ITR 4

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This discussion clarifies whether an individual can file ITR 4 if they previously held unlisted equity shares, even if those shares were sold during the financial year. The consensus is that holding unlisted equity shares at any point during the previous year disqualifies you from using ITR 4. If you've sold these shares, you'll need to provide details in your ITR 3 filing.

CA Garima Bhayana

CA Garima Bhayana (Querist)

09 June 2020 If a person had equity shares in unlisted company in FY 18-19 and filled ITR3 but now these shares are sold in FY 19-20 . Can ITR 4 be filled in FY 19-20 as shares of unlisted co are sold?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

09 June 2020 Can't use ITR-4 because the said person has held unlisted equity share at any time during the previous year.

CA Garima Bhayana

CA Garima Bhayana (Querist)

09 June 2020 Sir In ITR 4 (Not for an Individual who is either Director in a company or has invested in Unlisted Equity Shares )these wordings are used. By this it is not clear that if held anytime shares then cant file ITR 4. Sir Please can you define me this ?

CA Garima Bhayana

CA Garima Bhayana (Querist)

09 June 2020 Sir if these shares are sold on 1-4-2019 then can we file ITR 4?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

09 June 2020 No. Please see proviso (IE) of rule 12(1)(ca) of Income tax Rules,1962.

CA Garima Bhayana

CA Garima Bhayana (Querist)

09 June 2020 Thanku so much Sir. Sir can you please clear my last doubt i.e. when we file ITR 3 then whether Details of shares are filled as now shares are not held or shares details will be provided by concept i.e. held at any time during the Previous Year .

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

09 June 2020 Yes, the form is self explanatory.

CA Garima Bhayana

CA Garima Bhayana (Querist)

09 June 2020 Yes means have to give details about shares in ITR 3 . Am i Right Sir?

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