{"id":5075,"date":"2019-03-16T08:44:00","date_gmt":"2019-03-16T08:44:00","guid":{"rendered":"\/blog\/?p=5075"},"modified":"2025-02-04T14:46:49","modified_gmt":"2025-02-04T09:16:49","slug":"impact-of-budget-2017-on-business-finance-sector","status":"publish","type":"post","link":"https:\/\/tata-blog.osian.dev\/blog\/loan-for-business\/impact-of-budget-2017-on-business-finance-sector\/","title":{"rendered":"Impact of Budget 2017 on Business Finance Sector"},"content":{"rendered":"\n

The\nUnion Budget 2017-18 was presented by the Government of India on 1st<\/sup>\nFebruary 2017 for the financial year starting 1st<\/sup> April 2017. The Budget\nwill indeed create a huge impact on numerous sectors in India, the business\nfinance sector being one of them. <\/p>\n\n\n\n

Know More<\/a><\/div>\n\n\n\n

Impact on small busi<\/em>nesses<\/em><\/strong><\/p>\n\n\n\n

Micro,\nSmall and Medium Enterprises (MSMEs) contribute to the economic growth of India\nto a large extent. This sector offers employment opportunities and also\ncontributes to the exports of the country. Being the backbone of the economy,\nMSMEs received a great impetus in the Budget 2017-18. Earlier, MSMEs had to pay\nhigher taxes. However, the Budget proposed to reduce income tax of small companies\nwith an annual turnover of up to INR 50 crore by 5%. This indicates that the\nexisting income tax rate of 30% will be reduced to 25%. It is estimated that\naround 6.67 lakh companies in India will benefit from this move. <\/p>\n\n\n\n

The\nGovernment of India has also decided to double the lending target of banks under the Pradhan Mantri MUDRA Yojana scheme to INR 2.44 lakh crore. This will result in enhanced\naccessibility of loans to the MSME sector.<\/em><\/p>\n\n\n\n

Tax breaks for startup companies<\/strong><\/p>\n\n\n\n

The\nBudget 2016-17 introduced income tax exemptions for startups. The current Budget further increased\nthe period of profit-linked deductions available to the startups from the existing five years to a\nperiod of seven years. It is, however,\nimportant to note that tax breaks are applicable\non the profits made by startups for three years. Such a benefit may be availed of only by startups recognized\nby the DIPP (Department of Industrial Policy & Promotion). Due to such an advantage, entrepreneurs will\nbe encouraged to set up their ventures. Entrepreneurs may avail of finance from\nbanks or Non-Banking Financial Companies (NBFCs) and establish their business\nwithout any financial constraints.<\/p>\n\n\n\n

Digitalization<\/strong><\/p>\n\n\n\n

The Budget also proposed numerous changes in order to transform India into a digital economy. After the demonetization move, the Budget further aims at converting India to a cashless economy. Those merchants using the government-aided BHIM Aadhar-based mobile wallet are eligible for cashback schemes. Further, all government receipts will be made available through the Internet. To further boost cashless transactions, Small Industries Development Bank of India (SIDBI) is set to refinance businesses based on their transaction history. This will benefit the business finance sector largely, especially in the rural and semi-urban parts of India. <\/p>\n\n\n\n

The Budget will indeed strengthen the economy of India even further. Moreover, through business loans, firms may benefit from competitive rates of interest, lower fees and charges, minimal documentation requirement, flexible eligibility criteria, quick loan disbursal, flexible repayment plans, besides many others. Enterprises may, therefore, apply for business loans<\/a> and deploy the disbursed amount to fund their business activities, thereby bringing about entrepreneurial growth and development.<\/p>\n\n\n\n

Apply Now<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

The Union Budget 2017-18 was presented by the Government of India on 1st February 2017 for the financial year starting 1st April 2017.<\/p>\n

Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":5086,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[26],"tags":[],"class_list":["post-5075","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loan-for-business"],"yoast_head":"\nImpact of Budget 2017 on Business Finance Sector - TATA Capital Blog<\/title>\n<meta name=\"description\" content=\"The Union Budget 2017-18 introduced tax cuts for MSMEs, increased funding for startups, and promoted digital payments, boosting growth in the business finance sector in India.\" \/>\n<meta name=\"robots\" content=\"noindex, nofollow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Impact of Budget 2017 on Business Finance Sector - TATA Capital Blog\" \/>\n<meta property=\"og:description\" content=\"The Union Budget 2017-18 introduced tax cuts for MSMEs, increased funding for startups, and promoted digital payments, boosting growth in the business finance sector in India.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.tatacapital.com\/blog\/loan-for-business\/impact-of-budget-2017-on-business-finance-sector\/\" \/>\n<meta property=\"og:site_name\" content=\"TATA Capital Blog\" \/>\n<meta property=\"article:published_time\" content=\"2019-03-16T08:44:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-02-04T09:16:49+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.tatacapital.com\/blog\/wp-content\/uploads\/2020\/01\/impact-of-budget-2017-on-business-finance-sector.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"770\" \/>\n\t<meta property=\"og:image:height\" content=\"348\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Tata Capital\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Tata Capital\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/loan-for-business\/impact-of-budget-2017-on-business-finance-sector\/\",\"url\":\"https:\/\/www.tatacapital.com\/blog\/loan-for-business\/impact-of-budget-2017-on-business-finance-sector\/\",\"name\":\"Impact of Budget 2017 on Business Finance Sector - 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