Prasad Shetty, Pune

I would like to suggest the finance minister to increase the tax auditlimit for Business from (turnover) Rs.40 Lakhs to Rs 4 Crores andIncrease the Tax audit limit to Professionals from( revenue) Rs 10Lakhs to 1 Crores.
Explaination to above: There has been Change in every ones life as also with this world withno exception to Income tax law also. If look at Income tax act therehas increase in Basic Exemption limit from Rs.50,000 to Rs.1,60,000.year on year there is change in Cost Inflation Index for Capital gainsfrom 100 to 632. there has been changes in Max marginal rate from 40%to 30%. these are the changes which we have seen from year on years inour tax law. But if we look at the Tax Audit limit for both Business and Professionthere has been no change in there limit. My question is WHY to ourFinance Minister??????.
If we look at number of assesses who file the Return there has beenenormos increase in the number as also the revenue what govtgenerate from tax. but still no increase in Tax audit limit.
Sir In My article-ship period I happened to visit to Income tax officewith my friend who run business where I saw many CA's sitting outsideIncome tax office and ready to prepare the Tax audit report with in 4hours and without checking books of accounts for a small fees of Rs.2500, my friend is able to get a Tax audit report. which is false.
When i questioned my friend he said it very rare that all our returnget scrutinized and returns always remains in file and goes onincreasing and increasing and never get checked. My dear Finance Minister this is what happening from years and years. Good qualified professional are doing such act for a sum of rs.2500 to Rs.5000.
Being a CA it really pains. I don't want my fellow members to do suchthings. I know there is large lobby of CA( especially in centralcouncil) who are in Practice who do want to increase these limitbecause these CA's fear of loosing there revenue. I want you to takea bold step and Increase the limit as stated above. I bet you sir, what ever tax audit report u get are not real inpractice. the business men and professional come to CA;s and tell Iwant pay tax rate at a such and such amount and audit report startsfrom tax rate.

From Income tax department side how many tax audit report getscrutinized very little from dept also. Solution for above: Increase the tax audit limit for Business from Rs.40 Lakhs to Rs 4Crores and Increase the Tax audit limit to Professionals from Rs 10Lakhs to 1 Crores.
Bring presumptive tax rate of 20% for business below (turnover)Rs.4crores and Professionals below revenue rs.1 crores. and ask thesepeople to maintain the books with respect to sales or revenue and allsection relevant to section AE and AF should apply here also.
By doing this you will get good tax audit report by good professional,Income tax department will be able to scrutinize may tax audit report and there will be high probability that business and professional will be loyal in paying tax rate at 20%. when there is change in every section, even you must change the limit also. Being a CA I myself don't know from when this limit is stagnant.

Regards,
Prasad Shetty
ca.prasadshetty08@gmail.com