13 August 2024
You have filed your income-tax return in form ITR-4. As per TDS details in your Form 26AS, taxes have been deducted under sections 194IA/194IC/194S/194B/194BB/194BA, etc. of the Income-tax Act, 1961. These sections are reflected as (4IA/4IC/94S/94B/4BB/4BA) in Form 26AS. These sections imply heads of income for which form no. ITR-4 is not the appropriate form.
TDS is deducted under section 194I(a) for rent of plant & machinery. I have shown this income under the head INCOME FROM OTHER SOURCES. I am also showing rent from leasing good carriages under section 44AE and hence ITR-4 was being filed.
13 August 2024
not sure if this is the correct position. Time and again it has been held that the rental income received against Plant and machinery has been taxed under income from other sources.
13 August 2024
most probably issue here is that ITR-4 cannot be used for income from other sources except for the following categories:
Interest from Savings Account Interest from Deposit (Bank / Post Office / Cooperative Society) Interest from Income Tax Refund Family Pension Interest received on enhanced compensation Any other Interest Income (e.g., Interest Income from Unsecured Loan)
So the issue here is the choice of return. Not the head of income.
13 August 2024
I just filed the corrected return (ITR-3) showing Rental income of P&M under the head Income from other sources and rest of the business income under presumptive scheme. Let's see.
CAclubindia
