<h1>Union Budget 2020-21 raises MSME audit threshold, defers ESOP tax for start-ups, and extends profit deduction limits.</h1> The Union Budget 2020-21 significantly increased the audit turnover threshold for MSMEs from Rs. 1 crore to Rs. 5 crore, applicable to businesses with less than 5% cash transactions, reducing compliance burdens. This move aims to promote a less cash-dependent economy. Additionally, to support start-ups, tax payment on ESOPs is deferred for five years or until employees leave or sell shares. The turnover limit for start-up profit deductions is raised from Rs. 25 crores to Rs. 100 crores, with the eligibility period extended from seven to ten years, enhancing support for larger start-ups and addressing cash-flow issues for employees.