New Delhi, Feb 1 (KNN) Income Tax bonanza will revive demand but MSMEs got a dried fig in Union Budget, said the Federation of Indian Micro and Small & Medium Enterprises (FISME).

Reacting his reaction to the Interim Budget, which is considered highly crucial because of the General Elections due in May this year, Anil Bhardwaj, Secretary General of FISME said, “As was widely expected, concerns of farmers and workers in unorganized sector dominated the Budget.” 

Referring to the big announcements made by PM Modi in November this year, Bhardwaj said, “The Micro, Small and Medium Enterprises (MSMEs) will have to take satisfaction from Prime Minister’s 12 point mega package announced on 2nd November 2018 which included Loan in 59 Min and interest subvention for GST compliant enterprises.”

 The Finance Minister merely reiterated the initiatives already announced last year, he said as there were no big announcements made by the Union Finance Minister Piyush Goyal for credit-hit MSME sector.

Representing view of FISME, one of the largest bodies of MSME associations in the country, Bhardwaj said the Traders who have been up in arms against GST and e-commerce may take heart that their demand of renaming DIPP to Department for Promotion for Industrial and Internal Trade  is met.

Many MSMEs and traders would also welcome announcement that up to the turnover of Rs. 5 crore dealers could file quarterly returns, he opined.

The FISME’s Secretary General said, “MSME sector cannot hide their disappointment, however, as nothing new came their way either in the way of direct taxes or credit ease of access to credit. 

However, praising the income tax rebate announced by the Finance Minister, Goyal said, “But the big bang has been the massive jump in Income Tax exemption limit to Rs. 5 lakh. This will help in revival of demand which was badly affected by demonetization and GST.”

In a move which would woo the tax payers of the country, especially the middle class, Goyal announced that income upto Rs 5 lakh will be exempted from income tax.

Goyal said that those with income up to Rs 5 lakh and another Rs 1.5 lakh in investments totaling Rs 6.5 lakh will have to pay no tax. The move is likely to benefit nearly Rs 3 crore middle class income earners. (KNN Bureau)