Checklist for filing of ITR 4 of Assessment Year 2020-21

ITR-1 & ITR 4 forms for A.Y. 2020-21 released for e-filing by Income Tax Department.

Who are eligible to file ITR-4?

• An Individual, HUF or Firm (other than LLP) who is ordinarily resident in India
• Income from salary/pension (for ordinarily resident person).
• Income from one house property but excluding brought forward losses and losses to be carried forward.
• Income from presumptive business or profession covered u/s 44AD, 44ADA & 44AE (for person resident in India).
• Family Pension (for ordinarily resident person)
• Income from other sources (other than income chargeable to tax at special rates)
• Total income upto Rs. 50 lakh

Who are not eligible to file ITR-4?

• Any person who is either Director in a company or has invested in unlisted equity shares.
• Any person who is partner in any firm
• Income from business and profession
• Income from presumptive business or profession covered u/s 44AD, 44ADA & 44AE (for not ordinarily resident and non-resident person)
• Capital gains/loss on sale of investments/property
• Person claiming deduction u/s 57 (other than deduction allowed from family pension)
• Income from other sources (including income chargeable to tax at special rates)
• Total income exceeding Rs. 50 lakh.
• Assessee has any brought forward losses or losses to be carried forward under any head of income.

Last minute checklist for error free ITR filing

• Permanent Account Number (PAN)
• Aadhaar Number
• GSTIN No. and turnover as per GST returns
• Match book turnover with GST returns
• Form 16A & 16C (if any issued by deductor) and TDS certificate
• Form 16 from employer. An employee who has change the job in Financial Year can have 2 or more form 16.
• TDS certificate from employer
• Match tax details with 26 AS
• Statement of interest paid on house loans
• Interest statements showing interest earned on savings bank account and fixed deposits
• Proof of tax saving investments/expenses (80C to 80U)
• Bifurcation of details of investment made during the period from April 1, 2020 to June 30, 2020.
• Other investment documents, such as statement of interest paid on education loan etc.
• Bank account details with IFSC code

Must ask these questions while filing ITR to the concern person.

Have you deposited amount or aggregate of amounts exceeding Rs. 1 Crore in one or more current account during the previous year?

Have you incurred expenditure of an amount or aggregate of amount exceeding Rs. 2 lakh for travel to a foreign country for yourself or for any other person?

Have you incurred expenditure of amount or aggregate of amount exceeding Rs. 1 lakh on consumption of electricity during the previous year?

Do I have to file income tax return electronically?

Every taxpayer shall file the income-tax return electronically except a super senior citizen (whose age is 80 years or above during the previous year 2019-20) who furnishes the return either in ITR-1 or ITR-4.

Verify your return 

It is important to verify your return otherwise your ITR filing will be invalidated. You can opt for either physical verification or e-verification.

• For physical verification you need to print a copy of ITR-V (Income Tax Return Verification form) that should be signed in blue ink, and the physical copy sent to the Centralized Processing Centre (CPC) Bengaluru via ordinary post within 120 days of filing ITR. 
• Alternatively, you can complete e-verification within 120 days of ITR filing through several modes, including Internet banking, bank ATM, bank account number, Demat account number, and aadhaar OTP.

you can also have a glimpse on the checklist for filing of ITR 1 of AY 2020-21: https://carahuldmittal.blogspot.com/2020/06/last-minute-checklist-for-filing-of-itr.html

Disclaimer:  This is meant purely for general education purpose.While the information is believed to be accurate to the best of my knowledge, I do not make any representations or warranties, express or implied, as to the accuracy or completeness of this information. Reader should conduct and rely upon their own examination and analysis and are advised to seek their own professional advice. This note is not an offer, invitation, advice or solicitation of any kind. I accept no responsibility for any errors it may contain, whether caused by negligence or otherwise or for any loss, howsoever caused or sustained, by the person who relies upon it.

Thanks for reading my article.

CA Rahul Mittal

+91-99917-25373