In the Union Budget’19, Finance Minister Smt. Nirmala Sitharaman announced a proposal to apply the reduced 25% tax rate on all companies with turnovers upto Rs 400 crore. Earlier, this rate was applicable to companies with turnovers of upto Rs 250 crore. As a part of the government’s initiatives towards phased reduction of corporate tax rates, the reduced rate will now apply to 99.7% of all enterprises. Loans of up to ₹1 crore are already being provided to MSMEs within 59 minutes through a dedicated online portal.
Further, the startups and investors who file requisite declarations will not be subjected to any kind of scrutiny by the income tax department with respect to valuation of share premium. A mechanism of e-verification will also be put in place to shun any tax scrutiny. A pension scheme for 3 crore traders and shopkeepers with annual turnover < Rs 1.5 crore was also announced in the budget.
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