section 143(1)(a) of income tax act

" A civil Contractor file his ITR 4  u/s 44AA for last few years and his income not exceeding Rs. 70 Lakhs... In AY 2017 - 18 his income near by 88 lakhs... But, He declare income Above 8%....  Is the account under Tax Audit...? or No need...? Can He file without Tax Audit...?
 

Tax audit u/s. 44AB not applicable. He can file return under regular mode without audit report.

Thank You for the reply Sir...

Can I use code 0501 - Civil Contractor...?

Dear Sir.,

The Same way (Civil Contractor) a "CIVIL ENGINEER - B.E - CIVIL" can follow the same way as Above or Not...?

Can I use code 0501 - Civil Contractor...?
 

Yes.

" The Same way (Civil Contractor) a "CIVIL ENGINEER - B.E - CIVIL" can follow the same way as Above or Not..
 

No. Depends upon nature of activity........ otherwise Sec. 44ADA will be applicable.

Sir.,

Thank you for the clearing my doubt...

In case the Engineer file his ITR in 5 to 6 AY years u/s 44AA but 8% profit then what is the future problems from ITD???

(Also I discussed this way to the Civil Contractor who is An Engineer. But, He is not accept my opinion)

No problem seen if nothing hidden, or manipulated......

As I said earlier.... there is distinction between contractor or construction business and professional services provided by civil engineer. So depending upon the nature of activity section 44AD or 44ADA would attract.

Thank you for the reply...

Please explain this. I'm not understanding.

Otherway,

If he is working as contractor, can adopt sec. 44AD; but if as consultant, go for sec. 44ADA....

Good Evening Mr Dhirajlal Rambhia Sir.,

I have Two query.. Please give Your reply with solutions...

1. A Person is doing following works...

i) Land Registration consulting work (no office) ii) Land Buying/Sale based commission iii) House sale broking also Rental iv) House and Land related registration, Documentation, Patta and Chitta works also with registrer office works for the Land and House related...

No office only directly works with customers or some of the same works related persons..

My Query.,

How to define his income?

Which ITR will be suitable? and Business Code...?

It's consulting work or Business work?

Please give Your reply...

Another one also I discussed with you about Partnership Account. Now, I have a doubt for Partner related...

A Individual having one workshop for "Labour Work" and Also a Partner in a Partnership Firm...

In FY 2015-16 :

i) In individual Business Income (Billing) Rs. 135,900. (Also some works received from Partnership Firm)

ii) In Partnership Firm :

    Profit Share Rs. 32038

    Remuneration Rs. 184,000

    Refund (share) claimed Rs. 3195...

In FY 2016-17 :

i) In individual Business Income (Billing) Rs. 148,935. (Also some works received from Partnership Firm)

ii) In Partnership Firm :

    Profit Share Rs. 149130.50

    Remuneration Rs. 184,000...

    IT Payment (share)  Rs. 39020...

As per above details how to I deal this account?

Please reply Sir...

" How to define his income?

Which ITR will be suitable? and Business Code...?

It's consulting work or Business work?"

'0703'  Service Sector [Consultancy services]

ITR 3 with accounts maintained..

Originally posted by : Dhirajlal Rambhia
	" How to define his income? Which ITR will be suitable? and Business Code...? It's consulting work or Business work?"   '0703'  Service Sector [Consultancy services] ITR 3 with accounts maintained..

Thank you for the reply Sir...

But, He don't have any books of accounts...

Generally in such consultancy work, 75% is net profit, while 25% can be estimated as expenditures........ accordingly make financial statement and proceed...

In the second query......... profit share would be taxfree........

While remuneration would be taxable in the hands of partner.....

Originally posted by : Dhirajlal Rambhia
	Generally in such consultancy work, 75% is net profit, while 25% can be estimated as expenditures........ accordingly make financial statement and proceed...

Sir.,

He want file his ITR... Now, I'll be file his ITR n ITR 3 without any documents for receipts and Expenditures. Then,

How to prepare F.Statements like Balance Sheet and Profit & Loss account?

How many (%) percentage shown the profit as 8% or 50%...?