Rule 6F – Upward revision of limit of Rs.1,50,000
Rule 6F of the Income-tax Rules, 1962 provides for books of accounts and other documents to be kept and maintained by persons carrying on certain professions. The proviso to Rule 6F(1) provides that this rule will not apply in relation to any previous year if the total gross receipts from the profession do not exceed Rs. 1,50,000 in any one of the three years immediately preceding the previous year. This limit of Rs. 1,50,000 was enhanced long back in the year 2000 considering the inflationary trends at that point of time.
Considering the prevailing inflationary conditions in India, this limit needs an appropriate upward revision say Rs.5,00,000. Rule 6F may be accordingly amended.
Considering the prevailing inflationary conditions in India, the limit of Rs. 1,50,000 provided in the proviso to Rule 6F(1) needs an appropriate upward revision, say Rs. 5,00,000. Rule 6F may be accordingly amended.
Rule 6F(2)(iv) – requires to be dispensed with
Rule 6F(2) provides the books and other documents to be maintained by the professionals. Sub-clause (iv) of Rule 6F(2) requires maintenance of carbon copies of bills exceeding Rs 25.
Clause (iv) to Rule 6F(2) clause was inserted in the year 1983. Since then, there has been phenomenal change in the working of the businesses. Nowadays, the billing is computerized and the value of transactions being entered into has increased manifold times. Thus, this clause should be dispensed with.
In case the same is continued, the value of minimum bill amount of Rs. 25 should be increased to Rs.1000.
(SUGGESTION FOR RATIONALIZATION OF THE PROVISIONS OF THE INCOME TAX ACT, 1961)