• UGI USER
  • Jun 21, 2024
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INDIA INC. SEEKS TAX RELIEF FOR MIDDLE CLASS AND MSMES

Why in the news?

  • Industry leaders have put forth several key proposals to Finance Minister Nirmala Sitharaman during pre-Budget consultations, emphasizing the need for tax relief for the middle class and reforms benefiting Micro, Small, and Medium Enterprises (MSMEs).
Source:Statesman

Industry proposal:

  • Income tax relief for middle class to boost consumption.
  • Reconsider MSME payment deadline.
  • GST rate restructuring for compliance ease.
  • Promote exports, simplify IT imports.
  • Expand Angel Tax exemption limit to include foreign Venture Capital

 

MSME (Micro, Small, and Medium Enterprises):

MSMEs are classified based on their size and investment in machinery or equipment. They play a crucial role in economic development by contributing to employment generation and industrial production, especially in emerging economies like India.

Angel Tax:

Angel tax is a tax levied on the capital raised by unlisted companies from any individual against an issue of shares in excess of the fair market value. It was introduced to curb money laundering through high premiums on shares issued by startups.

Venture Capital:

Venture capital (VC) refers to funds invested in startups and small businesses with high growth potential. VC firms provide capital in exchange for equity or ownership stakes in the company. They often take on higher risks in the hope of significant returns through successful exits, such as an initial public offering (IPO) or acquisition.