CA Rahul Mittal
Quick Summary
ITR-1 & ITR 4 forms for A.Y. 2020-21 released for e-filing by Income Tax Department.
Who are eligible to file ITR-4?
- An Individual, HUF or Firm (other than LLP) who is ordinarily resident in India
- Income from salary/pension (for ordinarily resident person).
- Income from one house property but excluding brought forward losses and losses to be carried forward.
- Income from presumptive business or profession covered u/s 44AD, 44ADA & 44AE (for a person resident in India).
- Family Pension (for ordinarily resident person)
- Income from other sources (other than income chargeable to tax at special rates)
- Total income upto Rs. 50 lakh
Who are not eligible to file ITR-4?
- Any person who is either Director in a company or has invested in unlisted equity shares.
- Any person who is a partner in any firm
- Income from business and profession
- Income from presumptive business or profession covered u/s 44AD, 44ADA & 44AE (for not ordinarily resident and non-resident person)
- Capital gains/loss on sale of investments/property
- Person claiming deduction u/s 57 (other than deduction allowed from family pension)
- Income from other sources (including income chargeable to tax at special rates)
- Total income exceeding Rs. 50 lakh.
- Assessee has any brought forward losses or losses to be carried forward under any head of income.
Last-minute checklist for error-free filing of ITR-4
- Permanent Account Number (PAN)
- Aadhaar Number
- GSTIN No. and turnover as per GST returns
- Matchbook turnover with GST returns
- Form 16A & 16C (if any issued by deductor) and TDS certificate
- Form 16 from employer. An employee who has change the job in Financial Year can have 2 or more form 16.
- TDS certificate from employer
- Match tax details with 26 AS
- Statement of interest paid on house loans
- Interest statements showing interest earned on the savings bank account and fixed deposits
- Proof of tax-saving investments/expenses (80C to 80U)
- Bifurcation of details of investment made during the period from April 1, 2020, to June 30, 2020.
- Other investment documents, such as a statement of interest paid on education loan, etc.
- Bank account details with IFSC code
One must ask these questions to the concerned person while filing ITR
1. Have you deposited the amount or aggregate of amounts exceeding Rs. 1 Crore in one or more current account during the previous year?
2. Have you incurred expenditure of an amount or aggregate of the amount exceeding Rs. 2 lakh for travel to a foreign country for yourself or for any other person?
3. Have you incurred expenditure of amount or aggregate of the amount exceeding Rs. 1 lakh on the consumption of electricity during the previous year?
4. Do I have to file an income tax return electronically?
Every taxpayer shall file the income-tax return electronically except a super senior citizen (whose age is 80 years or above during the previous year 2019-20) who furnishes the return either in ITR-1 or ITR-4.
Verify your ITR(Income Tax Return)
It is important to verify your return otherwise your ITR filing will be invalidated. You can opt for either physical verification or e-verification.
- For physical verification, you need to print a copy of ITR-V (Income Tax Return Verification form) that should be signed in blue ink, and the physical copy sent to the Centralized Processing Centre (CPC) Bengaluru via ordinary post within 120 days of filing ITR.
- Alternatively, you can complete e-verification within 120 days of ITR filing through several modes, including Internet banking, bank ATM, bank account number, Demat account number, and Aadhaar OTP
Also Read
FAQ :
Individuals, HUFs, or Firms (excluding LLPs) who are ordinarily resident in India and have income from salary/pension, one house property, presumptive business/profession (u/s 44AD, 44ADA, 44AE), family pension, and other sources (excluding special rates), with a total income up to Rs. 50 lakh, are eligible.
You are not eligible for ITR-4 if you are a director in a company, have invested in unlisted equity shares, are a partner in any firm, have income from business and profession (other than presumptive), capital gains/loss, claim deduction u/s 57 (other than family pension), have income chargeable at special rates, total income exceeding Rs. 50 lakh, or have brought forward losses.
Essential documents include your PAN, Aadhaar number, GSTIN and turnover details, Form 16A & 16C (if applicable), Form 16 from your employer (potentially multiple if you changed jobs), TDS certificates, Form 26AS, interest statements (loans and earnings), and proof of tax-saving investments.
Before filing, consider if you deposited over Rs. 1 crore in current accounts, spent over Rs. 2 lakh on foreign travel, or spent over Rs. 1 lakh on electricity during the previous year, as these may require specific reporting.
You can verify your ITR-4 either physically by sending a signed ITR-V to CPC Bengaluru within 120 days, or electronically through various methods like internet banking, ATM, bank account, Demat account, or Aadhaar OTP within 120 days of filing.
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