🚀 Medial Secures Investment on Shark Tank India - Fueling the Future of Professional Social Networking. 🔥
Login

News on Medial

Related News

Key highlights of the Union Budget impacting the new-age economy

EntrackrEntrackr · 1y ago
Key highlights of the Union Budget impacting the new-age economy
Medial

Finance Minister Nirmala Sitharaman on Tuesday tabled the Union Budget 2024-25, which includes provisions for MSMEs, startups, ease of doing business, FDI, and long/short-term gains, among other areas. Here are the key highlights from the budget that will have a significant impact on Indian startups, founders, employees, and MSMEs. ➤ To boost the Indian startup ecosystem and entrepreneurial spirit, the government has abolished the angel tax for all classes of investors with the effect from April 1, 2024. ➤ To facilitate employment, skilling, and other opportunities-focused on MSMEs, the government passed a central outlay of Rs 2 lakh crore. ➤ To enhance the ease of doing business, the government plans to simplify the rules and regulations for FDI and overseas investments. Additionally, the establishment of the IBC has been a great success that led to the resolution of over 1,000 companies, resulting in a direct recovery of more than Rs 3.3 lakh crore. Moreover, The Centre for Processing Accelerated Corporate Exit (C-PACE) will extend its services to facilitate the voluntary closure of LLPs, reducing the closure time. ➤ For the development of the space economy, the government has plans to expand it 5-fold in the next 10 years and set up a Rs 1,000 crore venture capital for the same. ➤ The budget includes the development of climate finance for enhancing the availability of capital for climate adoption and mitigation which will support the achievement of the country’s climate commitments and green transition. ➤ The 2025 budget has raised the long-term capital gains tax (LTCG) on both financial and non-financial assets to 12.5%, up from the current rate of 10%. Additionally, the short-term capital gains tax (STCG) on certain assets has been increased to 20%. ➤ To attract foreign capital for development needs, the corporate tax on foreign companies has been reduced to 35% from 40% in the budget 2024. ➤ As per the existing provision, Indian professionals working in multinational companies often receive ESOPs and invest in foreign assets, and non-reporting these small foreign assets can lead to penalties under the Black Money Act. The new budget suggests that non-reporting of movable assets up to Rs 20 lakh will no longer be penalized. ➤ The new budget introduces significant changes to the buyback process. It proposes that income from share buybacks by companies be taxed as dividends for the recipient investor, instead of the current regime where the company pays additional income tax. The new provision will be applicable from 01st October 2024.

Download the medial app to read full posts, comements and news.