Opinion on Union Budget 2025 by CA Aashish Joshi

For MSMEs, the government has increased threshold limits for classification, enabling more businesses to qualify for priority sector benefits and government schemes. Additionally, rationalization of TDS compliance will reduce operational burdens on small businesses, making tax filing smoother. The time limit for filing updated tax returns has been extended from 2 years to 4 years, allowing more flexibility for rectifications.

Startups also get a boost, as the tax exemption period under Section 80-IAC is extended until March 2030, ensuring continued support for entrepreneurship and innovation.

Furthermore, Budget 2025 introduces several initiatives to promote economic growth, including:

– Enhanced credit through Kisan Credit Cards (KCC) to support farmers
– Credit cards for micro-enterprises to facilitate easy access to credit
– Schemes for first-time entrepreneurs to encourage startup growth
– Focus on tourism for employment-led growth, recognizing its potential to create jobs and stimulate local economies

The most awaited announcement, however, is the New Income Tax Bill, expected to be presented within a week. This could mark a historic overhaul of the tax system, and its details are eagerly anticipated.