Union Budget 2020 is here. There are many recommendable announcements that are intended to help India grow its economy. If reports are to believed, it is expected that the country would reach the target of a $5 trillion economy by the end of 2022.
But the race is still long! It’s not a one- day process or a one-man army task. When we talk about the fiscal deficit, the whole nation has to take its responsibility. No one alone could be blamed for it. Moving ahead, talking about the positive efforts taken by the government, the budget 2020, is a win-win situation for all the aspiring entrepreneurs.
With the announcements of a greater range of tax relaxation for the SMEs, the budget seems to be optimistic with the dreams of building a business. In this article, we will discuss 5 most convincing reasons that explain why it is a good idea to kickstart your own business and how budget 2020 would support your entrepreneurship journey.
Start-ups To Enjoy A Bigger Reduction In Corporate Tax
Great news for start-ups! This union budget 2020 has given a new reason to go ahead with your business plan. You can now leverage the highest reduction of around 22% in your corporate tax. And to make your day even better, you need to know that this statistical reduction is the maximum, one can experience in the world. Yes, India has given the maximum limit of tax leverage to the corporate tax. Are you still finding an excuse to not live your dream of owning a business in India?
This one announcement is enough to give you a quick boost to start your business today.
Instant Loans For MSMEs: Financial Aid To Assist Your Business Plans
Heard about facing multiple struggles to get required financial aid for your business set up? The majority of businesses are facing roadblock for getting the essential financial aid because of one or the other reason. This has already disheartened many of the aspiring and deserving business ideas. But, wait a minute. This budget 2020 has something exciting for you. If you have an idea to rule the market, the government is ready to sponsor your dreams and that too without letting you wait much.
As per the new budget guidelines, the government would be launching app-based invoice financing. This would help in getting swift loans for MSMEs and would also allow to streamline the delayed payments for loans. Isn’t it a brilliant start to let you begin with your entrepreneurship journey?
Increase in Audit Threshold
To make the start-ups and other MSMEs to stay confident and conquered in the competition, the budget of 2020 had taken a small yet smart initiative. Ditching the old processes, it has been now said that the audit threshold figure would switch from Rs. 1 crore to Rs. 5 crore. This simple turn would help in allowing the small traders, retailers to get rid of the compliance trend and get a chance to focus on their internal performance.
It would be a positive move for all those business holders who are currently working on the limited administrative bandwidth.
Revised Structure For Debt Window
Prior to the launch of the union budget 2020, the time frame to repay the debt for an MSME was up to March 30, 2020. But as soon as the budget was presented, the window has been restructured and shifted till March 30, 2021. This initiative has been taken by the Reserve Bank of India. It means that you have completed 365 days extension to repay the debts.
These are some of the liberal decisions from the government which has motivated the enthusiastic and budding entrepreneurs to give a thought about starting up their businesses.
Extended Claim Deduction Periods For Start-ups
When we say about budget, we talk about the taxes and what all exemptions government is offering to the people. Speaking in the same dimension, this 2020 budget has been very kind to the start-ups when it comes to the tax deduction protocol.
As per the budget, there is an extension of up to 3 years of time to claim a deduction for start-ups. Earlier, the time frame was subjected to 7 years only. But in this new budget, the start-ups are getting a time of around 10 years to claim the deduction in the taxes.
Our government is always empowering the young ideas to get their identity in the market. In a nutshell, when you speak about embracing the thought of starting up your own business, this is the right time when you should start.
Are you having any budding idea but is finding it difficult to turn it into reality? Don’t worry!
Get in touch with us. We would help you to live your dreams seamlessly.
Subscribe to our newsletter
'Jungleworks Entrepreneur's Den' to get access to the latest industry & product insights.