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Non Applicability of Form ITR 4

We have already understood the cases in which Form ITR 4 can be filed. But, there are certain categories of the assessee under the income tax act who cannot file this ITR 4 form. This form is not applicable to individuals who are either.

  • Director in a company or
  • Has invested in unlisted equity shares of a company.

Let us now understand ITR 4- Sugam, form in detail for each of its categorized parts.

Part A: Personal Information & Filing Status

The first part of this form is related to the personal information of the assessee such as

  • Name,
  • PAN,
  • Address,
  • Date of Birth,
  • Email and
  • Mobile number, etc.The next part shows the filing status of the return, i.e., whether it is a revised return or return in response to some notice issued by income tax department or return filed by the assessee himself or by any of his representative and details of such representative.

Part B: Gross Total Income

Now comes the part for the calculation of Gross Total Income.It is the aggregate of income calculated under all different heads of Income.

  • Income from Business and Profession which is calculated in the schedule on the presumptive basis based on the relevant section.
  • Income taxable under the head ‘Salary’: it is to be calculated the same as in case of ITR-1. First, determine the monetary and non-monetary part of the salary and then deduct the allowance exempt under section 10. Then allow deduction under section 16, i.e., standard deduction, entertainment allowance, professional tax. To get the amount chargeable to tax under the head income from "Salaries."
  • Income from House Property: calculation of income from house property where maximum loss that can be set off in a period is limited to Rs. 2 Lakhs.
  • Other sources: Income from other sources can be calculated by specifying the source of such income from the drop-down list. After that, a standard deduction u/s 57 (iia) is available toward the family pension.

Part C: Deductions and Total Income

Now, allow for deduction under Chapter- VIA of the Income Tax Act 1961. The quantum of such deduction is based on the amount invested by the assessee.

Deductions and Total Income

Now, calculate the tax liability based on the tax slab applicable to the income group of the assessee. And allow for Rebate u/s 87 A if income is less than Rs. 3.5 Lakh. And allow for Relief u/s 89 in respect of salary arrears received.

Schedule BP of ITR 4 – Sugam

The schedule for calculating Business Income is as follows:

  • The first set of presumptive income is for Business income under section 44AD.
  • Presumptive income of Profession is covered under section 44 ADA
  • And for goods carriage, the presumptive income is calculated under section 44 AE.
  • It also contains a column for information regarding Turnover/ Gross Receipt reported for GST.
  • After that, it also contains financial particulars for Business.

Schedule BP of ITR 4

Schedule BP of ITR 4

Schedule BP of ITR 4

Schedule BP of ITR 4

TDS Schedule under Indina Income Tax Return form ITR 4

Part 19 is related to the Tax Deducted at source from salary. This schedule is populated using the Form 16 issued by the Employer. It incorporates details such as:

  • TAN of deductor,
  • Name of the employer,
  • Income under Salary, and
  • Tax deducted thereon.

Part 20 TDS 2

Part 20 TDS 2(i) is for TDS on Income other than Salary as per the Form 16A furnished by the deductor.

Part 20 TDS 2

And Part 20 TDS 2(ii) is for TDS on Rent and as per Form 16C TDS certificate for Rent.

Schedule IT of Income Tax Return Form ITR 4

Income Tax Return Form ITR 4

Part 21 is for providing details regarding the payment Advance Tax during the year and self-assessment tax paid at the end of the period. This Schedule requires the assessee to fill the information given on the payment challan such as BSR Code, Serial Number of Challan, date of payment, amount, etc.

Schedule TCS of Income Tax Return Form ITR 4

TCS Schedule 22 consists of details regarding the Tax Collected at the source and as mentioned in the Form 27D issued by the collector.

Income Tax Return Form ITR 4

Part 21 is for providing details regarding the payment Advance Tax during the year and self-assessment tax paid at the end of the period. This Schedule requires the assessee to fill the information given on the payment challan such as BSR Code, Serial Number of Challan, date of payment, amount, etc.

Schedule – Taxes Paid and Verified of Income Tax Return Form ITR 4

In the next schedule, the total tax liability that the assessee is required to pay is automatically calculated. Such liability is calculated after considering the details furnished in the previous schedule. Net liability or refund is calculated by taking the difference of total tax paid from tax liability calculated based on income.

  • Column / Part 28 is for providing the bank account details of assessee held in India at any time during the previous year but not including the dormant accounts.
  • The above bank account details are followed by the Declaration regarding true and fairness of the information provided. And filing the return in the capacity of Self, Karta, Representative, and Partner.
  • If the Tax return Preparer prepares the return, the details of such TRP is to be provided along the amount to be paid to TRP.

Income Tax Return Form ITR 4

Schedule 80G of Indian Income Tax Return Form ITR 4

The Last schedule is to calculate the total amount of deduction to be claimed under section 80G for contributions/ donations made to the charitable institutions.

  • The First two parts are for calculating deduction without any qualifying limit specified under the law. The listing is to be made as the donations eligible for 100% deductions and includes details of the donee and type of donation made.
  • After that donation eligible for a deduction of 50% of the donated amount.

    Income Tax Return Form ITR 4

  • The next two parts i.e, C & D are for donations having qualifying limit as specified under the Income Tax Act 1961.

    Income Tax Return Form ITR 4

  • Part E reflects the cumulative deduction amount claimed under section 80D.

ITR-1 or ITR-4

ITR-1 can be used only if the income of the taxpayer is from income from salary, income from one house property, income from other sources but should not include winnings from lottery etc and exempt income of upto INR 5000. If there is any other source of income of the taxpayer, then he/she cannot use ITR-1.

ITR-4 is used by those who have presumptive income, salary, capital gain, exempt income more than INR 5000, income from house property, income from other sources.

For further details on ITR forms Read More.

Frequently Asked Questions

Q- Is it compulsory to file the ITR4 form for 5 consecutive years once filed in a particular year?

Ans. If taxpayer is opting for Presumptive scheme as per section 44AD then he/she shall have to file ITR4 for 5 consecutive years.

Q- The new ITR-4 is requiring GST as mandatory to file an ITR. But I have not registered under GST. How should I file my ITR?

Ans. ITR 4 can also be filed rather if taxpayer is not registered under GST Law.

Q- What are the key changes in the ITR 4 utility released by Government of India for filing Income Tax return of A.Y. 2019 - 20?

Ans.In New ITR4, individual taxpayers who have presumptive income and also hold directorship in companies or hold shares of unlisted company will not be eligible to file form ITR-4.

Q- If a businessman has filed ITR 4 for previous years and now he wants to file ITR4S, can he switch (he is covered under the presumptive scheme)?

Ans. ITR 4S is not available for A.Y. 2019-20.

Q- Can I file the ITR-4S form in place of the ITR-4 if I already filed the latter?

Ans. ITR 4S is not available for A.Y. 2019-20.

Q- What is the procedure if I submitted the ITR-4 form instead of an ITR-1 form?

Ans. If the wrong ITR Form has been filed , then the return is a defective return, to make it validate file the revised return.The last date for revised return is the end of the relevant assessment year

Q- I am salaried person. I also deal in share trading. Which ITR should I file?

Ans. ITR Form will depends whether the taxpayer intends to show share trading as capital gain or Business Income.

Q- Which ITR (1 or 4) form has to be filed if a doctor gets a salary from a private hospital and also receives the form 16A?

Ans. Doctor needs to file ITR 4.

Q- How should I file an ITR-4 if the only income I have comes from tuition and house rent?

Ans. Taxpayer can consider his tuition income as business covered u/s 44ADA, and can file his return accordingly.

Q- Can I file the ITR 4 under 44ADA if I filed the ITR 3 last year which was the first year of filing? The 5 years limit is for 44ADA as well.

Ans. Yes, Taxpayer can file ITR 4 if s/he filed ITR3 last year and the limit of 5 years is not applicable on Sec. 44ADA.

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CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.