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We would like to congratulate the Hon. Finance Minister to deliver very focused budget even during such a tough times of global pandemic, giving lot of importance on Health, Agriculture, MSME sector and infrastructure sector, which are the highly employment generation sectors. We have seen more important highlights from MSME sector in following proposals in the Budget:

Allocation of Rs. 27,300 crores for development and promotion of Industry and Commerce.

Allocation of Rs. 27,300 crores for development and promotion of Industry and Commerce.

Scheme is proposed to encourage Manufacture of Mobile phones, electronic equipment and semi-conductor packaging.

Scheme is proposed to encourage Manufacture of Mobile phones, electronic equipment and semi-conductor packaging.

Customs Duty exemptions on import in certain sectors like Mobile parts, batteries, Garments, Leather products, handicraft items etc are removed and import duty is proposed to be levied, so as to encourage domestic manufacture of such products.

Customs Duty exemptions on import in certain sectors like Mobile parts, batteries, Garments, Leather products, handicraft items etc are removed and import duty is proposed to be levied, so as to encourage domestic manufacture of such products.

Scrapping of Vehicles beyond 15 to 20 years although have good impact on fuel import and environment, it equally has very positive impact on auto part components manufacturing in India, which is mainly done by MSME sector. Increase in sale of vehicles have direct positive impact on the auto part component manufacture.

Scrapping of Vehicles beyond 15 to 20 years although have good impact on fuel import and environment, it equally has very positive impact on auto part components manufacturing in India, which is mainly done by MSME sector. Increase in sale of vehicles have direct positive impact on the auto part component manufacture.

Affordable housing companies will continue to enjoy the tax holiday benefit for another one year.

Affordable housing companies will continue to enjoy the tax holiday benefit for another one year.

There are lot of measures taken from compliance and regulatory point of view of ‘ease of doing business’ for MSME sector:

There are lot of measures taken from compliance and regulatory point of view of ‘ease of doing business’ for MSME sector:

Reliefs in Income Tax:

Reducing litigation for small tax payers by Constitution of Faceless Dispute Resolution Panel for people having Total Income upto Rs. 50 Lakhs and disputed Income upto Rs. 10 Lakhs.
Reducing litigation for small tax payers by Constitution of Faceless Dispute Resolution Panel for people having Total Income upto Rs. 50 Lakhs and disputed Income upto Rs. 10 Lakhs.
Tax audit limit to be increased for turnover from 5 crores to Rs. 10 crores for those having less than 5 % cash Transactions.
Tax audit limit to be increased for turnover from 5 crores to Rs. 10 crores for those having less than 5 % cash Transactions.
Income Tax Appellate Tribunal to be Faceless. -Only electronic communication will be done. 
Income Tax Appellate Tribunal to be Faceless. -Only electronic communication will be done. 

Reliefs in Company Law:

Easing compliance requirements of Small Companies and  threshold for being Small Companies are increased – Share Capital threshold increased from Rs. 50 Lakhs to Rs. 2 Crores and Turnover from Rs. 2 crores to Rs. 20 crores.
Easing compliance requirements of Small Companies and  threshold for being Small Companies are increased – Share Capital threshold increased from Rs. 50 Lakhs to Rs. 2 Crores and Turnover from Rs. 2 crores to Rs. 20 crores.
One Person Companies can grow without any restrictions in Share Capital or Turnover. Non Resident Indians having presence in India of 120 days in a year is also be allowed to set up One Person Company in India
One Person Companies can grow without any restrictions in Share Capital or Turnover. Non Resident Indians having presence in India of 120 days in a year is also be allowed to set up One Person Company in India
Many MSME companies are operating in Limited Liability Partnership (LLP) format. Now it is proposed for decriminalisation of Limited Liability Partnership Act.
Many MSME companies are operating in Limited Liability Partnership (LLP) format. Now it is proposed for decriminalisation of Limited Liability Partnership Act.
Under Companies Act it is proposed to Launch MCA Version 3.0, which is expected to simplify the Compliance Management for all the Companies.
Under Companies Act it is proposed to Launch MCA Version 3.0, which is expected to simplify the Compliance Management for all the Companies.

Other Measures:

Collateral Free loan for MSME business.

Collateral Free loan for MSME business.

Disallowing global tenders of upto Rs. 200 crores to MSME sector.

Disallowing global tenders of upto Rs. 200 crores to MSME sector.

Earlier this year the definition of MSME was revised to include many companies under MSME sector having investment upto 50 crores and turnover upto Rs. 250 crores.”

Earlier this year the definition of MSME was revised to include many companies under MSME sector having investment upto 50 crores and turnover upto Rs. 250 crores.”

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A Courtesy to Mr. Abhijeet who helped us to write up the blog!

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CA. Abhijeet Deshmukh, Sanjay Rane <br>& Associates Chartered Accountants

CA. Abhijeet Deshmukh, Sanjay Rane
& Associates Chartered Accountants

CA. Abhijeet Deshmukh, Sanjay Rane <br>& Associates Chartered Accountants

CA. Abhijeet Deshmukh, Sanjay Rane
& Associates Chartered Accountants

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