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ITR-4 Profit and Loss

Romeo (Working) (87 Points)

04 December 2015

Respected Sir/Madam,

I have a doubt regarding the P&L in itr-4 form

THis is how I have filled my P&L in itr-4 form

Part A-P & L- Profit and Loss Account for the financial year

2. Other income
x. Any other income (specify nature and amount)
Nature Amount
PROFIT ON F&O 671250

38. Other expenses (specify nature and amount)
Nature Amount
ALL EXPENSES INCURRED 90855

I am an individual trading from home. I have mentioned my gross profit of F&O in OTHER INCOME, and all the brokerage charges of F&O in OTHER EXPENSES; is this the correct way to fill P&L sheet in itr-4 form or will this be rejected?
Awaiting your reply.
Thank You.

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9 Replies

CA Goutam Sharma (Chartered Accountant in Practice) (468 Points)
Replied 04 December 2015

No Problem. Its ok till you have supporting documents, which I think you will definately have owing to the nature of transacton. However, You may like to change the Term for Expenses from All Expenses Incurred to Brokerage & others or something specifically indicating the nature of expenses

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CA Goutam Sharma (Chartered Accountant in Practice) (468 Points)
Replied 04 December 2015

Supreme Court has ruled in cases that mere Specifying the Values in wrong feilds of Return does not amount to Concealment of income and do not attracts any penalty or interest if the tax determined was paid.

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Romeo (Working) (87 Points)
Replied 04 December 2015

Thank you Sir for your quick and accurate reply.

CA Goutam Sharma (Chartered Accountant in Practice) (468 Points)
Replied 04 December 2015

My Pleasure. I generally try to give atleast an hour to Our Such a Nice platform of Professional

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Romeo (Working) (87 Points)
Replied 04 December 2015

Sir your reply has cleared many of my doubts. Your efforts here for making taxation simple and easy for common people like me are really appreciated. Keep up the good work and thank you once again :)

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Hitesh Khanna (Accounting & Finance Taxation Company Law Audit ) (839 Points)
Replied 04 December 2015

I would advise you to go through the items of Pl Account once again. You will find specific heads for claiming expenditure rather that claiming all the expenses under one single head that too under "other expenses" .

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Ketan Kapoor (Audit) (124 Points)
Replied 05 December 2015

If the Other Expenses include "Commission or Brokerage" Paid, then I would advise you to put the same in Point no. 22(ii) of the P&L Sheet. Rest of the expenses can be put in Point 38, but specify the nature of other expense if possible.

Now you state that you have already filed your return. There is no problem at all even if you have put the said expenses in a different head. What ultimately matters is that the income should be same both ways. According to tons of High Court and many supreme court rulings, merely specifying the values in wrong feilds of Return does not amount to Concealment of income and do not attracts any penalty or interest if the tax determined was paid(Courtesy Goutam Sharma ji). I agree with the expert at this point.

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