Reeling under the pressure of demonetisation, which has weeded out 86% of the country’s bank notes, Arun Jaitley, while presenting his Budget on Wednesday focused on startups, and the small and medium enterprises. It meant several tax SOPs for the sector. Jaitely said that corporate tax has been reduced from 30% to 25% for those with an annual turnover for less than Rs 50 crore. He announced an increase in the credit guarantees for this sector from Rs 1 crore to Rs 2 crore. Credit flow towards the MSME sector has been thinning due to a surge in non performing assets (NPA) in banks.

Source: Hindustan Times February 01, 2017 08:27 UTC