New Delhi, 3 Feb (KNN) The Government has made new slabs for Income Tax between 10-10.5 lakh and have proposed 20% tax rebate but withdrawing exemption of 80Cc and 80 H this will not be of any benefit as Union Finance Minister Nirmala Sitharaman presented the budget 2020-21 on 1 Feb.

Although Corporate Tax has been reduced to 22% which will be effectively 25.17% against previous 30% but existing industries would have benefited if it would have been reduced to 15% as is being allowed to companies which have started business after October 1, 2019.

Yogesh Sagar, President, Mohali Industries Association commented on the Union Budget 2020 and said that “It is very disappointing for MSME sector.”

However, the budget has some good news for the MSMEs. To bring down the tax deduction slab of audit from Rs.1.00 crore to Rs.5.00 crore for MSMEs. Under the GeM portal, the government has proposed to provide Rs.27300 crores for further development of Industries and Commerce for the year 2020-21. This will generate more business for MSMEs.

Merging “Make in India” and “Assemble in India” will create more job opportunities like China for labor-intensive export trajectory. This will create more jobs for the youth. The MIA also welcomes the proposed bank deposit insurance enhancement from Rs.1 lakh to Rs.5 lakh.

Proposed creation of Export Hubs in all districts to attract manufacturers of electronic items is a step in the right direction.

National Logistics Policy which is proposed to be released soon will bring down logistics costs which are at present at 14% and expected to come down to 9%. This will enable MSMEs to be globally competitive. The proposal for creating single-window e-logistics market will create employment for the youth.

Commenting on the same Mr. Yogesh Sagar further added that, “Overall, it is a flat budget and it is not going to help improve the economy which is going through a bad phase and we do not expect any GDP increase as there is no proposal for improving the GDP like reduction in GST for auto manufacturing industry or service industry. The State did not get any special benefits.”

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