Budget 2021 small businesses Increased capital base Rs 50 lakh Rs 2 crore

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Image source: PTI

Minister of Finances Nirmala Sitharaman

The government said on Monday that the definition of small business would be revised by raising the base capital to Rs 2 crore from the current limit of Rs 50 lakh. In the Union budget for 2021-2022, the Minister of Finance Nirmala Sitharaman proposed the establishment of an investors’ charter for all financial products.

She said that a rebuilding and asset management company will be set up for the troubled assets of banks, while also saying that the framework of the National Company Law Tribunal (NCLT) will be strengthened.

Hardika Shah, founder and CEO of Kinara, said the finance minister’s proposal for small businesses under the 2013 Companies Act is a welcome move.

“Reducing tariffs on raw materials for several sectors will help move forward. Digital payments, textile parks and the socialization of the concert economy are effective measures to kick-start the pace of last mile digital transformation and financial inclusion, “Shah says.

Telebu’s Satya Yerramsetti said that expanding the definition of small business will boost ease of doing business, ease of compliance, ease of life and pave the way for aatmanirbhar and a resilient India.

Rajiv Kumar, the founder of StoreHippo, said that increasing the turnover limit to qualify as a small business will benefit many small businesses, especially those that suffered losses during the pandemic.

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