ITR 3 and ITR 4 are the two forms applicable to taxpayers earning income from business and profession. Where ITR 3 applies to income from business profession, salary and other sources; ITR 4 applies to taxpayers who opt for declaring income under the presumptive scheme. Here are some more interesting facts about these ITR forms.
The ITR 3 for AY 2017-18 is applicable to every individual and HUF having income from proprietary business or carrying on a profession like architecture,accountancy, engineering, medical etc. ITR 3 may also include income from house property, salary/pension and income from other sources.
ITR-3 is one of the detailed ITRs wherein the person filing the return is required to give full particulars of his profit and loss during the period, and the assets and liabilities as at year ending date.
The ITR-3 has been divided into two parts – Part A and Part B
PART- A: General
Part A-BS:Balance Sheet as on 31stday of March2017 of the proprietary business or profession.
Part A-P&L: Profit &Loss Account for the financial year 2016-17.
Part A-OI [Other Information]:This would include mentioning themethod of accounting followed by the tax payer in the previous year, change in accounting method if any e.g. change from accrual system of accounting to cash system,valuation method employed for stock e.g. FIFO or weighted average method, amount allowed and disallowed under various sections etc.
Part A–QD: Quantitative details
Part B [TI&TTI]:It shows computation of total income and tax liability on total income.
The ITR-4 Form for AY 2017-18 is the Income Tax Return form for those taxpayers who have opted for the presumptive income scheme. The presumptive taxation scheme has been framed to provide relief to small tax payers from the tedious job of maintenance of books of accounts and getting them audited.
ITR-4 does not require detailed particulars about assets and liabilities, apart from:
ITR-4 is divided into:
|Category of Taxpayers||Due Dates|
|Individuals and business (to whom tax audit is not applicable)||31st July of every year|
|Individuals and business (to whom tax audit is applicable)||30th September of every year|
ITR is the tool with which government keeps track over income earned by the person. Hence, it is imperative to file ITR with utmost care and ensure that all disclosures of income have been made, so as to avoid any type of departmental scrutiny.