Business Income tax return for financial year 2019-2020

Last Updated On: June 7, 2020, 1:52 a.m.
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Business Income Tax Return for FY 2019-2020 : ITR-4

Due to the problems faced by the taxpayers in meeting the compliance requirements under lockdown conditions i.e COVID-19 pandemic, the Finance Minister had announced several relief measures relating to statutory and regulatory compliance.

Recently, the Central Board of Indirect Tax (CBDT) has revised ITR forms for the financial year 2019-2020 and Assessment year 2020-2021.

As we are aware that on 2nd June 2020, form ITR-1 has been already made available by the department on the e-portal. They had also informed that other ITR forms will also be made available shortly.

On June 5th, 2020, Department has made Income Tax Return Utility for ITR-4 availability on the e-portal for filing Income Tax Returns.

Who can File ITR-4?

  • Individual, HUF, and Firms (firms other than LLP)
  • Being a resident having total Income of Rs.50 lakh, having Income from salaries, Income from House Property, any Income received as interest.
  • Agriculture Income up to Rs.5000.
  • Professional Income less than Rs.50 lakhs.
  • Business income less than Rs.2 Crore.

Who cannot apply ITR-4?

  • Business profit of less than 6%.
  • Professional profit of less than 50%.
  • Non-Resident.
  • Any Individual who is a director in any company or has invested in unlisted equity shares of a company.
  • Income from Commission or Brokerage.
  • Any individual who has joint ownership of house property cannot file both ITR-1 and ITR-4.

Key Additions made in the Form ITR-4

  1. Disclosure related to Cash deposits, Foreign Travel, and Expenditure on the consumption of electricity 

Final Budget, 2019 added a seventh provision in section 139(1) w.e.f. 1st April 2020 which states as under:

A person who is not required to furnish a return under 139(1) and during the financial year 2019-20.

  • An individual who has deposited an amount or aggregate of the amount exceeding Rs.1crores in more than one current account maintained with a banking company or a co-operative bank; or
  • An individual who  has incurred expenditure of an amount or aggregate of the amount exceeding Rs.2 lakh for himself or any other person’s for travel to a foreign country; or
  • An Individual who has incurred expenditure of an amount or aggregate of the amounts exceeding Rs.1 lakh towards consumption of electricity.

 

A new addition has been added to the Form ITR-4 as seen in the below image.

 

 

  1. Schedule DI
  • The new return form has a special schedule named DI where the taxpayers, in order to avail deductions under chapter VIA-B for the financial year 2019-20, have to report the investments/payments/deposits so made from the period starting 1st April 2020 to 30th June 2020.
  • From the total eligible amount of investments/payments/deposits so made for the financial year 2019-20, the taxpayers shall have to separately disclose investments/deposits/payments made during the extended period (01.04.20 to 30.06.20) in order to claim the deduction for the same for this financial year under chapter VIA-B i.e. under section 80C i.e PPF, Life insurance premium, 5 years FD, etc. Section 80D Mediclaim, medical expenses, preventive health check-up, etc and section 80G (Donations), etc.

 

  1. Schedule 80D

This time a new schedule 80D has been added in the ITR-4  for claiming deduction under Section 80D of the Income Tax Act i.e. for medical insurance premium, expenditure, preventive health check-up etc.

The Division of amounts under each subhead shall be required to fill in this.

 

The extended last date to file ITR-4 is till 30th November 2020.

All the taxpayers are recommended to file the form ITR-4 after June 30th, 2020 as they can avail the benefits of claiming deductions under Chapter VIA-B

To file your ITR forms you can either do it by yourself by visiting the website or can take the help of our professionals on Legal Suvidha for filing the forms or any queries related to Income Tax Returns.

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