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This article is more than 5 month old.

Income tax return filing: Key things to know before using ITR-3 and ITR-4 forms

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Income Tax Department has notified 7 forms for filing ITR this year. These forms include Sahaj (ITR-1), Form ITR-2, Form ITR-3, Form Sugam (ITR-4), Form ITR-5, Form ITR-6 and Form ITR-7.

Income tax return filing: Key things to know before using ITR-3 and ITR-4 forms
The Central Board of Direct Taxes (CBDT) is likely to extend the deadline to file income tax returns (ITR) for the financial year (FY) 2020-21 (AY 2021-22), according to several media reports. Earlier, the deadline for filing ITR for FY21 was extended from July 31 to September 30, 2021 in the wake of the COVID-19 pandemic.
Income Tax Department has notified 7 forms for filing ITR this year. These forms include Sahaj (ITR-1), Form ITR-2, Form ITR-3, Form Sugam (ITR-4), Form ITR-5, Form ITR-6 and Form ITR-7.
Among these, ITR 3 can be used by an individual or a HUF if he/she has income from business or profession. Return in ITR 3 cannot be filed by any person other than an individual or a HUF.
ITR – 3 is also required to be filed by a person whose income is chargeable to tax under the head "Profits and gains of business or profession" is in the nature of interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him/her from a partnership firm.
Form ITR – 3 cannot be used by any person other than an individual or a HUF. Further, an individual or a HUF not having income from business or profession cannot use ITR – 3.
On the other hand, return in ITR 4 (Sugam) can be filed by an Individual/HUF/Firm (Other than LLP) whose total income for the year includes:
(a) Business income computed as per the provisions of section 44AD or44AE; or;
(b) Income from profession as computed as per the provisions of44ADA; or
(c) Income from salary/pension; or
(d) Income from one house property (excluding cases where loss is brought forward from previous years); or
(e) Income from other sources (excluding winnings from lottery and income from race horses dividend income in excess of Rs 10 lakh or unexplained Income, etc. as referred to in section 115BBE)
Further, in a case where the income of another person like spouse, minor child, etc., is to be clubbed with the income of the taxpayer, this return form can be used where income to be clubbed falls in any of the mentioned categories.
Form ITR – 4 (SUGAM) cannot be used by an individual/HUF:
• Who is a non-resident or not ordinarily resident
• Who is a director of a company
• Whose total income exceeds Rs 50 lakh
• Who has income from more than one house property
• Who has held unlisted equity shares at any time during the previous year
• Who claims a deduction under section 80QQB or section 80RRB in respect of royalty from patent or books
• Who claims a deduction under section 10AA or Part-C of Chapter VI-A
• Who has brought forward loss or losses to be carried forward under any head
• Who has an income of the nature specified in section 17(2)(vi) on which tax is payable or deductible under section 191(2) or section 192(1C).
• Person claiming deduction under section 57 from income taxable under the head 'Other Sources' (other than deduction allowed from the family pension).
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