Income tax return filing (itr4)

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arun (Querist)
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24 July 2016 Dear sir/madam Mr.X is a SOFTWARE Professional and he has renders contionous professional service to the Company and TDS also Deducted U/S 194J and it is the only source of income for him, and he has no Assets Whether it is required to fill Balance sheet colomn in ITR4.
since his Gross Reciepts was Rs:440000/- and income of Rs:348462/-

arun

arun (Querist)
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24 July 2016 Having only laptop but not there any vehicles and loans

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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31 July 2024 For Mr. X, a software professional, here’s how to handle the ITR-4 filing:

### **1. Filling the Balance Sheet Column in ITR-4**

Even if Mr. X has no significant assets or liabilities, he is still required to complete the Balance Sheet section in **ITR-4**. This is mandatory under the Income Tax Act for individuals filing under **Section 44ADA** or **44AE**, even if there are minimal or no assets.

#### **Steps to Fill the Balance Sheet Column:**

1. **Download and Open ITR-4:**
- Ensure you are using the latest version of the ITR-4 form from the Income Tax Department’s e-filing portal.

2. **Navigate to the Balance Sheet Section:**
- In the ITR-4 form, look for the section or schedule related to the Balance Sheet (Schedule BS).

3. **Fill the Balance Sheet Details:**
- **Assets Side:**
- **Current Assets**: Enter the value of the laptop as a fixed asset. If the value of the laptop is minimal and not significant, you may categorize it under "Other Fixed Assets" with its book value.
- **Cash and Bank Balances**: Report any cash or bank balances if applicable.
- **Liabilities Side:**
- **Current Liabilities**: If there are no loans or other liabilities, this can be left blank or reported as zero.

4. **Reporting in the Form:**
- If the Balance Sheet shows zero balances for assets and liabilities (other than the laptop), this is acceptable. Ensure the Balance Sheet balances (i.e., total assets equal total liabilities).

5. **Profit and Loss Account:**
- Ensure that the Profit and Loss Account reflects the income and expenses correctly, as it contributes to the balance sheet totals.

### **Additional Points:**

- **No Vehicle/Loan Information:**
- Since there are no vehicles or loans, these sections will be reported as zero.

- **Filing Requirement:**
- Completing the Balance Sheet is necessary for ITR-4, even if it's a simple one with minimal details. The Income Tax Department requires this information to accurately assess the financial position of the taxpayer.

- **Income Computation:**
- Ensure the computation of income in ITR-4 matches the income reported in the Balance Sheet and Profit and Loss Account.

### **Example of Filling:**

- **Assets:**
- **Fixed Assets**: Laptop – Enter the book value (e.g., ₹30,000).
- **Current Assets**: Bank Balance (if any).

- **Liabilities:**
- **Current Liabilities**: Nil or zero if there are no liabilities.

### **Conclusion:**

Even if Mr. X's financial situation is minimal, he must complete the Balance Sheet section accurately. The form will not be accepted without this information if required. Ensure all details are consistent across the various sections of ITR-4.

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