Tax for small firms reduced to 25%

Jaitley reduced income tax for small companies to 25% having annual revenue of up to Rs 50 crore

Micro, small, and medium enterprises bore the brunt of demonetisation. MSME businesspersons being traditional support base of Rashtriya Swayamsevak Sangh, its affiliated organisations put sustained pressure on Finance Minister Arun Jaitley to give relief to the sector.

In his Budget, Jaitley reduced income tax for small companies to 25 per cent having annual revenue of up to Rs 50 crore. 

"Going by data of assessment year 2015-16, there are 694,000 companies filing returns, of which 667,000 fall in this category. Therefore, percentage-wise, 96 per cent of companies will benefit from this lower taxation," Jaitley said, adding the revenue foregone due