Look What Longest Budget Speech In History Had For Msmes & Start-ups

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Look What Longest Budget Speech In History Had For MSMEs & Start-Ups

While tabling the Union Budget 2020 in the parliament, Finance Minister Nirmala Sitharaman threw light on 8 main areas- Aspirational India, Economic Development, Caring Society, Paradigm shift in Governance, Financial Sector, Fiscal Management, Direct & indirect tax.
With delivering the longest budget speech in history, Nirmala emphasized on providing relief on working capital requirements for MSMEs and easing the peculiarity of ESOP (Employee Stock Ownership Plan) for startups.
Below are the major announcements made by Finance Minister, we can compare it with the previous tax provisions 2019-20

What we got for SMEs and Startup Services?
1. Invoice Financing
To improve the cash flow within the SMEs, Sitharaman reiterated that invoice financing app will be launched. Businesses will be able to borrow funds through invoice financing equivalent to the amount due from their customers.
This will not only help in having cash flow in an organization but aid in payment of services, assets, salaries, and others. Before, ...
... the businesses were required to wait for the payment from the customers’ side.
2. Turnover Threshold for Audit
Present Scenario: Businesses that have a turnover of more than 1 crore are required to get their accounts audited.
After the budget 2020: Sitharaman has proposed to raise the threshold to 5 crores which will reduce a lot of burden on small enterprises. Perhaps, this would be only beneficial for businesses that hold less than 5% of the transaction in cash.
3. GeM or Government-e-Marketplace
GeM is a platform where the procurement of goods and services takes place & is looking forward to enabling & creating a single platform for the same. Finance Minister added that the present government has proposed to increase its turnover to 3 lakh crore.
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