Here are the Top 17 Budget 2019 takeaways that favor every small business in India.
Rs 350 crore loan has been allocated for GST registered businesses to help them grow.
Result: Getting loans will become much easier for small businesses.
Under this Union budget, 2% interest will be paid by the GOVT for GST-registered MSME loans.
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Result: This is estimated to increase the cash flow in 20% of GST-registered MSMEs.
Digital payments will be FREE for retailers in this budget 2019.
Result: This promotes digital payments as there will be no extra charges for electronic payment.
GST on electric vehicle reduces from 12% to 5% under budget 2019 reducing the cost of electric vehicles.
Result: Electric cars and bikes become cheaper. More and more people will buy economical & pollution-free electric vehicles. When transportation costs reduces, a lot of other prices reduce too.
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A new dedicated payment platform will be created for small businesses to reduce payment delays. Under budget 2019, MSMEs can file bills and payment on it.
Result: Investment in MSMEs will increase if delays in payments reduces. Also, this will help get more businesses under the formal economy.
The govt plans to start an e-commerce platform like ‘Amazon and Alibaba’ to sell products from MSMEs and the Khadi and Village Industries Commission.
Result: This will help Rural Businesses to sell better.
Monthly Pension of Rs. 3000 will be given to 3 crore retail traders and small shopkeepers after they reach 60 years. To avail the pension scheme, traders should show just their 12-digit Aadhaar card number and the bank account details. Over 5 crore new traders are expected to join the pension scheme in the coming three years.
Result: This brings in financial security for Traders and shopkeepers at their old age.
Lower rate of 25 % instead of 30% Corporate Tax to companies with an annual turnover up to Rs 400 crore.
Result: This will give a boost to 99.7% of small and medium businesses.
An easy tax system for startups. No I-T department inspection required. Source of funds raised by startups will not be under strict inspection.
Result: This will encourage young people to turn ideas into startups.
‘Stand Up India’ Scheme for financing SC/ST or/and women entrepreneurs continues till 2025 according to union budget 2019.
Result: It will become easier for women and SC/ST entrepreneurs in setting up their own businesses.
“Make in India”, a program to grow Micro, Small and Medium businesses, is one of the major focus areas of the Union Budget this year.
Result: Companies from different countries will invest in Indian projects. Manufacturing SMEs will get more investments.
80 Livelihood Business Incubators (LBIs) and 20 Technology Business Incubators (TBIs) in 2019-20 to develop 75,000 skilled entrepreneurs in agro-rural industry sectors say the budget news.
Result: This will help create and grow young businesses by providing them with the necessary support and financial and technical services.
Not having a PAN card? Just use Aadhaar card to file your Income Tax Return (ITR), says the budget 2019!
Result: Taxpayers will find it easy to file their ITR.
2 % Tax will be deducted if one withdraws cash more than Rs. 1 crore in a year from a bank account.
Result: This will discourage the use of cash and promote the use of digital payments for financial transactions.
Under budget 2019, businesses earning more than Rs 50 Lakh in a year cannot charge customers on digital payments.
Result: This will also discourage business payments in cash.
E-verification mechanism for establishing investor identity and source of funds for startups.
Result: With this, funds raised by startups will not require any kind of inquiry from the IT Department”.
New TV channel to help startups get more funds to grow their businesses.
Result: There will be a media boost to help startups and entrepreneurs find the right Venture Capitals (VCs).
This Budget 2019 takeaways are definitely an indication of Govt wanting businesses to come under GST and grow.
What do you think these budget 2019 highlights? Please comment below.
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