FORM 4 - Income attributable to assets located in India under section 9(10)(a) of the Act

A. PURPOSE

The Form is report by Accountant regarding the calculation of income attributable to transfer of assets located in India under section 9(10) of the Income-tax Act, 2025. This form is prescribed under Rule 11 of Income-tax Rules, 2026.

B. WHO SHOULD FILE

Accountant, which the taxpayer has appointed for this purpose

C. FREQUENCY & DUE DATES

o Form 4 must be filed once in a tax year

o The Form must be filed along with the Return of Income and the due date for filing of return of income applies to this Form too depending on the taxpayer profile.

D. STRUCTURE OF FORM 4

1) Details such as communication address, email, phone number etc. which is as per the standard template provided for all forms.

2) Details regarding the transaction of transfer of share of interest entity-wise, income derived from such transfer, value of assets located in India, value of global assets, method employed for arriving at the value of the assets.

E. WHAT ARE THE DOCUMENTS REQUIRED TO FILE THE FORM 4?

Following documents may be required for filing Form 4:

o Communication addresses, emails, phone numbers of the taxpayer.

o Valuation report of the valuation of the assets

o Financial statements of the taxpayer

o Documents related to the sale of asset/s

F. FILING COUNT

For the F.Y. 2024-25, 56 forms have been filed.

G. WHAT IS THE PROCESS FLOW OF FILING FORM 4?

The process flow includes following steps

1. Firm/Accountant has to register on the UDIN portal to generate UDIN as per the process of the ICAI.

2. The Form is to be filed electronically through the e-filing portal of the Income Tax Department by the accountant after generation of Unique Document Identification Number.

3. The statement should be digitally signed by the Accountant.

H. OUTCOME OF PROCESSED FORM 4

The form is required for cross-verification with regard to the income offered in the return of income

Consequences of Non-compliance:

Failure to file Form 4 can lead to proceedings for assessment of income under the Income-tax Act, 2025.

I. BRIEF NOTE ON BROAD OR QUALITATIVE CHANGES PROPOSED

Key updates include the following

1. Part-A, the standard template to capture the details of the tax payer

2. Sub-tables introduced to present clear picture of the information to be filed.

J. CHALLENGES AND SOLUTIONS

o Since the existing notified form is in Row-wise format with numerous sub rows, to provide clarity on information and all the information that are to gather to fill the form, tabular structure has been introduced.

K. COMMON CHANGES MADE ACROSS FORMS

1. To make Forms system-friendly and enable e-filing and uploading, certain anomalies found due to grouping of Name, Designation, Address, PAN and Aadhaar number have been separated into different boxes.

2. Assessment / Financial / Previous year or years have been replaced with Tax year or years, wherever appearing in the Form/Annexure.

3. Sections, Clauses and Schedules changed as per the Income-tax Act, 2025.

4. Common verification statement.

5. Common details for all forms filed by accountants such as firm registration details, UDIN