Provision for calculating the earnings and gains of the civil construction industry

Despite anything to the contrary provided in sections 28 to 43C, in the event of a taxpayer engaged in the business of civil engineering applications or supply of labour for civil engineering applications, an amount equivalent to 8% of the gross receipts received or due to the assessee for the business in the prior year, or, if applicable, any amount more than the aforementioned amount that the assessee reported in his income tax return will be judged to be the profits and gains of that business that are subject to taxation under the "Profits and gains of business or profession" head.

As long as the aforementioned gross receipts received or due does not exceed a total of forty lakh rupees, nothing in this subsection applies.

For the purposes of the aforementioned subsection, any deduction permitted by the provisions of sections 30 to 38 shall be assumed to have already been fully implemented, and no additional deduction shall be permitted by those sections. As long as the requirements and restrictions outlined in section 40's clause (b) are met, the pay and interest paid to the assessee's partners in a business are allowed to be deducted from the revenue computed under the preceding subsection.

You can know more about section 12a of income tax act.

Any asset that is written down and utilised for the purposes of the business mentioned in the aforementioned subsection is regarded to have been valued as if the assessee had requested and been granted the deduction for depreciation for each of the pertinent assessment years. Insofar as they pertain to the business mentioned in the aforementioned sub-section, the provisions of sections 44AA and 44AB shall not apply, and in calculating the financial thresholds under those sections, the gross receipts or, as applicable, the income from the aforementioned business shall be disregarded.

When the assessee asserts and provides proof that the earnings and gains from the aforementioned business during the prior year relevant to the assessment year beginning on the first day of April, 1997, or any earlier evaluation year, are lower than the earnings and gains specified in the aforesaid sub-section, nothing in the aforementioned provisions of this section shall apply and following that, the Assessing Officer will proceed to evaluate the assessee's total income or loss and will calculate the amount due from the assessee based on the assessment conducted in accordance with Section 143's Subsection (3).

Whatever the previous clauses of this section may have said, a taxpayer may claim lower revenue and gains than those listed in the aforementioned sub-section if he keeps and maintains the books of accounts and other documents required by sub-section (2) of section-44AA, has his accounts audited, and provides a report of the audit as required by section-44AB.

Here are the facts on 80g deduction.