ITR-4 (PRESUMPTIVE INCOME) MANDATORY CHANGES


#1

From this year onwards; ITR 4 have some columns in FINANCIAL PARTICULARS OF BUSINESS which are MANDATORY now… I leave them blank last year as these were not mandatory……E15: SUNDRY CREDITORS E19: INVENTORIES E20: SUNDRY DEBTORS E22: CASH-IN-HAND…Kindly guide me regarding about these columns and please keep in mind that last year I filled 0 in all these columns @nithin @TAXIQ.IN It seems that they want an assessee to make a balance sheet of his business where from sundry debtors and sundry creditors will have to be obtained…


#2

The New ITR 4 has made mandortory for every person to the Financials positions :-

  1. Sundry Creditors:- Sundry creditors are people to whom you owe money , It can be bills outstanding on 31st march. These number are as on 31st march which you might have subsequently paid in the Next month. Example post paid mobile bill paid after March can be put under Sundry creditors .

  2. Inventories :- If you classify your equity investment as Trader , You can mention here the Value of your holding which can be valued at cost or Market value which ever is less scrip wise.

  3. Sundry Debtors :- Sundry debtors where people owes money to you can be your Trading account balance with the Broker .

  4. Cash in Hand :- Cash & Bank Balance as on 31st March.

Regards


#3

Thanks @TAXIQ.IN for the detailed explanation of these terms…I requested you to please correct me if I wrongly understood these terms…
1)I mainly trade in futures & options…so as there was no equity investment or position made by me on 31 March 2018 so…INVENTORIES-0
2)AND my TRADING BALANCE with ZERODHA were 12,40,599 on 31st MARCH so…SUNDRY DEBTORS-12,40,599…
3)Bank balance on 31st march was 8,000 so…CASH-IN-HAND-8,000…
4)I took a loan from LIC on my INSURANCE POLICY of 1,98,000 in FEB.2017 for which I have to pay 9,500 as interest every 6 months…now I have query regarding this loan amount…whether I should put this amount in SUNDRY CREDTORS or in other categories like SECURED LOANS; UNSECURED LOANS…Can I add this half yearly interest payment of 9,500 in SUNDRY CREDTORS…
Please guide me in filling ITR-4…I belong to a small town where CA’s don’t even know that ITR-4 can be used by stock market trader…I have to do it myself


#4

LIC loan can be classified under secured loan as it will against your policies and on sundry debtors though it’s not in nature of debtors as Zerodha is supplier of service to you but when advance given to vendor can be classified under debtors.

Rest all correct and moreover if you have done substantial transactions instead of ITR 4 file ITR 3 .


#5

In FINANCIAL PARTICULAR OF BUSINESS section of ITR 4 I have one query that IS it MANDATORY that ASSETS and LIABILITIES should be EQUAL or SAME as it is supposed to be in the BALANCE SHEET of ITR 3…as in ITR 4 it is supposed that whomsoever is filling is not maintaining BOOK OF ACCOUNTS…so if I fil

l zero(0) in these MANDATORY COLUMNS: SUNDRY CREDITORS (LIABILITY) , SUNDRY DEBTORS and INVENTORIES while I fill some random amount like 10,000 in CASH-IN-HAND (ASSETS)…then my liability comes to zero while my assets become 10,000 in E17 and E25 columns of ITR 4 respectively as I am avoiding to fill TRADING ACCOUNT LEDGER BALANCE in any of these columns as most of the other traders also not showing LEDGER BALANCE in SUNDRY DEBTORS …Can I File ITR 4 without balancing total assets and liabilities in financial particulars of business section…Kindly reply @TAXIQ.IN @nithin…it would be a great help for me


#6

No need for Assets = (Equal to) Liabilities in above case. you can also cross verify by Validating ITR.