ITR 4 (SUGAM) Validation Rules for AY 2017-18

1 ITR 4 ( sugam ) Validation Rules for AY 2017 -18 Version April 2017 ITR 4 ( sugam ) Validation Rules for AY 2017 -18 V Page 1 Revision List Document Name : ITR 4 ( sugam ) Validation Rules for AY 2017 -18 Version Number : Revision Number Revision Date (DD/MM/YYYY) Revision Description 1st April 2017 Validation Rules document published in production ITR 4 ( sugam ) Validation Rules for AY 2017 -18 V Page 2 Table of Contents 1. Purpose .. 3 2. Validation Rules .. 3 Category A: .. 4 Category C: .. 6 ITR 4 ( sugam ) Validation Rules for AY 2017 -18 V Page 3 1. Purpose The Income Tax Department has provided free return preparation software in downloads page which are fully compliant with data quality requirements.

2 However, there are commercially available software or websites that offer return preparation facilities as well. In order to improve the data quality received through in ITRs prepared through such commercially available software, various types of Validation Rules are being deployed in the e-Filing portal so that the data which is being uploaded can be validated to a large extent. Taxpayers are advised to review the same to ensure that the software that is used is compliant with these requirements to avoid rejection of return due to poor data quality or mistakes in the return. Software providers are strictly advised to adhere to these Rules to avoid inconvenience to the taxpayers who may use their software. 2.

3 Validation Rules The Validation process at e-Filing/CPC end is to be carried out in ITR 4 ( sugam ) for each defect as categorized below: Category of defect Action to be Taken A Return will not be allowed to be uploaded. Error message will be displayed B Return data will be allowed to be uploaded but the taxpayer uploading the return will be informed of a possible defect present in the return u/s 139(9). Appropriate notices/ communications will be issued from CPC. C Third party utility providers will be alerted about the inconsistent data quality and warned about future barring of their utility. ITR 4 ( sugam ) Validation Rules for AY 2017 -18 V Page 4 Category A: Sl. No. Scenarios 1 Tax computation has been disclosed but Gross Total Income is nil.

4 2 "Income details" and "Tax computation" have not been disclosed but details regarding Taxes Paid have been disclosed. 3 Presumptive Income u/s 44AD is less than 6% of Gross Receipts through a/c payee cheque or a/c payee bank draft or bank electronic clearing system received. 4 Presumptive Income u/s 44AD is less than 8% of Gross Receipts through any other mode. 5 Presumptive Income u/s 44 ADA is less than 50% of Gross Receipts. 6 Presumptive Income u/s 44AD is more than Gross Receipts through a/c payee cheque or a/c payee bank draft or bank electronic clearing system received. 7 Presumptive Income u/s 44AD is more than Gross Receipts through any other mode. 8 Presumptive Income u/s 44 ADA is more than Gross Receipts. 9 Gross Total Income is not equal to the Total of Incomes from Business & profession, Salary, House Property & Other Sources.

5 10 Non-Resident assessee has claimed Income u/s 44AD. 11 Non-Resident assessee has claimed Income u/s 44 ADA. 12 TDS or TCS or Tax paid claimed in Part D - Tax Computation and Tax Status is inconsistent with the details provided in Schedule IT, Schedule TDS1, Schedule TDS2 and Schedule TCS. 13 When "House Property" is "Self occupied", loss from HP is more than 2 lakhs. 14 The assessee is governed by Portuguese Code but "PAN of Spouse" is not provided. 15 Donee PAN is same as "Assesse PAN" or "PAN at Verification" 16 "Name" as per ITR does not match with the "Name" as per the PAN data base. ITR 4 ( sugam ) Validation Rules for AY 2017 -18 V Page 5 17 The sum of amounts disclosed at TDS, TCS, Advance Tax and Self-Assessment Tax is not equal to the amount disclosed at Total Taxes Paid.

6 18 Non-compliances with respect to section 44AE; i) Period of holding per vehicle is more than 12 months OR ii) Total period of holding is more than 120 months. 19 Presumptive Income from one Goods Carriage is less than Rs. 7500/-. 20 Total Income is greater than Lakhs but Schedule AL is not filled. 21 In Schedule TDS2, The Amount of TDS claimed this year is more than Tax deducted . 22 In Schedule TCS, The Amount of TCS claimed this year is more than Tax collected . 23 Deductions claimed under Chapter VI-A are greater than Gross Total Income 24 Refund claimed is not matching with the difference of Total Taxes Paid and Total Tax and Interest payable . 25 Tax payable Amount is not matching with the difference of Total Tax and Interest payable and Total Taxes Paid.

7 26 "Income details" are not provided but "Tax computation" has been provided. 27 IFSC under "Bank Details" is not matching with the RBI database. 28 Total Gross turnover or gross receipts u/s 44AD is greater than 2 crore 29 Total Gross turnover or gross receipts u/s 44 ADA is greater than 50 lakh. ITR 4 ( sugam ) Validation Rules for AY 2017 -18 V Page 6 30 In Schedule TDS2, Amount which is subject to Tax Deduction should not be less than twice the amount of Tax Deducted . 31 In Schedule TCS, Amount which is subject to Tax Collection should not be less than twice the amount of Tax Collected . 32 Not offering any Presumptive Business or Profession Income. Category C: Sl. No. Scenarios 1 Total Presumptive Income u/s 44AE is disclosed but details are not provided in Schedule 44AE.

8 2 Deduction u/s 80G is claimed but details are not provided in Schedule 80G. 3 If the amount of salary disclosed in "Income details" is less than 90% of Salary reported in Schedule TDS1.