6 Key Changes in ITR-4 for A.Y. 2018-19

31st July buzz has already begin for tax filers. To avoid the last minute rush and filing belated return which can attract you fee u/s 234F this time, it’s better to equip with the changes in ITR Forms now. ITR 4 is mainly used by person carrying business and profession and offering income for presumptive taxation. A series of changes have been incorporated in ITR 4 – Sugam this year, where some are in line with ITR 1 and others like quoting GST details ensuring greater harmony between direct and indirect taxes. Lets sequentially decode How filing of ITR 4 will be different this year

  • GST details now required

If you are filing ITR 4 and offering income for presumptive taxation, this amendment will affect you directly!! Now together with furnishing particulars of presumptive income you will be required to quote

?GSTR No. and
?Amount of turnover/Gross receipt as per the GST return filed

This change will enable consensus between the disclosures you have while filing GST return and the details disclosed to Income Tax Department. The data if differs will attract you a notice, through which the department can seek for clarifications to the mismatch. So, its time to be vigilant for ITR 4 Filers this year. Keep your GST returns handy before filing ITR!!

  • Financial Particulars of Business

Though the mandatory particulars have been kept intact by the CBDT. A list specifying additional Financial Particulars of Business have been made part of ITR 4.

  • Modification to TDS Schedule

Three noticeable modifications given effect to in Schedule TDS are

?Details of 26QC (filed by tenant) will now be required, in nexus to section 194IB.
?PAN of deductor / tenant who has deducted 5% TDS on monthly rent of 50,000 or more of landlord u/s 194IB is to reported.
?Income from spouse – now not only the income but also details such as Income, TDS, ?PAN will be required in ITR4.

  • NR to specify Foreign Bank Account

Non Residents are now allowed to give details of one foreign bank account withheld. This will facilitate direct credit of tax refund (if any) to such account. The adaptation seems to ease out procedural inconveniences for NRs.

  • Selection of nature of business or profession

While filing return, it is to be noted that the Codes for selecting nature of business or profession have been changed and their scope has been enlarged in the new ITR4..

  • Changes at par with ITR 1

Following alterations in ITR 4 have been introduced in line with ITR 1

?Detailed breakup for salary and house property

Tax department will not entertain just one line disclosures for salary and house property incomes. Instead in depth particulars of salary such as

? Salary (excluding all allowances, perquisites and profits in lieu of salary)
? Allowances not exempt
? Value of perquisites
? Profits in lieu of salary
? Deduction u/s 16
? Total income chargeable under the head salaries

And, if house property is let out, furnish details such as

? Gross rent received/ receivable/ let-able value
? Tax paid to local authorities
? Annual Value
? 30% of Annual Value
? Interest payable on borrowed capital
? Total Income charged under the head house property

Although the revised information seeked by the tax department will increase transparency and can easily be quoted from Form 16 in case of salary and loan statements in case of house property. The additional disclosures will inculcate additional efforts for a common user might seem to add to your hardships.

?Fee u/s 234F

No more Late Filers!! The government has proactively worked on implementing this saying by introducing late fee u/s 234F for all habitual late filers. The fee u/s 234F will attract as follows

? For ITR filed after 31st July 2018 ? 5,000
? For ITR filed after 31st Dec 2018 ? 10,000
? For those having income upto 5 lakhs only ? 1,000


Nothing is too tough if well prepared for!! The same holds true for ITRs and ITR forms. Through this blog we tried acknowledge you with the amendments incorporated by CBDT in ITR 4 for A.Y 2018-19. If you still have any queries, doubts or willing to know more about ITR Forms
refer our guide. And for any assistance with filing your ITR Contact our expert e-CAs!!

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