Take a fresh look at the structure of the I.T.Act

Sir,
I am a chartered accountant in practice since 1981 at Palakol in A.P.
I think it is time that a fresh look was taken at the structure of the I.T.Act and also some of its provisions.
The following are what I expect from the budget and the Finance Bill.

1. The work of simplification of IT Act should be resumed. The simple acts of shifting the computational provisions relating to each head of income , the provisions relating to deductions, shipping companies, FBT and TDS to separate schedules to be inserted at the end of the Act and deletion of inoperative provisions with a suitable amendment of s.297 of the I.T. Act incorporating a saving clause regarding actions already taken or rights vested or duties not performed will go a long way to reduce the size of the I.T. Act.
2. The quantum limits in ss.40A (3), 269SS and 269 T and the TDS provisions, fixed long ago, have remained unchanged. Consider the plight of single truck and two- truck owners in the context of s.40 A (3) and s.194 C (limits fixed in 1988) in the back drop of increase in the operating costs such as diesel several times over since then. [Though, Second Proviso to Cl.(i) of s.194 C (3) gives some relief , it is restricted to cases of sub-contractors only.] Or consider the measly limit of Rs.2500 p.a u/s. 194 H as against the basic exemption limit of Rs.1,50,000 for individuals. It is high time, in view of the relentless inflation, that these quantum limits were suitably inflation adjusted and for this purpose the Cost Inflation Index vide Explanation (v) to s.48 can be adopted.
3. Similarly, basic exemption limits and ceilings for deductions u/ss.80C , 80 D etc., should be inflation adjusted
4. Normally, the incentives given to exporters and Industries benefit mostly the big ticket investors / business houses. Take for instance s.80 IB (10) providing for 100 % exemption to housing projects (approved before the prescribed date ) with an area more than one acre. There should be a linkage between the quantum of tax benefit / incentive with the fixed capital invested and / or additional jobs created with an appropriate multiplier so that the benefits reach the larger sections of the Society.
with regards
P.V.R.Prabhakar