Most of the changes proposed in the direct tax policies by the Finance Minister are in the favour of Small & Medium Enterprises. After good 25 years, there was a change in the turnover limits for compliance to audit of accounts u/s 44. The companies with an annual turnover of more than Rs. 60 lakhs will be required to get their accounts audited. The limit has been changed from the earlier figure of Rs. 40 lakhs. This will bring some respite to the small businesses, reducing the effort required to comply to the taxation norms and would also save the money being paid as audit fees.

Also the change in the taxation slabs, which will largely impact the individuals as well as the businesses has come in as a good news. The total savings due to the change in slabs would be almost Rs. 55000. But that’s not all. This will be supplemented with the savings due to the reduction in the surcharge from the existing 10% to 7.50% However on the other side, the government has increased the MAT from the current 15% to 18%. Along with this, the government has pushed the tax-payers to comply with the timely payments of their income-taxes.

More to follow…