Can budget 2020 bring a drastic change in our economy? However, we have seen our Indian economy has been decreasing since 2008. The UNION BUDGET OF INDIA FOR 2020 was presented by our honorable finance minister Nirmala Sitharaman on 1st February 2020 as the second budget for India. There was an Economic survey of 2019-2020 prepared under Krishnamurthy Subramanian who is the Chief Economic Advisor (CEA) was presented to the government of India. This survey is also presented by CEA during the press meet at parliament.
A quick highlight of Economic survey 2019-2020 from an industrial growth point of view is as follows
- The survey projects India’s growth at 6-6.5% in the next fiscal year starting from 1st April 2020.
- The survey provides facts to show that India’s GDP figures are genuine.
- The industrial growth for the current year has been listed as 2.9% while the agricultural growth is 2.8%.
So now what we get from UNION BUDGET 2020 let’s take a look at key points.
- For all startup companies all over India has good news from budget 2020. Our finance minister mentioned in her speech that as part of efforts to boost startups, the tax burden on employees due to tax on employee stock options would be deferred by five years or till they leave the company or when they sell it.
- The Finance minister has also mentioned in her speech that several measures were planned to increase the base for knowledge-driven enterprises.
- Budget 2020 has some good news for individual taxpayers as well a new regime of personal income taxpayers to pay tax at a reduced rate of 10 percent for income between Rs 5 lakh and 7.5 lakh against the current rate of 20 percent. Those with income between Rs 7.5 lakh to 10 lakhs to pay tax at 15 percent against the current 20 percent. Those with income between Rs 10 to 12.5 lakh to pay tax at 20 percent, down from 30 percent.
- Moreover, another great news is Tax relaxation for startups with turnover below Rs.100 crores for up to 10 years, this means startups don’t have to pay tax whose annual turnover is Rs.100 crores till 10 years, this will be a great relief for all startup’s across India.
WHAT MSME’s get from BUDGET 2020?
MSME (Ministry of Micro, Small and Medium Enterprises) In earlier budget an audit was conducted for small traders and MSMEs whose annual turnover was up to Rs. 5 crores. From Budget 2020 finance minister has removed this auditing for MSME whose annual turnover of Rs. 5 crores, this will get applied for those businesses which have 5% of transaction in cash. This will encourage all startups to accept digital payments which will help reduce compliance burden. Moreover, the MSME loan restructuring scheme will be extended till March 2021.
WHAT ESOP gets from BUDGET 2020?
ESOP (Employee Stock Ownership Plan) basically allows those employees who are selected as the best employee from a company and offers an ownership interest in an organization. This means employees can avail of the benefit of organization profit-sharing plans or it may be bonuses and also employees have the right who could avail of these options. So now ESOP tax payments are deferred for 5 years or till they leave the company or till they sell their shares.
ESOP will be very helpful for employees in a way that they can be a part of company success. Also, employees can gain wealth benefits by selling profitable shares that have been acquired at lower rates.
WHAT IS EASEBUZZ TAKE ON BUDGET 2020?
Nowadays we have seen new age technologies like artificial intelligence, IoT (Internet of things), Quantum tech and data analytics, robotics, where the government has decided to promote that will help India to be a tech-nation in the coming future. Our Finance Minister Nirmala Sitharaman has decided to get special attention during her budget 2020 speech. Data management and protection will play a key role to safeguard citizens’ data from cyber-breaches. Additionally, the implementation of intelligent data management platforms will help achieve positive outcomes from the data.”
Easebuzz being an E-commerce payment gateway company is providing numerous solutions to small and medium business sectors to grow their business in fintech domain and education domain. In the fintech domain, Easebuzz core product which is payment gateway solves online payment problems and also being an integrated payment link solution, which helps customers to make payment via a link. In the education domain easebuzz provides ERP solutions to various education institutions to make their work easier and accurate in a timely manner. Easebuzz also provides a Sales CRM software which is a data management platform to manage the customer data in an efficient manner. Easebuzz is also a PCI DSS compliant, COMODO SSL certified which secures all the data. In this way, Easebuzz will keep contributing more and help India to be tech-nation in the coming future.