Page 93 - Quick Insights Book 2022

25 Government Incentives

Central and state government’s together aim to create thrust in
the drive of self-employment in India. A bouquet of Incentives
are available in the country which is helpful at various stages
of any business organization.
Government Incentives are broadly categorized as credit linked
incentives and noncredit linked incentives. These incentives
are extended to the business organizations who are starting a
new business or expansion of their existing business. Chartered
Accountants being financial mentors of business organizations
can guide the entrepreneurs towards the right avenue where
they can get the due benefit. Few credit and noncredit schemes
are listed below

A. Credit Linked Subsidy Schemes (CLSS)
1. MUDRA Loans
2. STAND-UP INDIA

3. Dairy Entrepreneurship Development Scheme (NABARD)
4. Credit Linked Capital Subsidy Scheme for Technology
Upgradation (CLCSS)
5. Credit Guarantee Fund Trust for Micro and Small
Enterprises (CGTMSE)

B. Non-Credit Linked Subsidy Schemes (CLSS)
1. MSME Sector Based Policies
2. Production Linked Incentives

3. Export Related Incentive Policies
4. State Industrial Policies for Manufacturing and Service
Sectors
5. Sectoral State Incentive Policies (IBPS, Electronics, IT- Government
ITeS, aPPAREL etc.)

There are various other schemes (not specifically listed above) Incentives
which can be identified on local, state or central government
websites.

ROLE OF CHARTERED ACCOUNTANTS
A chartered accountant can play an important role in advising
clients on available incentive schemes. A well acquainted
chartered accountant knows the terms and conditions of
incentive schemes and that helps both businesses and the
government.

80 Quick Insights on Professional Opportunities for Chartered Accountants