Excise duty pinches small business budget
In the current budget, small businessmen enjoy a tax rebate of income upto Rs 160,000. Besides, interest subvention of 2% was extended for some exports by a year.
February 07, 2011 / 13:10 IST
The incumbent measures allow small businessmen to enjoy a tax rebate of income upto Rs 160,000. Also an interest subvention of 2% was extended by a year for some exports.
However, what hurts the industry the most is the excise duty which had been increased from 8% to 10%. A mandate also dictated that professionals with an income of and above Rs 15 lakh were required to have an account audit. Budget impact on small businessmen:Measure: Interest subvention of 2% extend for some exports, extend interest subvention exports by 1 yearImpact: If you are an exporter you have reason to cheer. Your interest subvention continues.Measure: Excise duty hiked from 8% to 10%Impact: The Government rolled back its stimulus package with an excise duty hike. This might pressure your margins.Measure: Professionals with Rs 15 lakh income need to audit their accounts Impact: If you fall in this slab, you will now need to get your accounts audited. Earlier the criteria of audit was only for registered firms with income over Rs 10 lakhCurrent tax slab | Taxable income (in Rs) | Rate (%) |
| Up to 160,000 | Nil |
| 160,001 - 500,000 | 10 |
| 500,001 - 800,000 | 20 |
| 800,001 upwards | 30* |
| | |
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