ITR 4 Form is Available for Filing of Income Tax for year ending 31.3.2020

ITR 4 Form is Available for Filing of Income Tax for year ending 31.3.2020

Income Tax Department has issued ITR 4 after ITR 1.

Now Salary person and Business person can file ITR without any delay (FY 2019-20 and AY 2020-21).

Due date to file ITR 1, 2, 3 and 4 is 30^th November 2020 for year AY 2020-21. Wait is over for Business and Salary people to file ITR.

This ITR 4 has come with changes or amendments and asking some more details about financial transaction of business person like ITR 1. Business person has to provide information about only Business and other Income till last year. This time Department is asking other financial information like amount spent on electricity during last year.

ITR 4 can file by following person

Ø  Individuals, HUF and Firm resident: Individuals HUF and firm except LLP can file ITR 4.

Ø  Business Turnover: Above mention person is into business and turnover is less than 2 cr during last year can file ITR 4 on presumptive income method. If turnover will exceed Rs 2 cr in last year will require Tax Audit from CA.

Ø  Professional Income: The person has professional receipt instead of business Income and its professional receipt does not exceed Rs 50 L can file ITR 4.

Who is eligible to file ITR 4

Nature of Income	Turnover	Taxable Income	Remark
Business	Up to Rs 2 Cr	8% or More	Can File ITR 4
Business	Up to Rs 2 Cr	Less than 8%	Cannot File ITR 4, Go for TAX Audit by CA
Business	Above Rs 2 Cr	Any percentage	ITR 3 and  Go for TAX Audit by CA
Professional	Up to Rs 50 L Cr	50% or More	Can File ITR 4
Professional	Up to Rs 50 L	Less than 50%	Cannot File ITR 4, Go for TAX Audit by CA
Professional	Above Rs 50 L	Any percentage	ITR 3 and  Go for TAX Audit by CA
Insurance agent or Commission Agent	Any Income	Any Percentage	Cannot File ITR 4, Go for ITR 3

Following Business and Professional cannot file ITR 4

Ø  Director in any company: Business man or professional is director in any company cannot file ITR4.

Ø  Shareholder in Private Limited: Above mention person is shareholder in any private limited company cannot file ITR 4.

Ø  Show less than presumptive Income: If Above mention person wants to disclose income lower than prescribe limit cannot file ITR 4 and require to get audit from CA. alary person having income from salary is more than Rs 50 L in year

This year Income Tax Departments is asking other financial information from Business man and Professional person (not only balance sheet and profit and loss accounts). As we know all businessman has to file balance sheet and profit & Loss accounts which disclosed all financial information related to the person. This year Income tax department is asking financial information from all people too apart from balance sheet and profit & loss accounts.

All Business and Professional persons has to answer following question before submitting Income Tax return for FY 2019-2020 AY 2020-21

Deposit into bank: Had you deposited more than Rs 1 cr in one or more bank accounts during previous year?

Spent on Foreign Travel: Had you spent more than Rs 2 Lakhs on foreign travel on yourself or anyone?

Electricity Bill: Had you spent more than Rs 1 Lakhs on electricity in last year?

Investments under section 80 for deduction: If you had made investment under section 80 between April 2020 to June 2020, the investment has to separately disclose.

Medical Insurance: This time ITR 1 has separate sheet for section 80D medical Insurance and salary person has give information about medical insurance and its family member if you taken medical insurance for them.

https://www.youtube.com/watch?v=TZaKiywXWwQ&t=12s

So it is advisable to all Business and Professional person be careful and provide correct information about above questioner before filing and submitting ITR 4 for year ending 31.3.2020.