Hails tax-free gratuity limit to Rs 30 lakh
Jamshedpur, Feb. 1 :The small and medium scale units of Adityapur, the state’s largest industry hub in adjoning Seraikela-Kharsawan district have welcomed the interim budget presented by Union finance minister Piyush Goyal on Friday.
“We are really happy with the budget. The budget would benefit SMEs. All MSME units in Adityapur and elsewhere registered with the Goods and Services Tax (GST) will get 2 per cent subsidy on interest for loans up to Rs 1 crore. Last year, the Union government had announced a facility for MSMEs whereby they can avail a loan of Rs 1 crore within 59 minutes,” said Inder Agarwal, president of ASIA, the largest and the oldest industry outfit of Jharkhand.
The government announced 2 per cent interest subvention for micro, small and medium enterprises (MSMEs) for loans up to Rs 1 crore. The government has taken many steps to support the MSME sector that provides jobs to crores of people in the country. It recently announced a facility to avail Rs 1 crore loan within 59 minutes.
The government had also increased the share of government procurements from MSMEs through Government eMarketplace (GeM) to 25 per cent, including 3 per cent from MSMEs run by women. Till date, GeM has registered transactions of more than Rs 17,500 crore which has led to savings of 25-28 per cent.
Agarwal also appreciated the tax-free gratuity limit to Rs 30 lakh from Rs 10 lakh. This he said apart from MSMEs would also benefit workers of large scale units based at Adityapur and elsewhere.
An official of Singhbhum Industries Association requesting not to be quoted pointed out that apart from benefits to small and medium enterprises, the announcement of increasing the compensation limit for accidental death while on work is a welcome move. “Currently, the compensation limit for accidental deaths is Rs 2.5 lakh which would be increased to Rs 6 lakh. This will act as a big boon for industrial workers,” he said terming the budget as optimistic for the MSME sector.
An industrialist from Adityapur said that the policies aimed at promoting expenditure efficiency through rationalisation of government schemes and better-targeted delivery, including through direct income transfer schemes, are credit positive when implemented effectively. Relief for middle class home owners and for farmers would be a boost to agriculture, animal husbandry and the realty sector he added.