Builder can get benefit of presumptive income u/s 44-AD

[Guest]

If builder himself engaged in construction activity for the A.Y.2010-11and having turnover less than limit specified u/s 44AB,  can he furnish his return of income U/S 44AD. if relevant judgment is there for the said issue, please provide.

[Surender Gupta]

What do you understand by the term "Builder" and "contractor"? Whether he is having any turnover from an activity acting as Builder. If yes it is forming part of total turnover. Provision of section 44AD are clear in this respect. You may also see certain case laws under section 44AD.

AI Summary

Presumptive taxation eligibility for builders hinges on treating construction receipts as business turnover and audit threshold compliance. If a person acting as a builder derives turnover from construction, those receipts form part of his total business turnover and the provisions governing presumptive income apply, subject to eligibility criteria, audit threshold, and fact-specific distinctions between builder and contractor supported by relevant case law.