ITR 4 presumptive taxation investment

[Shan S]

does the personal land and building investment and inherited property from parents also needed to be included in ITR 4 for presumptive taxation.

and also bank balance savings accounts also for 44ADA professionals or only current account balance as on 31/3/2026 to be reported

[YAGAY and SUN]

For a taxpayer filing ITR-4 under Section 44ADA, the reporting requirements are limited compared to regular books-of-account cases, but certain asset disclosures may still apply.

1. Personal land/building and inherited property

If you are filing ITR-4 for AY 2026-27 and your total income exceeds the threshold requiring disclosure of assets and liabilities in the ITR, then all assets owned by you as on 31 March 2026 should generally be considered for reporting, including:

• Self-acquired land and building (personal investments).

• Property inherited from parents and owned by you as on the reporting date.

• Other specified assets such as bank balances, shares, vehicles, jewellery, etc., where disclosure is applicable.

The fact that the property was inherited does not exempt it from asset disclosure if the schedule is applicable.

2. Bank balances - savings account vs current account

Where asset disclosure is required, bank balances as on 31 March 2026 are generally reported irrespective of whether the account is:

• Savings account,

• Current account,

• Fixed deposit,

• Other bank deposits.

Therefore, it is not restricted to the professional current account. Personal savings account balances are also relevant for asset disclosure.

3. Important distinction

Under Section 44ADA, you are not required to maintain detailed books merely because you opt for presumptive taxation. However, asset disclosure in the ITR is a separate requirement from maintaining books. If the relevant asset-liability disclosure schedule is triggered based on the return requirements for the year, personal assets and all bank balances owned by the assessee need to be considered.

AI Summary

Presumptive taxation disclosure under ITR-4 includes all owned assets and bank balances when the reporting schedule applies.
Under presumptive taxation in ITR-4 for a professional covered by Section 44ADA, asset and liability disclosure, where applicable, is separate from the relaxed books-of-account regime. If the disclosure schedule is triggered, all assets owned as on 31 March 2026, including self-acquired land and building, inherited property, and specified assets such as shares, vehicles, jewellery, and bank balances, should be considered. Bank balance reporting is not limited to a current account; savings accounts, current accounts, fixed deposits, and other bank deposits are also relevant.