Instructions for filing ITR-4-SUGAM for A.Y. 2018-19

Article contains Instructions for filing ITR-4-SUGAM for Assessment Year 2018-19 / Financial Year 2017-18 based on ITR Released by CBDT vide its notification no. Notification No. 16/2018-Income Tax / G.S.R. 332(E) dated: 03/04/2018. 

Instructions for filling ITR-4 SUGAM  for A.Y. 2018-19

General Instructions

These instructions are guidelines for filling the particulars in this Return Form. In case of any doubt, please refer to relevant provisions of the Income-tax Act, 1961 and the Income-tax Rules, 1962.

Also Read-

Instructions for filing Sahaj (ITR-1) for A.Y. 2018-19

All about ITR-2 as applicable for A.Y. 2018-19

All about Income Tax Return Form ITR-3 (A.Y. 2018-19)

All about ITR-5 as applicable for A.Y. 2018-19

All about ITR-6 as applicable for A.Y. 2018-19

1. Assessment Year for which ITR-4-SUGAM Form is applicable

This Return Form is applicable for assessment year 2018-19 only, i.e., it relates to income earned in Financial Year 2017-18.

2. Who can use ITR-4-SUGAM Form

This Return Form is to be used by an individual/ HUF/ Partnership Firm whose total income for the assessment year 2018-19 includes:-

(a) Business income where such income is computed in accordance with special provisions referred to in sections 44AD and 44AE of the Act for computation of business income; or

(b) Income from Profession where such income is computed in accordance with special provisions referred to in sections 44ADA; or

(c) Salary/ Pension; or

(d) Income from One House Property (excluding cases where there is brought forward loss or loss to be carried forward under this head); or

(e) Income from Other Sources (excluding Winning from Lottery and Income from Race Horses).

Note 1: The income computed shall be presumed to have been computed after giving full effect to every loss, allowance, depreciation or deduction under the Income-tax Act.

Note 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.

3. Who cannot use this ITR-4-SUGAM Form

SUGAM cannot be used in following cases:-

(a) Income from more than one house property or where there is brought forward loss or loss to be carried forward under this head; or

(b) Income from Winnings from lottery or income from Race horses; or

(c) Income under the head ―Capital Gains^‖, e.g. Short-term capital gains or long-term capital gains from sale of house, plot, shares etc.; or

(d) Income taxable under section 115BBDA; or

(e) Income of the nature referred to in section 115BBE; or

(f) Agricultural income in excess of ₹5,000; or

(g) Income from Speculative Business and other special incomes; or

(h) Income from an agency business or income in the nature of commission or brokerage; or

(i) Person claiming relief of foreign tax paid under section 90, 90A or 91; or

(j) Any resident having any asset (including financial interest in any entity) located outside India or signing authority in any account located outside India; or

(k) Any resident having income from any source outside India.  

4. SUGAM form is not mandatory

SUGAM ITR Form shall not apply at the option of the assessee, if:-

(i) the assessee keeps and maintains all the books of account and other documents referred to in section 44AA in respect of the business or profession;

(ii) the assessee gets his accounts audited and obtains a report of such audit as required under section 44AB in respect of the business or profession.

In the above scenarios, regular ITR-3 or ITR-5, as the case may, should be filed and not SUGAM.

5. Annexure-less Return Form

No document (including TDS Certificate) should be attached to this Return Form. All such documents enclosed with this Return Form will be detached and returned to the person filing the return.

6. Manner of filing ITR-4-SUGAM Form

This Return Form can be filed with the Income-tax Department in any of the following ways–

(i) by furnishing the return in a paper form;

(ii) by furnishing the return electronically under digital signature;

(iii) by transmitting the data in the return electronically under electronic verification code;

(iv) by transmitting the data in the return electronically and thereafter submitting the verification of the return in Return Form ITR – V;

NOTE:

Where the Return Form is furnished in the manner mentioned at 6 (iv), the assessee should printout two copies of Form ITR – V. One copy of ITR-V, duly signed by the assessee, has to be sent by post to – Post Bag No. 1, Electronic City Office, Bengaluru— 560500, Karnataka. The other copy may be retained by the assessee for his record.

Only the following persons have an option to file return in paper form:-

(i) an individual of the age of 80 years or more at any time during the previous year; or

(ii) an individual or HUF whose income does not exceed five lakh rupees and no refund is claimed in the return of income.

In case of a Firm, option to file return in paper form is not applicable.

7. Filling out the acknowledgment

Only one copy of this Return Form is required to be filed where the Return Form is furnished in the manner mentioned at 6(i). The acknowledgment/ITR-V should be duly filled.

8. Obligation to file return

Every individual or HUF whose total income before allowing deductions under Chapter VI-A of the Income-tax Act, exceeds the maximum amount which is not chargeable to income tax is obligated to furnish his return of income. The deductions under Chapter VI-A are mentioned in Part C of this Return Form. The maximum amount not chargeable to income tax in case of different categories of individuals is as follows:-  

Every firm shall furnish the return of income in this ITR Form, where income from business or profession is computed in accordance with section 44AD, section 44ADA or section 44AE.

Item by Item Instructions

 Part-A – General Information

Part B – Gross Total Income

Part –C – Deductions and taxable total income

Some of the major items for deduction under this part (applicable to individuals  and HUF only) are:-

Part –D – Tax Computation and Tax Status

Note: If you have more details to be entered in D22, then fill the following table and tear and attach the same with the return (in case return is filed in paper form).

Tax Computation Table

(i) In case of every individual (other than resident individual who is of the age of
60 years or more at any time during the financial year 2017-1 8) or HUF –

(ii) In case of resident individual who is of the age of 60 years or more but less than 80 years at any time during the financial year 2017-18

(iii) In case of resident individual who is of the age of 80 years or more at any time
during the financial year 201 7-1 8-

(iv) In case of a Firm, tax is to be calculated at flat rate of 30% of taxable income.

Verification

(a) (i) In case of individual, return of income can be verified by the individual himself, or by persons authorised on his behalf in cases referred to in sub-clauses (ii), (iii) and (iv) of clause (a) of section 140 of the Income-tax Act. In such cases however permanent account number of the authorised person is required to be mentioned in verification.

(ii) In case of HUF, return of income can be verified by the karta, or by any other adult member of family in cases referred to in clause (b) of section 140 of the Income-tax Act. His permanent account number is required to be mentioned in verification.

(iii) In case of firm, return of income can be verified by the managing partner of the firm, or by any partner (not being a minor), in cases referred to in clause (cc) of section 140 of the Income-tax Act. His permanent account number is required to be mentioned in verification.

(b) If the return is furnished in paper form, please complete the Verification Section, fill date and Sign in the space given. Without a valid signature, your return will not be accepted by the Income- tax Department.

(c) If the return is furnished electronically, the same is required to be furnished:-

(i) under digital signature; or

(ii) under electronic verification code; or

(iii) by submitting the verification of return in Form ITR-V.

(d) Please note that any person making a false statement in the return or the accompanying schedules shall be liable to be prosecuted under section 277 of the Income-tax Act, 1961 and on conviction be punishable under that section with rigorous imprisonment and with fine.

TRP Details

This return can be prepared by a Tax Return Preparer (TRP) also in accordance with the Tax Return Preparer Scheme.

If the return has been prepared by TRP, the relevant details have to be filled by him and the return has to be countersigned by him in the space provided in the said item.

Nature of business or profession

Please fill up the nature of business activity or profession and applicable business code from the table of business codes given at the end of this instruction. In case there are more than one business activities, please fill up three main activities or products along with applicable business codes.

Schedule BP

Schedule AL

(i) This Schedule is to be filled by individuals and HUFs giving details of properties held by the assessee and the corresponding liabilities. It is mandatory if your total income exceeds ₹50 lakh.

(ii) The assets to be reported will include land, building (immovable assets); financial assets viz. bank deposits, shares and securities, insurance policies, loans and advances given, cash in hand and jewellery, bullion, vehicles, yachts, boats, aircraft (movable assets) and interest held in the asset of a firm or association of persons (AOP) as a partner or member thereof.

(ii) In the case of non-resident and resident but not ordinarily resident, the details of assets located in India are to be mentioned.

(iii) For the purpose of Sl. No. (1) (i) under item B, jewellery includes – (a) Ornaments made of gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals, whether or not containing any precious or semi-precious stone, and whether or not worked or sewn into any wearing apparel; (b) Precious or semi-precious stones, whether or not set in any furniture, utensil or other article or worked or sewn into any wearing apparel.

(v) The amount in respect of assets to be reported will be:-

(a) the cost price of such asset to the assessee; or

(b) where Wealth-tax return was filed by the assessee and the asset was forming part of the Wealth-tax return, the value of such asset as per the latest Wealth- tax return in which it was disclosed as increased by the cost of improvement incurred after such date, if any.

(vi) In case the asset became the property of the assessee under a gift, will or any mode specified in section 49 (1) and not covered by (v) above:-

(a) the cost of such asset to be reported will be the cost for which the previous owner of the asset acquired it, as increased by the cost of any improvement of the asset incurred by the previous owner or the assessee, as the case may be; or

(b) in case where the cost at which the asset was acquired by the previous owner is not ascertainable and no Wealth-tax return was filed in respect of such asset, the value may be estimated at the circle rate or bullion rate, as the case may be, on the date of acquisition by the assessee as increased by cost of improvement, if any, or on 31^stday of March, 2018.

Previous owner shall have the meaning as provided in Explanation to section 49(1) of the Act.

Schedule IT

Please enter details of tax payments, i.e., advance tax and self-assessment tax paid.

NOTE: If you have more than Five Self-Assessment and Advance Tax Details to be entered, then fill the following table and tear and attach the same with the return (in case return is filed in paper form).

Schedule TCS

Please furnish the details of Tax collected at source.

NOTE: If you have more than two TCS Details to be entered, then fill supplementary Schedule TCS and attach the same with the return

Schedule TDS 1

Please furnish the details in accordance with Form 16 issued by the employer(s) in respect of salary income. Further in order to enable the Income Tax Department to provide accurate, quicker and full credit for taxes deducted at source, the taxpayer must ensure to quote complete details of every TDS transaction.

If you have more than three Form 16 details to be entered, then fill Supplementary Schedule TDS1 and attach the same with the return.

Schedule TDS 2

(1) Please furnish the details in accordance with Form 16A or Form 16C issued by the Deductor in respect of interest income, rental income or any other sources of income.

(2) All the tax deductions at source made in the current financial year should be reported in the TDS schedule.

(3) ―Unique TDS Certificate Number^‖. This is a six digit number which appears on the right hand top corner of those TDS certificates which have been generated by the deductor through the Tax Information Network (TIN) Central System.

(4) ―Year of tax deduction^‖means the financial year in which tax has been deducted. In this column fill up the four digits of relevant financial year. For example, if the deduction has been made by the deductor in the financial year 2017-18 fill up 2017 in the designated space.

(5) Enter the amount of gross receipt mentioned in the 26AS statement.

(6) Enter the amount of TDS deducted in own hands, as reflected in the 26AS If you are governed by Portuguese Civil Code and part of income is chargeable in your hands and part in the hands of your spouse, then enter only part of TDS corresponding to part income chargeable in your hands.

(7) Enter the amount of TDS deducted in the hands of spouse if section 5A is applicable, or in the hands of any other person as referred to in Rule 37BA (2), if the corresponding income is chargeable in your hands in this year. Ensure that the TDS amount is reflected in the 26AS statement of the spouse or the other person.

(8) Enter the amount of TDS credit available (i.e out of total TDS reported in Col. 6 and 7), which is being claimed in own hands for this year. Ensure that the corresponding income has also been offered in this year. For example, if any income is not chargeable to tax in this year then the corresponding TDS credit shall be allowable only in the year in which such income is chargeable to tax.

(9) Enter the amount of TDS credit available (i.e out of total TDS mentioned in Col. 6 and Col. 7), which is being claimed in the hands of your spouse, if section 5A is applicable, or in the hands of any other person as referred to in Rule 37BA.

NOTE: If TDS has been deducted in your hands, but whole or any part of the corresponding income is assessable in the hands of any other person, or vice versa, please ensure that the procedure laid down in Rule 37BA(2) of the Income-tax Rules, 1962 is followed for claiming credit of TDS in such cases.

NOTE: If you have more than four Form 16A/Form16C details to be entered, then fill supplementary Schedule TDS2 and attach the same with the return.  

BUSINESS CODES FOR ITR FORMS FOR A.Y 2018-19

*n.e.c. – not elsewhere classified

Republished with amendments.