Budget 2026-27: A Boost for Digital India
The Finance Minister presented the Union Budget for FY 2026-27 with a strong focus on digitizing the MSME sector and simplifying tax compliance. Here is a breakdown of what matters most to businesses in Madhya Pradesh and Chhattisgarh.
1. Income Tax: New Slabs (New Regime)
The government continues to push for the New Tax Regime as the default. The rebate limit under Section 87A has been increased.
| Income Slab | Tax Rate |
|---|
| Up to ₹4 Lakhs | Nil |
| ₹4L - ₹8L | 5% |
| ₹8L - ₹12L | 10% |
| ₹12L - ₹16L | 15% |
| Above ₹16L | 30% |
*Note: Standard Deduction for salaried employees increased to ₹60,000.*
2. MSME Credit Guarantee Scheme 2.0
Collateral-Free Loans: The limit for collateral-free loans under CGTMSE has been raised to ₹3 Crores for manufacturing units.
Digital Credit: A new "Unified Lending Interface" (ULI) will allow banks to approve loans based on GST returns and Tally data, reducing paperwork by 80%.3. GST & Compliance Updates
Input Tax Credit (ITC): Time limit to claim ITC for FY 2025-26 is strictly 30th November 2026. No extensions.
E-Invoicing: The threshold is expected to be lowered to ₹2.5 Crores turnover starting April 1, 2026. *Is your Tally ready?*
Quarterly Returns: QRMP scheme benefits expanded to service providers up to ₹10 Cr turnover.4. Digital Infrastructure for Tier-2 Cities
Special allocation for high-speed internet in industrial clusters like
Singrauli, Korba, and Raigarh to support cloud-based accounting and remote work.
What Should You Do Now?
1. Check E-Invoice Applicability: If your turnover is above ₹2.5 Cr, start testing E-Invoicing in Tally Prime.
2. Update KYC: Ensure your Udyam Registration and GST details are perfectly matched to avail the new credit schemes.
3. Upgrade Software: Old accounting software won't support the new ULI lending format. Upgrade to the latest Tally Prime.Need help understanding how the Budget affects your specific industry? Visit HCS office for a free consultation.