit target for FY20 presented by Finance Minister Nirmala Sitharam.
Our Finance Minister Nirmala Sitharam in her Union Budget speech has stressed on the start-ups and how they have emerged as a growth engine of the current Indian Economy.
This year’s budget had a slew of announcements that supports and promotes start-ups.
In the budget 2020, any start-up with an estimated turnover of up to Rs 100 crore will be able to claim 100 percent deduction on their profit. This will be liable for computing tax liability for three consecutive years out of 10 years of its incorporation.
This is a liberating move by the Union Government.
A digital platform will be encouraged, according to Union Budget. Digitization leads to innovation and also it is the need for an hour. Further, Sitharam states in her 2.5 hours long speech that she has proposed providing initial funding, including seed funds, to promote the emergence and development of the first phase of start-ups.
The budget surely is a game-changer for start-ups and MSMEs. There will be no audit if MSME turnover is less than Rs 5 crore.
In the micro, small and medium enterprises (MSME) sector, there has been a proposal to increase turnover limit 5 times.
These measures are welcomes with an open arm by entrepreneurs and start-ups alike.
Several Start-ups are pumped up. However, it completely depends on how the budget will be executed in the system. As an industry, everyone has been jaded by the past- there have been several issues when it comes to implementation. There is a hope that this year will be different and there will be no friction whilst implementing and executing the proposed policies.