If u are applying sec. 44E i.e. tax @ 8% of contract in case of Civil contract... then, while calculating limits for Tax Audit u/s 44AB turnover of contract business is to b ignored... n remaining to b added to arive at decision for tax audit or not...
eg...
35 lacs from Electrical contracts
5 lacs from Civil Contract
10 lacs from labour
then u are required to add just 35 + 10 = 45 hence tax audit is required and for civil contract income 8% of 5 lacs as taxable income....
other example.....
25 lacs from Electrical contracts
5 lacs from Civil Contract
10 lacs from labour
then u are required to add just 25 + 10 = 35 hence tax audit is not required and for civil contract income 8% of 5 lacs as taxable income....
All the 3 income are treated as business income...
in case of civil contract if ur turnover doesnot exceed 40 lacs buks of accounts not mandatory... if u opt 4 taxing income at 8%....
In other case u are required to prepare buks of account for both labour income as well as electrical contract income saperately....
I hope ur doubts are cleared....