ITR-4 SUGAM AY 2020-21 – Whether Books of Accounts are REALLY not required to be maintained?

The CBDT welcomed the Professionals and Tax Payers in the New Year by notifying ITR-1 AND ITR-4 forms for AY 2020-21 (Notification G.S.R. 9(E) dated 3rd January 2020)

ITR-4, popularly known as SUGAM is for assessees taking benefit of non-maintenance of books of accounts and offering Income on Presumptive basis u/s

  1. Section 44AD – popularly known as the 6%/8% presumptive profit scheme for eligible business
  2. Section 44ADA – popularly known as the 50% presumptive profit scheme for eligible professions
  3. Section 44AE – popularly known as the Number of Trucks profit scheme

The ITR-4 Form NOW requires the assessees to furnish the below details

  1. Aggregate Cash and Bank Summary as per below table for Presumptive Business only ( aggregate reporting to be done for all presumptive business covered u/s 44AD,44ADA,44AE )
  Description Cash Bank (aggregate amount of all bank accounts)
G1 Opening Balance
G2 Receipts during the previous year ( with drop down in e-filing utility )
G3 Payments / Withdrawals during the previous year ( with drop down in e-filing utility )
G4 Closing Balance

“Note : Finalising a cash book is dependent on various factors viz cash expenses, cash receipt from debtors, cash payment to creditors, capital contribution in cash, capital drawn in cash. Thus earlier mechanism of maintaining only the sales turnover for presumptive business is no more sufficient. Even Small Business must maintain proper books of accounts so as to file correct particulars of income and information in the Income Tax Return.”

online tax returns: laptop with tax return page on screen, surrounded by office desk objects & smartphone with alert

Things Removed from the ITR-4  Form

Earlier, Business were required to furnish FINANCIAL PARTICULARS OF THE BUSINESS as per below table which is now removed from the form.

FINANCIAL PARTICULARS OF THE BUSINESS

NOTE For E11 to E25

E11 Partners/Members own capital E11  
E12 Secured loans E12  
E13 Unsecured loans E13  
E14 Advances E14  
E15 Sundry creditors E15  
E16 Other liabilities E16  
E17 Total capital and liabilities (E11+E12+E13+E14+E15+E16) E17  
E18 Fixed assets E18  
E19 Inventories E19  
E20 Sundry debtors E20  
E21 Balance with banks E21  
E22 Cash-in-hand E22  
E23 Loans and advances E23  
E24 Other assets E24  
E25 Total assets (E18+E19+E20+E21+E22+E23+E24) E25  

The Author Mr. Raj C Doshi is a CA in Practice and Proprietor at R C D & Co., Chartered Accountants, Mumbai.

(Author can be reached at raj@rcdco.in)

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Author Bio

Qualification: CA in Practice
Company: R C D & Co. Chartered Accountants
Location: Mumbai, Maharashtra, IN
Member Since: 03 Apr 2019 | Total Posts: 5
R C D & Co. is a modern age CA firm providing robust people, process and technology solutions in multi-disciplinary fields. View Full Profile

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2 Comments

    1. Raj Doshi says:

      The e-filing utility is expected to broadly have various transaction heads so we would have to put in the amounts based on the cash book summarised. So a finalised and client certified cash book must be placed on record.

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