- CA Raj C Doshi
- | Income Tax - Articles
- 06 Jan 2020
- 16,254 Views
- 4 comments
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
- Section 44AD – popularly known as the 6%/8% presumptive profit scheme for eligible business
- Section 44ADA – popularly known as the 50% presumptive profit scheme for eligible professions
- Section 44AE – popularly known as the Number of Trucks profit scheme
The ITR-4 Form NOW requires the assessees to furnish the below details
- 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.”
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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Nice thoughtful article.
while placing all cash transaction (as said above in note) is it required all various factors as it is.