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Does value of "total capital and liabilities" have to match "total assets" in itr 4 ?

Manu (Mr) (89 Points)

26 June 2018

Do we have to match the values of "total capital and liabilities" with "total assets" in itr 4. Do they have to be the same when calculating?

According to this youtube video it says that both the values needs to match.

https://youtu.be/Qo4L9jzrAnc?list=WL&t=1155

I came accross 2 other videos that said the same thing.

For example i have cash in hand 6000, and i put other mandatory fields as 0

Now after calculation

Total capital and liabilities = 0
Total assets = 6000

There is a mismatch.

Will there be any chance of receiving a defective notice due to this mismatch?

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15 Replies

Ashish Khillan (Gaining knowledge) (1039 Points)
Replied 26 June 2018

not necessary to match, fill 0 in case no value

3 Like

Manu (Mr) (89 Points)
Replied 27 June 2018

Thanks for your response.

If i put all mandatory fields of balance sheet 0 will there be any problem?

I came accross a topic where a person had recieved a defective notice for puting all values 0. https://www.caclubindia.com/forum/defective-return-u-s-139-9-error-code-31-367709.asp?offset=1

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 27 June 2018

Actual intention of Mr. Ashish seems to be whichever fields are mandatory. e.g. E15, E19, E 20, & E22 must be filled ....... Rest of the fields whatever you are sure of like bank balances, fixed assets etc. that you can fill. But for the fields which you are not sure, can be left blank....

In that case no defective notice can be received ..... at least for this part......

2 Like

Ashish Khillan (Gaining knowledge) (1039 Points)
Replied 27 June 2018

yes, Right Dhirajlal Sir.......

1 Like

Manu (Mr) (89 Points)
Replied 30 June 2018

Thanks for your reply.

I don't have any details for mandatory fields (E15 , E19, E 20, E22) , will it be ok to put 0?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 30 June 2018

E15 & E20 can be zero, but some tantative figures for inventories (without that how can you do business?) .......... and cash at hand (can never be zero or negative !!)

1 Like

Ashish Khillan (Gaining knowledge) (1039 Points)
Replied 30 June 2018

Dhirajlal Sir,
for service provider, who dont have any stock.... then can he put 0 value ?

1 Like

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 30 June 2018

Yes ......... but many service providers do have some invetories like stationery, tools etc..

So, better to fill some realistic figure......

Ritesh (Professional) (291 Points)
Replied 30 June 2018

You are filling details because you are maintaining books of account. Now in any method of accounting whether in case or mercantile, assets and liabilities are always equal. Though the other details are not mandatory subject to non-availability. But you have all the figures and you can't skip these column just because you don't want to disclose. You can't fool IT department by just saying these are not mandatory.

Manu (Mr) (89 Points)
Replied 05 July 2018

Thanks for your reply.

The nature of business is related to selling digital software online through website. In that case will it be ok to put 0 in mandatory fields (E15 , E19, E 20, E22).

The only value i have is cash in hand which is again not related to the buisness.

I don't have those values because it not applicable due to the nature of my business.

Please give your advice i don't want to take any risk.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 05 July 2018

Yes, it will be accepted.. (with a positive cash figure & bank balance)

1 Like

Manu (Mr) (89 Points)
Replied 06 July 2018

Thanks for your response.

In the balance with bank field do i have to give current balance in the account or the overall total balance in the bank account ( saving account + fd + ppf ). Also do i have to take the sum of all bank account or just the active bank account.