Income Tax return financial Year 2021-22

 Documents required to file your Income Tax Return: Check list here

Types of income on which tax is leviable:

• Income from Salary
• Income from House Property
• Income from Business & Profession
• Income from Capital Gain
• Income from Other Sources

List of documents required to file your Income Tax Return:

How do I fill out the ITR-1 Form?

Documents which you should keep in hand before filling out your ITR-1 form are:

• Form 16: Issued by all your employers for the given Financial Year
• Form 26AS: Remember to verify that the TDS mentioned in Form 16 matches the TDS in Part A of your Form 26AS
• Receipts: If you have not been able to submit proof of certain exemptions or deductions (such as HRA allowance or Section 80C or 80D deductions) to your employer on time, keep these receipts handy to claim them on your income tax return directly.
• PAN card
• Bank investment certificates: Interest from bank account details – bank passbook or FD certificate
• Adhaar Card 

I earn income over Rs 50 lakhs. Which ITR form should I file this year ? 

• If you have income above Rs 50 lakhs , you can file ITR 2 ,ITR 3 or ITR 4 (Sugam) depending upon your source of income. 
• If you are salaried individual having income above Rs 50 lakhs, you should file ITR 2. 
• And if you are having income from  business or profession, then you should file ITR 3. 
• In case you are following presumptive income u/s 44AD /44AE, then you should file ITR 4 (sugam). 

ITR-4 Form A comprehensive guide to understanding the ITR-4 Form

ITR-4 Form is an income tax return form for those taxpayers, who have opted for the presumptive income scheme as per Section 44AD, Section 44ADA and Section 44AE and whose income is not more than Rs 50 lakh.

Presumptive Income & its Taxation – under section 44AD

When you are running a small business, you may not have enough resources to maintain proper accounting information and calculate your profit or loss. This makes it difficult to keep track of your income and taxes from such a business.

With this in mind, the Income Tax Department has laid out some simple provisions, where your income is assumed based on the gross receipts of your business. This method is called the presumptive method, where tax is paid on an estimated basis.

Features of this Scheme

• Your Net income is estimated to be 8% of the gross receipts of your business. But from FY 2016-17, if gross receipts are received through a digital mode of payment, then Net Income is estimated at 6% of such gross receipts and for cash receipts. However, the rate is the same at 8% of such cash receipts.
• You don’t have to maintain books of accounts of this business.
• You have to pay 100% Advance Tax by 15th March for such a business.
• No need to comply with the requirement of quarterly instalments due dates (June, sep, Dec) of advance tax.
  In case of Advance Tax, the benefit of paying the advance tax in one instalment by 15th March is only granted for the business for which this scheme has been opted for. If the taxpayer has income which is other than from such business, where his tax liability exceeds Rs 10,000 in a year, he has to pay advance tax on such other income
• You are not allowed to deduct any business expenses against the income.
  If you are running more than 1 business, the scheme has to be chosen for each business. For example, if you run 3 businesses where only 1 is assessed under section 44AD. The relief of not maintaining accounting records & no audit requirement is only applicable to the business to which this scheme applies. For other 2 businesses which are not covered under this section – the accounting records have to be maintained and audit is also required.

Eligibility Criteria for this Scheme

• Your gross receipts or turnover of the business for which you want to avail this scheme should be less than Rs 2 crore.
• You must be a ‘Resident’ in India. The scheme is not applicable to non-residents.
• This scheme is allowed to an individual, a HUF or a partnership firm. It is not available to a Company or an LLP (Limited liability partnership).
• The scheme cannot be adopted by the taxpayer, if he has claimed deduction under section 10, 10A, 10B, Section 10BA, or Section 80HH to 80RRB in the relevant year.

Not sure which ITR form you need to use? Read our guide for help.

Eligible Businesses 

• The taxpayer may be in any business – retail trading or wholesale trading or civil construction or any other business to avail this scheme.
• But this method of income computation is NOT applicable to: 
• Income from commission or brokerage
• Agency business
• Business of plying, hiring or leasing goods carriage (see section 44AE)
• Professionals – who are carrying on a profession of legal, medical, engineering, architectural, accountancy, technical consultancy, interior decoration, an authorized representative, film artist, company secretary and information technology. Authorized representative means – any person, who represents someone, for a fee or remuneration, before any Tribunal or authority under any law. Film Artist includes a producer, actor, cameraman, director, music director, art director, dance director, editor, singer, lyricist, story writer, screenplay writer, dialogue writer, dress designer – basically any person who is involved in his professional capacity in the production of a film.(see Sec 44ADA). These are the professions listed under section 44AA(1).

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Naveen sharma 

Director 

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novationknowledgesolutions@gmail.com

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