Free guide · no login · checked 4 Nov 2026
Self help group enterprise
Start a business with other women through a self help group.
Money to start
Under ₹5,000
Time it needs
10 to 25 hours a week
Risk
Low
Works from home
Yes
Explore
What it is, who it suits, what it can pay, how soon, the upside and the risks.
A self help group (SHG) is 10 to 20 women who save together, get bank loans, and run small businesses: food products, tailoring, dairy, retail. DAY-NRLM supports SHGs with training and credit, and the Lakhpati Didi mission aims for every member to earn at least ₹1 lakh a year.
Who it suits
- Rural and small-town women
- Women starting with little money
- Groups who trust each other
Upside
- Bank loans at low interest
- Training and market support
- Shared risk
Risks to know
- Group disputes
- Repayment discipline
- Choosing a product without a market
What it can pay
We do not publish a number without a reliable source.
What drives it: The business chosen, the group's discipline, bank credit, and market links like melas and ONDC.
Time to first income
A few months: the group saves first, then gets credit.
Assess
Skills, money, tools, hours and registrations you need, and a five question fit check.
Skills
- Any skill the group can sell
- Keeping accounts
Money to start
Small regular savings.
Tools
- Group bank account
- Record books
Time per week
Flexible.
Licences and registrations
Tick each one as you get it. Your ticks stay on this device.
Quick fit check
- 1.Do you know 10 women who want to earn?
- 2.Can the group save every month?
- 3.Is there a product the group can make?
- 4.Will members attend meetings?
- 5.Will the group repay loans on time?
Answer all five to see how well this fits you.
Run
Your first 30 days to the first rupee: set up, price, get paid, find customers, keep records.
Days 1 to 7
Set up
Days 8 to 10
Price it and get ready to be paid
Days 11 to 24
Find your first customers
Days 25 to 30
Record and review
Nurture
Grow and stay compliant: tax, GST, government schemes and the help that fits.
Grow it
- Take larger bank linkage loans
- Join a producer group or federation
- Sell online through ONDC and marketplaces
Tax: Small business on presumptive tax
Return: ITR-4 (Sugam) if total income is up to ₹50 lakh; otherwise ITR-3
- This is business income. With turnover up to ₹2 crore (₹3 crore if at least 95% comes in digitally) you can use Sec 58 of the Income-tax Act 2025 (old Sec 44AD): declare 6% of digital receipts and 8% of cash receipts as profit, or more if you earn more. No detailed books needed.
- If you leave this scheme after using it, you cannot come back to it for the next five years. Choose with care.
- Under the new regime, total income up to ₹12 lakh usually means no tax after the rebate. You still file, to show the income and claim back any TDS.
- Pay advance tax in one go by 15 March if the year's tax is ₹10,000 or more.
- Each member's share of business income is taxed in her hands only if it crosses taxable limits. Ask a Savvy if the group's income is large.
GST on goods
Register once turnover from goods crosses ₹40 lakh in most states (₹20 lakh or ₹10 lakh in some special category states). Selling goods to other states usually needs registration from the start. Composition (1% for traders) keeps it simple up to ₹1.5 crore.
Government schemes that help
- DAY-NRLM and Lakhpati Didi ↗Self help groups for rural women: savings, bank linkage, training and support to earn at least ₹1 lakh a year.
- PM FME ↗35% credit-linked subsidy, up to ₹10 lakh, for micro food processing units, plus help with branding.
- PM Mudra Yojana ↗Loans without collateral for small non-farm and allied businesses: Shishu up to ₹50,000, Kishore up to ₹5 lakh, Tarun up to ₹10 lakh, Tarun Plus up to ₹20 lakh.
- ONDC ↗Open network to sell online through many buyer apps at lower commission.
Make it official
Only what this way of earning needs. Free tools are marked; services are done by a TaxSavvy CA.
Questions
How much can I earn from self help group enterprise in India?
What drives it: The business chosen, the group's discipline, bank credit, and market links like melas and ONDC.
How long until the first income?
A few months: the group saves first, then gets credit.
What do I need to start?
Small regular savings. Registrations: SHG formation with your block mission office, Bank account and UPI, Udyam registration, FSSAI registration.
Which ITR form do I file for this income?
ITR-4 (Sugam) if total income is up to ₹50 lakh; otherwise ITR-3. This is business income. With turnover up to ₹2 crore (₹3 crore if at least 95% comes in digitally) you can use Sec 58 of the Income-tax Act 2025 (old Sec 44AD): declare 6% of digital receipts and 8% of cash receipts as profit, or more if you earn more. No detailed books needed.
Do I need GST?
Register once turnover from goods crosses ₹40 lakh in most states (₹20 lakh or ₹10 lakh in some special category states). Selling goods to other states usually needs registration from the start. Composition (1% for traders) keeps it simple up to ₹1.5 crore.
Which government schemes can help?
DAY-NRLM and Lakhpati Didi, PM FME, PM Mudra Yojana, ONDC. Each scheme has its own eligibility; check the official site before applying.
Sources
Read on 4 Nov 2026. Limits, rates and fees change: check the official site before you rely on them.
- DAY-NRLM (Aajeevika): self help groups and Lakhpati Didi
- Income Tax Department: Income-tax Act 2025 FAQs
This guide is general information from TaxSavvy, not a promise of income. No legal way to earn is guaranteed or instant. Avoid any offer that asks you to pay to join, recruit others or bet.
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