In this article, we will see “How to File ITR-4 Sugam for the Assessment Year 2020-2021?”. So Let’s Start…
Who Should File ITR-4?
This ITR form is used by an individual or HUF, who is resident other than not ordinarily resident, or a Firm (Other than LLP) which is resident, whose total income for the assessment year 2020-21 does not exceed Rs. 50 lakh and who has income under the following heads:
1. Income from business where such income is computed on presumptive basis under section 44AD (i.e. Gross Turnover up to Rs. 2 Crore) or Section 44AE (income from goods carriage up to ten vehicles); or
2. Income from profession where such income is computed on presumptive basis under Section 44ADA (i.e. Gross Receipt up to Rs. 50 lakh); or
3. Income form Salary/ Pension; or
4. Income from One House Property; or
5. Interest income and/or income from family pension taxable under Other Sources.
1. The income computed on presumptive basis under sections 44AD or 44AE or 44ADA shall be presumed to have been computed after giving full effect to every loss, allowance, depreciation, or deduction under the Income-tax Act. However, person having loss after giving effect to the proviso to sub-section 3 of Section 44AE shall file ITR5
2. Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Return Form can be used only if the income being clubbed falls into the above income categories.
Details/ Documents required to File ITR-4
2. Aadhaar Number or Enrolment Id
3. Form 16/ 16A
4. Form 26AS
5. Proof of Tax Saving Investment/ Expenses
6. Bank Statement
7. GSTIN and turnover as per GST Retruns
Prepare & Submit Online ITR-4
Steps to file ITR-4
Step 1: Visit to e-filing Portal
Enter “User ID” (PAN), Enter “Password”, Enter “Captcha” (captcha is case sensitive), and click on the “Login” button.
After click on the “login” button, your “Dashboard” window will open Click on “Filing of Income Tax Return”. Or
Hover on e-File menu and click on the “Income Tax Return”
You will be redirected to the “Income Tax Return” screen. PAN is auto-populated, select the:
→ Assessment Year: 2020-21, →ITR Form Number: ITR-4, →Submission Mode: Prepare & Submit Online.
Select the Bank account details: Select Account for Refund Credit tick the box, then click on “Continue” button.
Prefill Consent screen will appear, tick the box “I Agree to check all the pre-filled data (personal, income, deductions, bank account, tax details) and make necessary changes to report the correct details.”
Step2: Now Fill the details in the ITR-4
After click on “I Agree”, the “ITR-4 Form – Assessment Year – 2020-21” screen will appear.
This form is divided into Nine tabs:
Read the instructions carefully before going to the next tab.
1. While entering the data in online return, please do not click the BACK button in the browser or press the BACKSPACE button. You will be logged out.
2. All amounts are in Indian Rupees.
3. A calendar is provided for selecting the date field (format DD/MM/YYYY)
Note: Read all the instructions from 1 to 8.
Click the right arrow button
To move to next tab.
General Information Tab:
General information will consist of your personal details. Check your pre-filled data.
In Filing Status: select “A19. Nature of Employment” from the dropdown list, if you have salary income.
In Filing status: In A20. select the Filed u/s radio button and from the dropdown list select if return filed on or before due date: 139(1)-On or before the due date.
From this assessment year this option came in ITR select the “YES” if applicable else “NO”.
Are you filing return of income under the Seventh proviso to section 139(1) but otherwise not required to furnish return of income? [Note: To be filled only if a person is not required to furnish a return of income under section 139(1) but filing return of income due to fulfilling one or more conditions mentioned in the seventh proviso to section 139(1)]
If selected “YES” then under each option select “YES” and enter the amount if applicable else select “NO”. In the case of “No” selected you need not fill any details under the seventh proviso to section 139(1).
Click on the “Save Draft” button and after that click on the “Rights Arrow” button to move to the next tab.
Income Details Tab:
Income Details Tab divided into different Parts from Part B1 to D12.
Part B1 to B4
B1. Income from Business & Profession. This will be auto-populated from E8 of Schedule BP.
B2. In part B2 you need to enter the details of Salary/ pension as per Form 16 or it may auto-populate match it from Form 16.
B3. In part B3 you need to fill income from house property ( Means rental Income from House Property).
Select the “Type of House Property”
Note:-Maximum loss from house property that can be set-off is INR 2, 00,000. To avail the benefit of carry forward and set of loss, please use ITR -3/5.
B4. In part B4 you need to fill the details of income from other sources like interest from saving bank account, Family Pension, Interest from Income Tax Refund, etc,.
Select the option from the dropdown lists and enter the amount.
Part C – Deductions and Taxable Total Income
You need to fill Part C of the return with the details of your investments, deposits, or payments made for claiming any deduction under chapter VI-A of the Income Tax Act.
Enter the amount in front of the appropriate option. It consists from Section 80C to 80U. Like
80C- Life insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc. Enter the amount if applicable.
80D Deduction in respect of Health Insurance premium.
80E- Interest on loan taken for higher education
Note: If you have made any such payments between 01.04.2020 to 31.07.2020 on which you wish to claim deduction for the assessment year 2020-21 then select the option “YES” and fill the details in the “Schedule DI”
In C6. 80D Deduction in respect of Health Insurance premium the amount column is disabled you need to fill “Schedule 80D”.
Schedule 80D Tab:
In this tab, you need to fill the details of the medical insurance premium paid for self and dependents if applicable.
1. Select the option “Whether you or any of your family member (excluding parents) is a senior citizen?” to 1. Yes, 2. No, or 3. Not claiming for Self/ family.
If “Yes” selected then enter the amount of Health Insurance, Preventive Health Checkup and Medical Expenditure (This deduction to be claimed on which health insurance is not claimed) paid during the year.
2.Select the option “Whether any one of your parents is a senior citizen)”to 1. Yes, 2. No, or 3. Not claiming for parents and then enter the amount as per the case.
Click on “Save Draft” button.
Schedule 80G Tab:
Enter the details of donations made to certain funds and charitable institutions during the year (if any).
a . Donations entitled for 100% deduction without qualifying limit
b . Donations entitled for 50% deduction without qualifying limit
c . Donations entitled for 100% deduction subject to qualifying limit
d . Donations entitled for 50% deduction subject to qualifying limit
e . Donations ( a + b + c + d ). It will be auto-calculated as per information entered in the a to d.
Click on “Save Draft” button.
Now come to schedule “BP”, here in SCHEDULE BP you need to fill – Details Of Income From BUSINESS OR PROFESSION.
COMPUTATION OF PRESUMPTIVE BUSINESS INCOME UNDER SECTION 44AD/ 44ADA/ 44AE
Enter the Name of Business, select the Business Code from the dropdown list and Description.
Enter the Gross Turnover or Gross Receipts:
a. Through a/c payee cheque or a/c payee bank draft or bank electronic clearing system or prescribed electronic modes received before the specified date.
b. Any other mode
1. If income is less than the above percentage of Gross Receipts, it is mandatory to have a tax audit under 44AB and other ITR, as applicable, has to be filed
2. In case of INCOME FROM PROFESSIONS UNDER SECTION 44ADA: If income is less than 50% of Gross Receipts, it is mandatory to have a tax audit under 44AB and other ITR, as applicable, has to be filed.
3. Note-If the profits are lower than prescribed under S.44AE or the number of Vehicles owned at any time exceed 10 then the other ITR, as applicable, has to be filed.
After that Please furnish the information below for each GSTIN No. separately
GSTIN No.(s) and Annual Value of Outward Supplies as per the GST Return Filed
Enter the Financial Particulars of the Business. Note: For E11 to E25 furnish the information as on 31st day of March, 2020.
The mandatory fields are: 1. Sundry creditors, 2. Sundry debtors, 3. Cash-in-hand.
Click on “Save Draft” button.
Tax Details Tab:
Tax Details are prefilled and can be edited. Cross Verify it from 26AS, in case any addition require you can do it by adding or deleting rows in the required section.
After checking and verifying details in this schedule click on “Save Draft” button
Taxes Paid and Verification Tab
In this tab Total Taxes Paid will be auto-populated as per the details filed in the earlier tabs
Enter the details of Exempt income only for reporting purposes (If agricultural income more than 5000 use ITR-3/5).
In D21 Bank Account Details: Details of all Bank Accounts held in India at any time during the previous year (excluding dormant accounts). Check the details of the bank account.
Choose appropriate option to verify the income tax return.
Before submitting the form check each and every detail and then click on the “Preview & Submit” button.
After click on the “preview and submit button” basic error will be checked, correct that and once again click on the “Preview & Submit” button a pop will appear in the browser.
Click “Ok” to review the filled form or click cancel to return to the from and make changes.
Check the form details in the preview screen. The filled form can be downloaded as a preview PDF and click on “Edit” to modify any details.
If all the details are correct click on submit button and e-verify it.
Using the Offline Utility (Upload XML)
Download ITR Form & Import XML
For uploading XML you need to download the ITR-4 form from e-filing portal.
👉'”How to Download ITR Form? “
After downloading the ITR Form extract it and before start filling the details download Pre-filled XML from e-filing portal.
Now open the downloaded ITR-4 and import the downloaded XML. To import in excel utility click on “Import from XML” and If using java utility click on the “Open” button and select downloaded pre-filled XML. Check the imported details and correct if any wrong details.
Fill the Details
Enter the details as per form 16/16A, tax saving proof, business income etc. After that click on the “Validate” button and correct if any errors arises.
After validation of the form click on the “Generate XML” button the XML version of the return form will be generated and the path of the XML file will be specified by the system note that path.
Upload the XML
To upload the XML login to the e-filing portal and in the “Dashboard” click on Filing of Income Tax Return.PAN is auto-populated, select the:→ Assessment Year: 2020-21, →ITR Form Number: ITR-4, →Submission Mode: Upload XML.
Select one of the below option to verify your Income Tax Return and click on the “Continue” button
Click on the “Choose File” and select the XML file ( the generated XML) and click on the submit button and e-verify your return.
Source: e-filing Portal
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