Union Budget 2022 Highlights: Features and Advantages for Start-ups and MSMEs


February 4: Smt. Nirmala Sitharaman, Financial Minister, declared the Union Budget 2022-23 yesterday. The Budget 2022-23 makes it easier for entrepreneurs and Micro, Small, and Medium Enterprises to do commerce (MSMEs). The following are the important highlights announced in the Union Budget 2022 for Micro, Small, and Medium Enterprises and start-ups:
Measures for MSMEs in the Union Budget 2022 highlights
The Udyam, NCS, e-Shram, and ASEEM websites will be linked, and their range will be expanded to function as platforms holding live, dynamic databases that provide Business-to-business, G2C, and Business – to – business services.
These activities will focus on skill development, credit assistance, and hiring to better regulate the economy and provide entrepreneurship for all.
The Emergency Credit Line Guarantee Scheme (ECLGS) would be extended till March 2023, and its assurance cover will be increased by Rs.50,000 crore to a maximum cover of Rs.5 lakh crore, with an emphasis on hospitality and associated industries.
With the injection of the necessary money, the Credit Guarantee Foundation for Micro and Small Enterprises program would be redesigned. It will provide additional credit of Rs.2 lakh crore to micro and small businesses while also increasing job prospects.
The Raising and Accelerating Micro, Small, and medium Enterprises (RAMP) program would be implemented over 5 years with a budget of Rs.6,000 crore. RAMP will assist the MSME sector is becoming more competitive, resilient, and effective.
Updates for Start-ups in the Union Budget 2022
The start-ups will be encouraged to enable ‘Drone Shakti’ through various Drone-As-A-Service applications (DrAAS). In this approach, the needed skilling programs will begin in select ITIs across all regions.
Defense R&D will be made available to start-ups, businesses, and universities, with 25% of the defense R&D budget set aside.
NABARD will allow the creation of a fund with composite capital, generated through the co-investment approach, to finance agricultural and rural firms important to the agricultural goods value chain.
These firm’s operations will include farm-level leasing of farm equipment, assistance for FPOs, and innovation, including IT-based assistance.
Start-ups Will Receive Tax Benefits in the Union Budget 2022
Qualifying start-ups founded before March 31, 2022, received a tax reduction for three years in a row, out of a total of 10 years from the date of formation. To give such a tax advantage in light of the COVID epidemic.
The finance minister recommended prolonging the time of registration of the qualifying start-up by one year, i.e., up to 31.03.2023.
To create an internationally relevant corporate environment, the government implemented a 15 percent tax system for new merged domestic manufacturing enterprises.
The finance minister recommended extending the deadline for beginning producing or manufacturing under Section 115BAB by 1 year, from March 31, 2023, to March 31, 2024.
Last year, the administration extended the customs duty waiver for steel scrap by another year to assist MSME secondary steel producers.
Every Indian citizen must be aware of the Union Budget 2022. Furthermore, for a quick summary, you can find all of the main points of the Union Budget 2022 highlights with Flickonclick.
Flickonclick provides you all such latest updates, trending blogs, recent news and much more.
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