Union Budget 2025: Key Takeaways for MSMEs

Introduction

The Union Budget 2025 has introduced several pivotal changes aiming to boost the MSME sector. With a focus on credit access and simplified compliance, this budget is poised to be a game-changer.

Key Highlights

• Credit Guarantee Scheme: The corpus has been increased by ₹9,000 Cr, enabling additional collateral-free credit.
• Tax Presumptive Limits: The turnover limit for presumptive taxation has been raised to ₹3 Cr, provided cash receipts are less than 5%.
• Digital Public Infrastructure: New support for entity DigiLocker will facilitate easier KYC and document sharing for businesses.

Impact on Compliance

The reduction in compliant timelines for payments to MSMEs (Section 43B(h)) remains a critical point of discussion. Businesses must ensure payments within 45 days to avoid tax liabilities.

Conclusion

For MSMEs, the path ahead is paved with opportunities, provided they adapt to the digital-first compliance ecosystem.