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

Taxpayers with business or professional income who are filing ITR -3 or ITR-4 by 31 August should carefully fill in the schedules in their returns and reconcile key details with their financial records.

Siddharth Maurya, Managing Director, Vibhavangal Anukulkara, explained the key schedules taxpayers should review and the checks they should complete.

“The schedules most typically filled by ITR-3 filers comprise Part A- Profit and Loss Account, Part A-Balance Sheet, Schedule BP, Schedule CG, Schedule OS and, where there are losses, Schedules CYLA, BFLA and CFL,” Maurya explained.

Maurya noted that “ITR-4 is a simpler form. The most used sections are Salary or Pension, House Property, Other Sources, Chapter VI-A Deductions and the Payment Schedules”.

For regular business or professional income in Form ITR-3, Maurya said taxpayers should first prepare the Profit and Loss Account and Balance Sheet, followed by Schedule BP.

“The turnover should be the same as the sales as reported in the sales register, GST return, bank and payment-gateway receipts, AIS and TDS certificates,” he noted.

Personal and capital expenses, unpaid statutory dues and other inadmissible expenses need to be added back. Intraday and F&O turnover and income should be reported separately in ITR-3.

“For presumptive taxation in ITR-4 form, Section 44AD generally considers 6% of eligible digital receipts and 8% of other eligible receipts, or the actual income if higher. Under Section 44ADA, at least 50% of gross professional receipts is treated as income. Section 44AE requires vehicle-wise calculations. Routine expenses must not be deducted again from presumptive income,” he noted.

Maurya explained that “filers of ITR-3 and ITR-4 must have Form 26AS, AIS, TIS, Form 16 and 16A, bank passbooks and advance/self-assessment tax challans”. He highlighted the following checks:

Maurya noted that “AY 2026-27 relates to income earned during FY 2025-26. More specifically, the Income Tax Act, 1961 applies”.

He added that key changes include allowing taxpayers to report income from up to two houses in ITR-4, along with a new field for reporting rent that was not collected.

“Both forms have fields for secondary addresses and contact details. ITR-3 now separately captures F&O turnover and trading income and includes a schedule for interest and remuneration from firms/partnerships. Schedule VDA requires separate reporting of acquisition and transfer dates,” he mentioned.

Disclaimer: This is only for informational and educational purposes. Please consult a qualified expert for the latest laws and regulations.

Sheetal Goel is a Content Producer at Livemint, where she covers corporate developments, personal finance, business trends, markets, and SEBI-related updates. She focuses on simplifying complex financial concepts and presenting them in a clear, reader-friendly manner, thereby helping audiences better understand investment trends, personal finance, and market developments. Her writing focuses on making finance more accessible to everyday readers while maintaining clarity, accuracy, and relevance.