Turnover Limit for Compulsory Tax Audit Raised to Rs.1 crore

In order to augment funds for SMEs (Small and Medium Enterprises), theUnion Finance Minister Shri Pranab Mukherjee, in the General Budget 2012-13 presented in LokSabha here today, has proposed to exempt capital gains tax on sale of a residential property, if the sale consideration is used for subscription in equity of a manufacturing SME company for purchase of new plant and machinery.

Further, considering the shortage of skilled manpower in the manufacture sector and in order to generate employment, the Finance Minister, Shri Mukherjee has proposed to provide weighted deduction at the rate of 150% of expenditure incurred on skill development in manufacturing sector in accordance with specified guidelines.

Providing relief to a large number of SMEs, it has been proposed to raise the turnover limit for compulsory tax audit of accounts as well as for presumptive taxation from Rs. 60 lakh to Rs. One crore.

Source : Equity Bulls

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