Tag: Income tax form

Income Tax

Filing Income tax returns (Precautions)-Part III

Income tax Return form 4 (SUGAM)

This post is in continuation of our earlier post on precautions while filing ITR for Asst Year 2018-19 . Please refer to them if you wish to read them for filing Income tax Forms ITR 1 ,ITR2, or ITR 3

Post Link
Filing Income Tax Returns (Precautions) -I  Filing Income Tax Returns (Precautions) -I
Filing Income tax returns (Precautions)- Part II Filing Income tax returns (Precautions)- Part II

ITR 1 ,ITR 2 and ITR 3 have already been explained in our earlier posts referred to above.In this post  we will take from ITR4 more popularly called as Sugam

For a ready reference ITR 4 is reproduced below

As one can see that ITR 4 is for those who have presumptive business income and any other income but no income from capital gains 

A brief explantory guide is also given hereunder

 

How to get the maximum from this guide:

Please check which heads are applicable

Also note that following assessee can not file ITR 4

Assessee having 

 (a) Income from more than one house property; or

(b) Income from Winnings from lottery or income from Race horses; or

(c) Income under the head “Capital Gains”, e.g. Short-term capital gains or long-term capital gains from sale of house, plot, shares etc.; or

(d) Income taxable under section 115BBDA; or

(e) Income of the nature referred to in section 115BBE; or

(f) Agricultural income in excess of ₹5,000; or

(g) Income from Speculative Business and other special incomes; or

(h) Income from an agency business or income in the nature of commission or brokerage; or

(i) Person claiming relief of foreign tax paid under section 90, 90A or 91; or

(j) Any resident having any asset (including financial interest in any entity) located outside India or signing authority in any account located outside India; or

(k) Any resident having income from any source outside India.

Its important that you get your Balance Sheet and Other schedules ready before filling the return

Also get the receipts bifurcated into receipts from bank and receipts other than from bank as seperate rates are applicable on each one

Keep the details of deductions under chapter VI proofs handy.

The guide presented here is freely downloadable .Do whatever you wish to do with this but please note that with the advent of technology everything has changed.Gone are the days when one earns income and forget to declare in the return either intentionally or unintentionally and the income was seldom discovered by the department.

Now it happens that the department gets information from almost all over the world and to add to it the data mining softwares are analysing the information and also applying all permutations and combinations so be aware and follow the guidelines given in the guide above and sleep a peaceful night and contribute in our nation’s progress.

In next post we will take remaining returns except ITR 7 which requires a separate post so happy reading

 

 

Income Tax

Filing Income tax returns (Precautions)- Part II

This post is in continuation of our earlier post on precautions while filing ITR for Asst Year 2018-19 .At that time ITR 6 was not released now as all return forms have been released we will take them one by one

ITR 1 has already been explained in our earlier post ITR 2 is more or less same as ITR1 We will take from ITR3

As one can see that ITR 3 is for those who have income from any head so the guide presented here is fairly long but it is important that we explain all the sections however generally all heads are not present in all cases so go ahead and look for the relevant sections.

How to get the maximum from this guide:

Just check which heads are applicable to your income .Now go through only those heads and follow the guide in your context

Remember each and every head is in most of the cases never applicable to a single entity

The guide presented here is freely downloadable .Do whatever you wish to do with this but please note that with the advent of technology everything has changed.Gone are the days when one earns income and forget to declare in the return either intentionally or unintentionally and the income was seldom discovered by the department.

Now it happens that the department gets information from almost all over the world and to add to it the data mining softwares are analysing the information and also applying all permutations and combinations so be aware and follow the guidelines given in the guide above and sleep a peaceful night and contribute in our nation’s progress.

For a ready reference ITR 3 is reproduced below

In next post we will take remaining returns except ITR 7 which requires a separate post so happy reading

 

 

Income Tax

New Income tax forms Released and their usage


Starting from this post we will be explaining in a series of posts the various precautions required before filing of returns under Income tax from the year 2018-19 as also the precautions required failing which one may land into trouble with income tax department .

Since from this year viz Asst Year 2018-19 Income tax return filing has gone a sea change which means the assessee has to be very careful while filing the returns.Though the system has started screening from last year but many inbuilt checks will be active from this year.We will try to explain the usage of forms , their intricacies and the possible screens or better known as inbuilt checks that the department will be implementing in processing of the returns.

So first thing first as on date only 4 forms have been released (please see correction below) which are meant for Individuals having salary Income and PGBP income which do not require Audit as the last date for filing the return is 31st July 2018 and further that from this year a penalty is proposed in delay in filing of returns

Correction: Two more forms have been released today viz 21/05/2018

Form NameTo be used byHeads of IncomeLimitationsInbuilt checks
ITR 1IndividualsSalary,Income from House Property and Income from other sourcesIncome Should be less than or equal to 50.00 lacs and only one house property should be earning incomeMore Salary details now asked
ITR 2Individuals and HUFAny head Except PGBPThere should be no Income from BusinessPlease see the details explained below
ITR 3Individuals and HUF having PGBPAny HeadNon Audited casePlease see the details explained below
ITR 4Assessee having Presumptive IncomePresumptive IncomeNon Audited casePlease see the details explained below
ITR 5Assessee other than Individual,HUF,Company and person filing ITR 7Any HeadAudited or Non Audited wherever applicableExplained in our post
ITR 7For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F)Any HeadAudited GenerallyExplained in our post

Now regarding inbuilt checks the returns are being screened for following discrepancies:

(Please note that the checks explained below are given on the basis of inputs recieved from various assessees and on the basis of experience gained in field by the writer and in no way these should be considered as provided by the department)

1)The salary and other income reported in 26AS at the time of processing rather than at the time of filing of returns is checked and if any discrepancy found the return is treated as defective.

Now this is a real tricky situation as suppose your bank reports a certain amount of interest on FDR which you declare on the face value as reported by bank and file the return.Suppose bank later on say after 15 days revises its TDS returns which thereby revises your interest income .In that case you will be getting defective return notice based upon the mistake done by the bank on which you have no control.Same goes true with your employer as well if he later on rectifies the income .

Of course there are penal sections that penalise the deductor for reporting wrong income of the deductee but still the deductee being the assessee is at the recieving end as in many cases the refunds are struck due to these notices in earlier year and the same practice is going to be followed this year.

2) Suppose you have declared a bank account which is in joint name of your spouse and there is a refund in the return .Now the system checks that the name do not matches (in those cases where your spouse is first name) then your refund is bound to be delayed as then the department will ask for a reverification

3) In those cases where there is adjustment of any income from other heads the system checks for any variation from the income deducted from any head from that added in another head .If there is any difference say due to rounding off (which is bound to happen in many cases) then the system will flag the return as defective

4) In those cases where there was a notice for any reason and the reply is kept unfiled the return will be kept unproccessed till the time that notice is kept pending

5) The salary details should match with that shown in 26AS inclusive of allowances

As and when new forms are released we will keep you posted and will also explain the checks required before filing the returns .