ITR 4 MARKED DEFECTIVE

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Vikas Sinha

Tax Consultant

94 Points Posted on 08 July 2024

I HAVE FILED A ITR 4 FOR BUSINESS HAVING RENTAL INCOME TDS U/s 194I(A) & 194 I(b) ON BUSINESS FROM "JCB EXCAVATOR" RENT, AND ALL INCOME IS DECLARED AS BUSINESS INCOME IN ITR 4 , NOW THE ITR IS MARKED DEFECTIVE AND ERROR AS PROVIDED BY IT DEPARTMENT IS AS BELOW

You have filed your income-tax return in form ITR-4. As per TDS details in your Form 26AS, taxes have been deducted under sections 194IA/194IC/194S/194B/194BB/194BA, etc. of the Income-tax Act, 1961. These sections are reflected as (4IA/4IC/94S/94B/4BB/4BA) in Form 26AS. These sections imply heads of income for which form no. ITR-4 is not the appropriate form. Thus, the required schedules for reporting incomes pertaining to said TDS sections are not present in your return of income filed in form no. ITR-4.

WHAT TO DO NEXT , PLEASE HELP

Replies (8)

Quick Summary

If your ITR 4 has been marked defective due to TDS deductions under sections like 194IA/194IC on rental income from assets like a JCB excavator, the Income Tax Department requires this to be declared under 'Income from House Property' rather than 'Profits and Gains from Business or Profession'. You may need to file ITR 2 or explore options to rectify the TDS deduction details.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212506 Points Posted on 08 July 2024

CPC wants you to file ITR declaring the rental income strictly under head IFHP.

File ITR 2; or raise grievance.

Vikas Sinha

Tax Consultant

94 Points Posted on 08 July 2024

BUT SIR I HAVE NO HOUSE PROPERTY INCOME ALL INCOME I GET IS FROM RENT OF A JCB GIVING ON RENT TO A COMPANY , NO ANY OTHER HEADS OF INCOME

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212506 Points Posted on 08 July 2024

True, but rental income of plant & machinery can also be declare under the head.

Explanation.—For the purposes of this section,—

(i) "rent" means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of (either separately or together) any,—

(a) land; or

(b) building (including factory building); or

(d) machinery; or

(e) plant; or

(f) equipment; or

(g) furniture; or

(h) fittings,

Vikas Sinha

Tax Consultant

94 Points Posted on 08 July 2024

THEN I SHOULD DECLARE ALL THAT INCOME IN INCOME FROM HOUSE PROPERTY?

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212506 Points Posted on 08 July 2024

An alternative is to get rectified the TDS deduction section. As sec. 194I (A) (B) relates to rental income and not business income, you cannot declare it under PGBP.

Check with your clients if that can be done, otherwise to remove the defect this is the only alternative.