Income Tax Return Form ITR 4- Sugam | For FY 2020-21 (AY 2021-22)

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What is the due date of filing ITR-4 for FY 2021-22?

For FY 2020-21 (AY 2021-22) the due date of filing ITR-4 was 31st December 2021 But, a belated ITR-4 can still be filed till 15th February 2022, especially for the one whose account needs to be audited.

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How do I fill ITR 4?

You can submit ITR4 form by 2 ways

• Online
• Offline

Offline: The ITR form can be filed offline when the age of the Individual is 80 years or more.Also, when The income of the individual is less than Rs 5 lakhs and who do not have to claim a refund in the income tax return

There are two ways income tax can be filed. The return can be filed offline by furnishing a return in a physical paper form or a bar-coded return. Post that,The Income Tax Department will issue you an acknowledgement at the time of submission of your physical paper return.

Online: You can file the return electronically by using a digital signature. If you are submitting your ITR-4 form using a digital signature, you will be receiving the acknowledgement to your registered email ID.You can also download it manually from the income tax website. While you are sending the data electronically and then submitting the verification of the return in the return form ITR-V.

You need to sign it and then send it to the Income Tax Department’s Office Bangalore within the 120 days of the e-filing.

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How to fill form ITR-4?

Let us now understand ITR 4- Sugam, form in detail for each of its categorized parts.

Part A: Personal Information & Filing Status

The first part of this form is related to the personal information of the assessee such as

• Name,
• PAN,
• Address,
• Date of Birth,
• Email and
• Mobile number, etc.

The next part shows the filing status of the return, i.e., whether it is a revised return or return in response to some notice issued by the income tax department or return filed by the assessee himself or by any of his representatives and details of such representative.

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Part B: Gross Total Income

Now comes the part for the calculation of Gross Total Income.It is the aggregate of income calculated under all different heads of Income.

• Income from Business and Profession is calculated in the schedule on a presumptive basis based on the relevant section.
• Income taxable under the head ‘Salary’: it is to be calculated the same as in the case of ITR-1. First, determine the monetary and non-monetary part of the salary and then deduct the allowance exempt under section 10. Then allow deduction under section 16, i.e., standard deduction, entertainment allowance, professional tax. To get the amount chargeable to tax under the head income from “Salaries.”
• Income from House Property: Calculation of income from house property where maximum loss that can be set off in a period is limited to Rs. 2 Lakhs.
• Other sources: Income from other sources can be calculated by specifying the source of such income from the drop-down list. After that, a standard deduction u/s 57 (iia) is available toward the family pension.

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Part C: Deductions and Total Income

Now, allow for deduction under Chapter- VIA of the Income Tax Act 1961. The quantum of such deduction is based on the amount invested by the assessee.

Now, calculate the tax liability based on the income tax slab applicable to the income group of the assessee. And allow for Rebate u/s 87 A if income is less than Rs. 3.5 Lakh. And allow for Relief u/s 89 in respect of salary arrears received.

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Schedule BP of ITR 4 – Sugam

The schedule for calculating Business Income is as follows:

• The first set of presumptive income is for Business income under section 44AD.
• Presumptive income of Profession is covered under section 44 ADA
• And for goods carriage, the presumptive income is calculated under section 44 AE.
• It also contains a column for information regarding Turnover/ Gross Receipt reported for GST.
• After that, it also contains financial particulars for Business.

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TDS Schedule under Indian Income Tax Return form ITR 4

Part 19 is related to the Tax Deducted at source from salary. This schedule is populated using the Form 16 issued by the Employer. It incorporates details such as:

• TAN of deductor,
• Name of the employer,
• Income under Salary, and
• Tax deducted thereon.

Part 20 TDS 2(i) is for TDS on Income other than Salary as per the Form 16A furnished by the deductor.

And Part 20 TDS 2(ii) is for TDS on Rent and as per Form 16C TDS certificate for Rent.

Schedule IT of Income Tax Return Form ITR 4

Part 21 is for providing details regarding the payment Advance Tax during the year and self-assessment tax paid at the end of the period. This Schedule requires the assessee to fill the information given on the payment challan such as BSR Code, Serial Number of Challan, date of payment, amount, etc.

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Schedule TCS of Income Tax Return Form ITR 4

TCS Schedule 22 consists of details regarding the Tax Collected at the source and as mentioned in the Form 27D issued by the collector.

Part 21 is for providing details regarding the payment Advance Tax during the year and self-assessment tax paid at the end of the period. This Schedule requires the assessee to fill the information given on the payment challan such as BSR Code, Serial Number of Challan, date of payment, amount, etc.

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Schedule – Taxes Paid and Verified of Income Tax Return Form ITR 4

In the next schedule, the total tax liability that the assessee is required to pay is automatically calculated. Such liability is calculated after considering the details furnished in the previous schedule. Net liability or refund is calculated by taking the difference of total tax paid from tax liability calculated based on income.

• Column / Part 28 is for providing the bank account details of assessee held in India at any time during the previous year but not including the dormant accounts.
• The above bank account details are followed by the Declaration regarding true and fairness of the information provided. And filing the return in the capacity of Self, Karta, Representative, and Partner.
• If the Tax return Preparer prepares the return, the details of such TRP is to be provided along the amount to be paid to TRP.

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Schedule 80G of Indian Income Tax Return Form ITR 4

The Last schedule is to calculate the total amount of deduction to be claimed under section 80G for contributions/ donations made to the charitable institutions.

• The First two parts are for calculating deductions without any qualifying limit specified under the law. The listing is to be made as the donations eligible for 100% deductions and includes details of the donee and type of donation made.
• After that donation eligible for a deduction of 50% of the donated amount.
• The next two parts i.e, C & D are for donations having qualifying limit as specified under the Income Tax Act 1961.
• Part E reflects the cumulative deduction amount claimed under section 80D.

For further details on ITR forms Read More.

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What are the different ways of submitting ITR4?

There are two options to file ITR-4 :

1- Paper Form : It can be filed in a physical form or by furnishing bar coded return. Paper Form ITR is allowed in only in case of super senior citizen.

2- Electronically : Return can be filed on the e-filing portal of Income Tax Department. After filing, return needs to be verified through

• Digital signature or
• Authenticating by EVC or
• By sending ITR-V (duly signed) by post to CPC in 120 days

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What are the major changes made in ITR-4 for AY 2021-22?

Major changes in ITR-4 for FY 2021-22(AY 20-21) include:

• If any person has presumptive income and holds directorship in a company then he/she cannot file ITR-4, he needs to file ITR-3.
• If any person has presumptive income and holds shares of an unlisted company then the individual is not eligible to file ITR-4. In such cases, he needs to file ITR-3.
• Only super senior citizens can file a paper form return.

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Verification of ITR-4

After successful filing, the income tax return needs to be verified. The verification is required to be done within 120 days of filing ITR. It can be done online i.e. e-verification through an OTP (One Time Password) or EVC (Electronic Verification Code). Alternatively, the offline process can be followed by sending the signed copy of ITR V to CPC Bangalore. For more details refer to our guide on How to verify your Income Tax Return.