russell sarkar ( Lawyer ) 07 December 2009

independant civil contractor

what is the procedure to file income tax return of an independant civil contractor (the contractor takes contract of building houses) . Recently he got a contract from a private ltd co. to build its office. He got his contractual money for building the house . The money was paid to him by the company after deduction of tax. So he now wants to file income return

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3 Replies

Raj Kumar Makkad (Adv P & H High Court Chandigarh) 07 December 2009

A contractor shall also file his income tax return as all other businessman/professional file. He should open his VAT account also along-with PAN no. and at the appropriate time, should file his return.

Chandargi B B (CA) 07 December 2009

If his turnover is less than 40 Lakhs,he may opt for presumptive taxation u/s 44AD and declare net income at 8% & pay tax.He need not maintain Books in such case.In normal cases he can maintain books and file income tax return on the profit earned.

Vineet (Director) 07 December 2009

I agree with Mr Chandargi.

If the contractor wants to disclose income less than presumptive rate of 8% of turnover, he has to maintain books of accounts and get them audited irrespective of the fact that the turnover is less than Rs 40 Lakhs.