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.
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.
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.
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(i) is for TDS on Income other than Salary as per the Form 16A furnished by the deductor.
And Part 20 TDS 2(ii) is for TDS on Rent and as per Form 16C TDS certificate for Rent.
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.
TCS Schedule 22 consists of details regarding the Tax Collected at the source and as mentioned in the Form 27D issued by the collector.
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.
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.
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.
- The next two parts i.e, C & D are for donations having qualifying limit as specified under the Income Tax Act 1961.
- 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.
