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

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 3^rd 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 )

“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.”

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.

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)