Presumptive taxation: audit applies when declared profit is below deemed profit and total income exceeds exemption.
Presumptive taxation deems profits at prescribed percentages of turnover or receipts and ordinarily relieves eligible taxpayers from maintaining books and audit. However, a non obstante clause makes the audit and bookkeeping obligation arise only when two conditions are met: the taxpayer declares profits below the basic deemed profit and the taxpayer's total income, computed under the Act, exceeds the maximum amount not chargeable to tax. Individuals/HUFs use the basic exemption limit; firms face a zero threshold, so firms declaring profits below the deemed amount are typically subject to audit unless total income is nil or negative. (AI Summary)

Exemption for construction of single residential unit: subcontracting work contracts may inherit tax exemption, subject to work contract status.
Entry 14(b) exempts only original works for a single residential unit; activities required for a completion certificate are exempt while completion, finishing and luxury works are not. Ancillary services used by the main contractor remain taxable unless the provider is a subcontractor supplying a works contract and qualifies under Entry 29(h); pure labour contracts are excluded. Painting and other finishing works are non exempt and valuation rules separately treat completion and finishing services. Ambiguity exists between subcontracting and outsourcing when applying Entry 29(h). (AI Summary)