Life will be easier for small enterprises earning annual revenue up to Rs.60 lakh or a independent professional with gross receipts up to Rs.15 lakh as they no more have to get their accounts audited.
According to the Budget 2010-11, a businessman will not have to get his accounts audited if his sales are less than Rs.60 lakh a year. Earlier, the limit was Rs.40 lakh.
Likewise, for an independent professional, it has been revised upward from Rs.10 lakh in the Budget proposals.
Businesses with annual revenue of less than Rs.60 lakh can now just pay tax assuming an income of 8 per cent of turnover, without even having to maintain books of accounts. While chartered accountants would hardly stop to bother about micro-enterprises of this size, I believe that this scheme is a serious boost to entrepreneurship. The grind of books and audits is a major drag on starting entrepreneurs. Under this scheme, you may not even need an accountant.