SMEs to Benefit From Raised Turnover Limit for Compulsory Tax Audit


Union Finance Minister Mr Pranab Mukherjee, has recommended to increase the turnover limit for compulsory tax audit of accounts and for presumptive taxation from Rs 60 lakh to Rs 1 crore, in an attempt to offer a relief to small and medium enterprises (SMEs) with funds raising.

The minister has recommended to exempt capital gains tax on sale of a residential property, in case the sale consideration is used for equity subscription of a manufacturing SME company for the purchase of a new plant and machinery.

Citing the skilled manpower crunch in the manufacture sector and to generate employment, the Finance Minister, has proposed to provide weighted deduction at the rate of 150 per cent of expenditure on skill development in manufacturing sector complying with specified guidelines.