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
The ITR-4 Form NOW requires the assessees to furnish the below details
|Description||Cash||Bank (aggregate amount of all bank accounts)|
|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 )|
“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|
|E17||Total capital and liabilities (E11+E12+E13+E14+E15+E16)||E17|
|E21||Balance with banks||E21|
|E23||Loans and advances||E23|
|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 email@example.com)