Budget Highlights For Startups And Entrepreneurs

The 2015 Budget is one of the most anticipated budgets in recent history. The 2015 budget was highly anticipated as it was a full year budget filed by the pro-business Modi Government and because it has the potential to kickstart the lagging Indian economy. The 2015 budget was neither a huge win nor a huge loss for most existing businesses in India. However, the 2015 budget did have certain aspects that could provide a boost to Indian Startups and Entrepreneurs. In this article, we look at the 2015 Budget Highlights (with pictures) from a startup or new entrepreneur perspective.

Self-Employment and Talent Utilisation (SETU) Program

SETU Program - Budget 2015

The 2015 Budget lays the foundation for (SETU) Self-Employment and Talent Utilization program. SETU will be established as Techno-financial, incubation and facilitation programme to support all aspects of a start-up business in India. The 2015 Budget has set aside Rs.1000 crores in NITI for the implementation of SETU. NITI Aayog or National Institution for Transforming India (NITI) Aayog is a policy think-tank of Government of India that replaces Planning Commission and aims to involve the states in economic policy-making in India.

AIM Platform: ATAL Innovation Mission (AIM)

AIM Platform Budget 2015

The 2015 budget has also established the AIM Platform or Atal Innovation Mission (AIM). AIM is established within the National Institution for Transforming India (NITI) to provide Innovation Promotion Platform involving academicians and drawing upon national and international experiences to foster a culture of innovation, research and development. The 2015 budget has earmarked Rs.150 crores for the AIM Platform.

Mudra Bank for Small Business Loans

Mudra Bank Budget 2015

The 2015 Budget has proposed the creation of Micro Units Development Refinance Agency (MUDRA) Bank, with a corpus of Rs.20,000 crores, and credit guarantee corpus of Rs.3,000 crores. MUDRA Bank will be responsible for refinancing all Micro-finance Institutions which are in the business of providing small business loans through a Pradhan Mantri Mudra Yojana. In providing bank loans, MUDRA Bank will accord priority to SC/ST enterprises.

Corporate Tax to be reduced to 25%

Corporate Tax Budget 2015

The 2015 Budget has announced the reduction of the corporate tax rate from 30% to 25% over the next four years, starting from the next financial year. It is expected that the corporate tax rate will be reduced in a phased manner to 25% over the next four years. It is expected that the reduction in corporate tax rate will will lead to higher level of investment, higher growth and more jobs. The corporate tax rate reduction of 25% will also be accompanied by the removal of various kinds of tax exemptions and incentives for corporate taxpayers.

EBiz Portal for making Starting a Business Easy

EBiz Portal Budget 2015

The 2015 Budget has put forward the creation of an expert committee to examine the possibility and prepare a draft legislation where the need for multiple prior permission can be replaced by a pre-existing regulatory mechanism. This will facilitate India from becoming an investment destination. Further, the 2015 Budget also talks about strengthening the EBiz Portal to make starting a business easy in India. To start a business in India easily, visit IndiaFilings.com.

Central Excise and Service Tax Registration in 2 Days

Service Tax Registration Budget 2015

To making starting a business and getting the registrations easier, the 2015 budget announced that central excise and GST registration will be completed within two working days.

ESI and EPF Optional for Employees

ESI EPF Optional for Employees - Budget 2015

The 2015 Budget has announced that the Government will bring enabling legislation to allow the employee to opt for EPF or New Pension Scheme. For employee’s below a certain threshold of monthly income, contribution to EPF will also be optional, without affecting employers contribution. Further, employees will also be able to choose between Employee State Insurance (ESI) cover and other health insurance covers.

The complete 2015 Budget Highlights can be downloaded here: 2015 Budget Highlights Complete.

The complete 2015 Budget Speech can be downloaded here: 2015 Budget Full Speech Document.

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Frequently Asked Questions

Common questions about 2015 Budget for Startups and Entrepreneurs in India.

The SETU program is a techno-financial, incubation, and facilitation program established by the 2015 Budget to support all aspects of start-up businesses in India. The government has set aside Rs. 1000 crores for NITI Aayog to implement this program.

The AIM Platform or Atal Innovation Mission is an initiative launched in the 2015 Budget to provide an innovation promotion platform involving academicians and drawing upon national and international experiences. It aims to foster a culture of innovation, research, and development in India. The government has earmarked Rs. 150 crores for this platform.

The Mudra Bank or Micro Units Development Refinance Agency is proposed in the 2015 Budget to refinance all microfinance institutions that provide small business loans. It will have a corpus of Rs. 20,000 crores and a credit guarantee corpus of Rs. 3,000 crores, with priority given to SC/ST enterprises.

The 2015 Budget announced a reduction in the corporate tax rate from 30% to 25% over the next four years, starting from the next financial year. This is expected to lead to higher investments, growth, and job creation. However, it will be accompanied by the removal of various tax exemptions and incentives for corporate taxpayers.

The EBiz Portal is an online platform that aims to make starting a business in India easier. The 2015 Budget proposed strengthening this portal and examining the possibility of replacing multiple prior permissions with a pre-existing regulatory mechanism to facilitate investment in the country.

According to the 2015 Budget, the registration process for central excise and GST (Goods and Services Tax) will be completed within two working days, making it easier for businesses to obtain these registrations.

The 2015 Budget announced that employees below a certain monthly income threshold would have the option to contribute or not contribute to the Employees' Provident Fund (EPF) without affecting the employer's contribution. Additionally, employees would be able to choose between the Employees' State Insurance (ESI) cover and other health insurance covers.

The proposed reduction in the corporate tax rate from 30% to 25% over the next four years is expected to encourage higher levels of investment, economic growth, and job creation in the country. This move aims to make India a more attractive destination for businesses and investors.

The 2015 Budget introduced several initiatives to support small businesses and entrepreneurs, such as the SETU program, Mudra Bank for small business loans, simplification of registration processes, and the option to choose EPF and ESI contributions. These measures aim to create a more conducive environment for starting and running a business in India.

NITI Aayog or the National Institution for Transforming India is a policy think-tank that has replaced the Planning Commission. The 2015 Budget has allocated Rs. 1000 crores to NITI Aayog for the implementation of the SETU (Self-Employment and Talent Utilization) program, which supports various aspects of start-up businesses in India.