return filing

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Bhupesh Duggar (Querist)
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08 December 2016 I am doing Construction business and now I want to file income tax return, my turnover is 20 to 25 lac per year but I will not maintain any books of account. so I may I file return on the basis of 44AD (8%) of total. pls suggest

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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08 December 2016 Yes, you can file itr4S under section 44AD Declare minimum 8% gross turnover as tax.

Bhupesh Duggar

Bhupesh Duggar (Querist)
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08 December 2016 it will attract any service tax liability??

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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21 July 2025 Good question!

If you are doing construction business and your turnover is 20 to 25 lakhs, then:

Service Tax Liability:
Construction services generally fall under service tax (now GST) provisions.

If your aggregate turnover exceeds Rs. 20 lakhs (threshold for service tax before GST), you are liable to register for and pay service tax.

Since your turnover is around 20-25 lakhs, service tax would be applicable if it crosses the threshold.

Note: After GST came into effect (from July 2017), service tax was replaced by GST, so now you would need to consider GST rules.

Income Tax Return Filing:
You can file ITR-4S (Sugam) under section 44AD if you don’t maintain detailed books.

You declare 8% of your turnover as income and pay tax accordingly.

Summary:
Yes, service tax liability arises if turnover exceeds threshold and you are doing taxable construction services.

You must comply with service tax (or now GST) registration and payment rules alongside income tax filing.

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