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ITR 4 - When Zero Revenue

Deepanshu Garg (Student) (251 Points)

26 July 2022

I have just started my buisness and have taken GST registration. I have zero revenue, zero assets & liabilities except Rs. 5,000 in current account which is also my capital. That's all I have.
Also, I have duly filed all my GST returns with nil value. In 26 AS & AIS as well, turnover is appearing is Rs. 0.

Now, my query - Do I need to file ITR 4 if I have zero revenue? If yes, than how do I file it as it is showing error when I put Rs. 0 in revenue and try to save it.

Thanks & Regards

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12 Replies

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 27 July 2022

File ITR-3 will zero income

4 Like

CA Rashmi Gandhi (Chartered Accountant) (86225 Points)
Replied 27 July 2022

No need to file ITR if there is nil turnover

3 Like

Deepanshu Garg (Student) (251 Points)
Replied 27 July 2022

I have salary income too.

2 Like

CA Puja Sharma (Chartered Accountant) (4874 Points)
Replied 27 July 2022

Fiel ITR 3 because ITR 4 will not take zero revenue.

3 Like

CA Rashmi Gandhi (Chartered Accountant) (86225 Points)
Replied 28 July 2022

File ITR-1 showing salary income only

3 Like

Deepanshu Garg (Student) (251 Points)
Replied 28 July 2022

@ CA RASHMI GANDHI,
I have followed the same mam. I filed in ITR 1. In fact, return has been processed and client has received intimation in 143(1) with no error.

1 Like

CA Rashmi Gandhi (Chartered Accountant) (86225 Points)
Replied 29 July 2022

Okk, great 👍

2 Like

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 29 July 2022

If you have GST registration then filing ITR-1 is very wrong..

You have to file nil return using ITR-3

2 Like

CA Rashmi Gandhi (Chartered Accountant) (86225 Points)
Replied 29 July 2022

But if someone doesn't have business income how he can file ITR-3 just try yourself

2 Like

Deepanshu Garg (Student) (251 Points)
Replied 29 July 2022

@ Eswar Reddy D
I know sir it's wrong as per rules. Thing is that the client had purchased a car, completely for personal purspose, and TCS was deducted on it. Client barely had any income except Rs. 2,20,000 per annum as salary. He received Rs. 10,00,000 from his mother as gift, which I have disclosed in exempt income schedule.
Now, to get TCS refund he was filing the return. When I was filing his return in ITR 3, I put Rs. 0 in revenue & expenses, Rs. 5,000 as capital on liabilities side & bank balance as assets. After checking the last schedule of Tax Liability, when I was finally proceeding to file the return, it showed me no refund. Than, I went to taxes paid schedule, I checked TCS was there but it was showing a message that I have to show a corresponding income to claim that TCS refund.

So, after this I thought let's skip the rules & simply file the return in ITR 1, which is wrong as per Income Tax Act & rules, but I took the risk anyway and luckily client received the message of return processed without any error with intimation in 143 (1).

Now, just for future case, I would like to raise a query here & ask you how do I claim TCS on personal vehicle. Also, I have no business income & expense but have a GST number. How to file ITR 3 return in this case ? As I told earlier that a message was appearing to show a corresponding income to claim TCS refund.

Thanks & Regards

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 29 July 2022

TCS has no relationship with salary income..

It is true that you have GST registration.

Balance Sheet

Capital : 5000

Bank Balance : 5000/-

The simple balance sheet can't be filled in salary ITR.

1 Like

VIRAAJ VASHISHTH (81 Points)
Replied 26 February 2024

What is the ITR 4 and Who is it For?

The Income Tax Return (ITR) 4 form is used to file income tax returns by individuals and entities with income from businesses or professions. This form has been introduced in India since May 1, 2014. The ITR 4 helps simplify accounting processes by eliminating complex calculations while filing tax returns. It also helps you to get a monthly tax refund directly into your bank account within 3 days after submitting your income tax return through the NEFT facility provided by RBI Bank