Budget 2017: Its Impact on MSMEs, Companies and the overall Financial Sector

Finance Minister Arun Jaitley presented the most awaited budget in the recent past. Demonetisation impacted the financial sector as a whole and most people keenly waited to watch what the FM has in store for the financial sector. Here are some announcements that Arun Jaitely made related to the financial sector:

• In order to strengthen the MSME sector, tax rate for companies with an annual turnover of up to Rs. 50 crore to be reduced to 25%.

• Tax for smaller companies with turnover of Rs. 50 crore will be reduced by 5%

• FIPB to be scrapped. FDI will be easier than registering FPI

• Integrated public sector oil major to be created to match global giants

• Computer emergency response team to be set for cyber security of financial sector

• Basic customs duty on LNG reduced from 5% to 2.5% - Petronet LNG to benefit.

• Government will put in place a revised mechanism and procedure to ensure time bound listing of identified CPSEs on stock exchanges. The shares of Railway PSEs like IRCTC, IRFC and IRCON will be listed in stock exchanges.

• MAT credit is allowed to be carried forward up to a period of 15 years instead of 10 years at present

• Start-ups to be taxed for 2 years out of 7 as compared to 5 years earlier.

• Tax exemption rate for banking sector in order to disclose more NPAs increased from 7.5% to 8.5% - A major boost for all the banks

For more budget related highlights, click here