1 week ago

Taxpayers Need Key Checks for ITR-3 and ITR-4 Filing

Filing income tax return by 31 August? Key schedules to note in ITR-3 and 4 forms — and how to verify them · livemint.com

People with business or professional income may use ITR-3 or ITR-4 to report their taxes.

They should fill in the right sections and compare the numbers with their records.

ITR-3 usually requires more details about profits, assets, capital gains, investments and losses.

ITR-4 is simpler and includes areas such as salary, house property, other income and deductions.

Business turnover should match sales records, GST information, bank receipts and tax statements.

Presumptive-tax rules use set percentages for some businesses and professionals.

Taxpayers should keep documents such as bank records, invoices, tax certificates and property papers.

For AY 2026-27, the forms include several new or expanded reporting fields.

Key facts

ITR-3 schedules: Part A-Profit and Loss Account, Part A-Balance Sheet, BP, CG, VDA, OS, and where relevant CYLA, BFLA and CFL.
ITR-4 sections: Salary or Pension, House Property, Other Sources, Chapter VI-A Deductions and Payment Schedules.
Turnover verification: Reconcile sales with the sales register, GST returns, bank and payment-gateway receipts, AIS and TDS certificates.
Section 44AD: Generally treats 6% of eligible digital receipts and 8% of other eligible receipts, or actual income if higher, as income.
Section 44ADA: At least 50% of gross professional receipts is treated as income.
AY 2026-27 changes: ITR-4 permits reporting income from up to two houses and includes a field for uncollected rent; ITR-3 separately captures F&O turnover and trading income.

livemint.com · 1 week ago