Govt gives tax break to MSMEs, little news for start-ups

FM Jaitley reduced the income tax rates for such enterprises as part of his budget announcements

In a major relief to Medium, Small and Micro Enterprises (MSME) across the country, Finance Minister Arun Jaitley on Tuesday reduced the income tax rates for such enterprises as part of his budget announcements.

Arguing that MSME companies don't receive too many exemptions, FM Jaitley said that they end up paying tax at a higher effective rate as compared to much larger companies. "Therefore, the corporate tax rates for companies with turnover up to Rs 50 crore has been reduced to 25%", he said.

The Finance Minister added that according to government estimates, currently companies with turnover greater than Rs 500 crore