If you’re starting a new venture or managing an MSME, the Union Budget has several key updates for you. Firstly, angel tax has been abolished, implying you can now raise funds without worrying about tax burdens. Additionally, the government is introducing a Rs. 1,000 Crore venture capital fund dedicated to the space economy, which could be a great opportunity if your start-up is in that sector.
As an MSME, you might find it easier to tap into international markets through newly established e-commerce export hubs facilitated by public-private partnerships. You could also benefit from an enhanced credit guarantee scheme, that allows you to access collateral-free loans for machinery and equipment. Moreover, the Mudra loan limit has been increased to Rs. 20 Lakhs from the previous Rs. 10 Lakhs.
The TReDS platform will be expanded to help unlock working capital by converting receivables into cash. The reduction of the TDS rate to 0.1% for e-commerce operators might positively impact your cash flow. Short-term capital gains tax has been reduced to 20% and long-term gains to 12.5%. Furthermore, corporate tax for foreign companies has been reduced to 35%. The fiscal deficit is projected at 4.9% of GDP, with Rs. 11.11 Lakh Crores allocated for capital expenditure, which could support infrastructure and growth.
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