IT for Contractors?

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....

thanx a ton Megha, u ve also removed my confusion on the same matter

Thnx Ansari.... 4 appreciating...

Dear Sir,

Whether we can file the Tax returns for the previous year say 2007.08 and get the refund if it is applicable and also want to have update on TDS deducted for catering contractor and other contractor like security, taxi hiring, consultants.

Regards,

P.Bhagawan