Difference between ITR -4 and ITR-4S
by Mohit Kaher Article SubmissionSeveral professional & business owners are unsure about
whether they should file ITR
4 or ITR-4S. Read on to find out
which one applies to you.
Generally speaking ITR-4 can be filled by
anyone who is running a business or undertaking a profession. There is no
minimum income you should be earning to file this return. Say if you are a
shopkeeper, construction contractor, a doctor, a tutor, a retailer, a
wholesaler, an insurance agent, interior decorator or fashion designer, you can
file ITR-4. Absolutely all businesses are eligible to file ITR -4.
ITR-4
is a detailed form ITR which broadly requires the following details of ‘Income
from Business’ head –
o Part A Part A-GEN:
General information and Nature of Business
o Part A-BS: Balance Sheet
as of March 31, 2015 of the Business or Profession
o Part A-P&L: Profit
and Loss details for the Financial Year 2014-15
o Part A-OI: Other
Information (optional in cases where audit is not mandatory)
o Part A-QD: Quantitative
Details (optional in cases where audit is not mandatory)
o Part B: Outline of the
total income and tax computation
Besides
this there are about 35 other schedules in ITR-4 where additional information
is asked for.
In summary, everyone who runs a business or carries on
profession, however big or small, can file ITR-4.
Then who can file ITR-4S?
ITR-4S is a special case ITR, applicable for businesses
where income is calculated on ‘presumptive method’. As per presumptive method –
net income is estimated to be 8% of gross receipts (Section 44AD of the income tax act) or Rs 7,500 per month
for each vehicle where the tax payer is plies, leases or hires trucks (Section
44AE of the income tax act). This is a special scheme of income tax department
– those who opt for this scheme – don’t have to maintain accounting records.
The ITR-4S is a very simple return, just about 3 pages and
that’s all the income
tax
department wants to know. Broadly the ITR -4S asks for –
Gross Turnover or Gross Receipts
Total presumptive income
Total Sundry Debtors
Total Sundry Creditors
Total Stock-in-trade
Cash Balance
1.
However there are 2 situations where ITR-4S cannot be filed,
and ITR-4 has to be filed in these cases –
·
Situation 1 – Where Gross receipts or turnover of a business
or profession is more than Rs 1 crore
·
Situation 2 – If you fall in any of the below mentioned case
you cannot file ITR-4S
o Income from commission or
brokerage
o Income from Agency
business
o Income from Profession –
those who are carrying on profession of legal, medical, engineering,
architectural, accountancy, technical consultancy, interior decoration, an
authorized representative, film artist, company secretary and information
technology. Authorized representative means – any person, who represents
someone, for a fee or remuneration, before any Tribunal or authority under law.
Film Artist includes a producer, actor, cameraman, director, music director,
art director, dance director, editor, singer, lyricist, story writer,
screenplay writer, dialogue writer, dress designer – basically any person who
is involved in his professional capacity in the production of a film.
o Own more than one house
property
o Earned Speculative income
like winning from lotteries, horse races
o Agriculture income or
exempt income more than Rs 5,000
o Have Capital gains
o Losses to be carried
forward
o Holds any assets outside
the country or has any financial interest in any foreign entity
o Is a signing authority in
any bank account located outside India
o Any resident having
income from any source outside India
o Claimed relief under
Section 90 or 91
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Created on Dec 31st 1969 18:00. Viewed 0 times.