ITR4 is used for filing income from business or profession by an individual or HUF. This form contains four major classifications in accordance with the type of information.
The first section is made for disclosing the balance sheet figures while the second portion is about the expenses, income and profit or loss from operation. The third section is about the summary of total income from different sources and the details of tax. The last sections is vast area contains the details of all other income like salary, house property,
Important check points
- While filling balance sheet, the amount in the source of fund should be equal to application of funds.
- The profit from profit and loss account should be added to the proprietor’s capital in the source of fund. If it is loss the amount can be shown either in the last item of Application of funds (profit and loss account/accumulated balance).
- The current liabilities of the balance sheet should be entered in the space provided in the application of funds and which will be deducted from the current assets already entered will result in net current asset.
- The Part A - OI; If your turn over is less than 1 crore and a simple business venture, the first two items are to be filled in, others have no relevance.
- Part A - QD; If it is a service oriented concern no significance to fill this data.
- The schedule EI is the place where the exempted income not to tax but for reporting is to be entered here.
- Schedule FSI, where the details of foreign assets are to be filled in.
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