Budget 2012: No capital gains tax for SMEs on sale of residential property

NEW DELHI: In order to augment funds for SMEs, Finance Minister Pranab Mukherjee 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.

Presenting the Union Budget, Mukherjee added that for SMEs, the turnover limit for compulsory tax audit of accounts as well as for presumptive taxation is proposed to be raised from Rs 60 lakh to Rs 1 crore.

"The Small and Medium Enterprises (SMEs) are the building blocks of our economy," he said in his speech.

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