Financial Assistance and Training
Ensuring timely financial aid for MSMEs is a priority, accompanied by training initiatives to enhance global competitiveness. The budget anticipates next-generation reforms, setting the stage for unprecedented development over the next 5 years. The vision extends beyond mere financial assistance, aiming to equip MSMEs with the tools needed to compete effectively on a global scale.
Tax Reforms – New Regime
The budget introduces new tax slabs, exempting income up to ₹3 lakh and implementing progressive tax rates from 5% to 30% for varying income brackets. These changes signify a shift towards a more streamlined and progressive taxation system applicable uniformly to all categories of individuals, including seniors.
Tax Reforms – Old Regime
Under the old tax regime, exemptions exist for income up to ₹2.5 lakh, with a progressive tax structure ranging from 5% to 30%. Senior citizens, aged between 60 to 80 years of age, enjoy varying exemption limits. This dual tax regime offers flexibility, catering to different income groups.
Special Provisions for Senior Citizens
The budget acknowledges the unique financial needs of senior citizens, providing tax exemption limits based on age. For those aged above 80 years, the exemption limit is ₹5 lakh, ensuring that tax policies consider the specific circumstances of this demographic.
Interim Budget 2024 Highlights:
MSME Sector Overview
– MSMEs constitute 29.15% of India’s GDP till 2021-22, emphasising their crucial role in the economy.
– The government’s commitment to ‘Sabka Saath, Sabka Vikas’ aligns to make India Atmanirbhar Bharat.
Key Announcements for MSMEs:
1. Agricultural Support
– PM Fasal Bima Yojana has assisted 11.8 crore farmers.
– ₹1 trillion corpus for interest-free, 50-year loans to boost R&D in Sunrise sectors.
– 30 crore loans disbursed to women entrepreneurs in India.
3. Boosting Domestic Tourism
– Interest-free long-term loans for domestic tourism.
4. Global Competitiveness
– Training initiatives for MSMEs to compete globally.
Tax Reforms:
1. New Tax Regime
– No tax on income up to ₹3 lakh.
– Progressive tax rates from 5% to 30% for various income brackets.
2. Old Tax Regime
– Exemptions for incomes up to ₹2.5 lakh.
– Gradual tax rates from 5% to 30% for different income levels.
Future Outlook:
– FM Sitharaman emphasises timely financial assistance and next-generation reforms for MSME growth.
– Anticipates 5 years of unprecedented development, paving the way for a developed India by 2047.
Budget 2024 is a comprehensive roadmap, addressing the multifaceted needs of the MSME sector through financial support, training initiatives and tax reforms. The commitment to next-generation reforms and vision for unprecedented development reflects a forward-looking approach towards realising India’s economic potential.
