New Delhi, Feb 1 (KNN) Union Finance Minister Nirmala Sitharaman has presented the fourth budget of the Modi government today. Lets have look at highlights of Budget for the micro, small and medium enterprises (MSME) sector, Start-ups and Taxes.
 

Key Announcements for MSMEs & Start-ups:

•       Extension of ECLGS till March 2023
•       Rs 6,000 crore programme to rate MSMEs to be rolled out over 5 years
•       MSMEs such as Udyam, e-shram, NCS & Aseem portals will be inter-linked, their scope will be widened
•       They will now perform as portals with live organic databases providing G-C, B-C & B-B services such as credit facilitation, enhancing entrepreneurial opportunities
•       A fund with blended capital raised under co-investment model facilitated through NABARD to finance startups in agriculture & rural enterprises for farm produce value chain
•       Startups will be promoted for Drone Shakti
•       PE/VC invested Rs 5.5 lakh crore in startup, expert committee will be set up to suggest measures to help attract investment
•       Existing tax benefits for startups, which were offered redemption of taxes for 3 consecutive years, to be extended by 1 more year
 

Key Highlights on Taxes:

•       The government will tax income from digital asset transfers at 30%
•       No deduction allowed while computing income except cost of acquisition
•       Loss cannot be set off from any other income
•       Gift of cryptocurrencies to be taxed at receiver's end
•       A new provision to allow taxpayers to file an updated return
•       Updated return can be filed within 2 years from the end of the relevant assessment year.
•       Alternate Minimum Tax for cooperative societies to be cut to 15%.
•       Proposal will reduce surcharge on cooperative societies to 7%, for those whose income is between Rs 1 crore and Rs 10 crore 
•       Tax deduction limit increased to 14% on employers contribution to NPS account of state govt employees