Form 4 Income Tax Rules 2026 pdf download and Key points
Form 4 Income Tax Rules 2026 pdf download and Key points
FORM NO. 4
[See rule 12]
Income attributable to assets located in India under section 9(10)(a)
Under the Income-tax Rules, 2026, Form No. 4 replaces the erstwhile Form 3CT. It is governed by Section 9(10) of the Income-tax Act, 2025 (replacing the old Section 9(1)), and Rule 11 of the Income-tax Rules, 2026.
Here are all the key points regarding Form No. 4:
1. Purpose of the Form Form 4 is a mandatory report furnished by an Accountant regarding the calculation of income attributable to the transfer of assets located in India.
2. Applicability (Who Should File)
- Who Files: It must be filed by an Accountant whom the taxpayer has specifically appointed for this purpose.
- Target Taxpayer: It applies to taxpayers who have earned income attributable to the transfer of assets located in India.
- Is it Mandatory? Yes, filing Form 4 is strictly mandatory if the income generated from the transfer is chargeable to tax in India.
3. Frequency and Due Dates
- Frequency: The form must be filed once in a tax year.
- Due Date: It must be filed along with the Return of Income, meaning the statutory due date for filing the income tax return applies to this form as well, depending on the specific taxpayer’s profile.
4. Structure of the Form The form captures comprehensive details and is divided into distinct sections:
- Part A (Particulars of the Person): A standard template capturing basic details of the taxpayer, including Name, Address, PAN, Email ID, and Contact Number.
- Part B (Other Information): Captures the core financial data, including the company/entity-wise breakup of the consideration received for the transfer of shares/interest, the income derived from such transfer, the value of the assets located in India, the value of global assets, and the specific method employed to arrive at the asset valuation.
5. Mandatory Documents Required To successfully file Form 4, the following documents must be gathered and attached:
- Communication addresses, emails, and phone numbers of the taxpayer.
- A formal Valuation Report detailing the valuation of the assets.
- Financial statements of the taxpayer.
- Legal and financial documents related to the sale/transfer of the asset(s).
6. Consequences of Non-Compliance If a taxpayer fails to file Form 4, it can lead to formal proceedings for the assessment of income against them under the provisions of the Income-tax Act, 2025.
7. Key Updates in the 2026 Rules
- Tabular Structure: The old form (Form 3CT) utilized a confusing row-wise format with numerous sub-rows. The new Form 4 introduces sub-tables and a clear tabular structure to provide better clarity on the information being filed.
- Standardized Fields: It incorporates system-friendly anomalies fixes, such as separating Name, Designation, Address, and PAN into different boxes.
- Terminology: The term “previous year” or “assessment year” has been universally replaced with “tax year”. All sections and clauses have been strictly aligned with the new Income-tax Act, 2025.
1. What is Form 4?
Ans: Form 4 is report by Accountant regarding the calculation of income attributable to transfer of assets located in India under section 9(9) of the Income-tax Act, 2025. This form is prescribed under Rule 11 of Income-tax Rules, 2026.
2: Who should file Form 4?
Ans: Form 4 can be filed by Accountant which the taxpayer has appointed for this purpose. The taxpayer is one who has earned income attributable to transfer
of assets located in India.
3: Is Form 4 mandatory?
Ans: Form 4 is mandatory if the income is chargeable to tax in India.
4: What is the time limit for filing Form 4?
Ans: Form 4 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.
5: How many times can Form 4 be filed in a year?
Ans: Form 4 is be filed once in a tax year along with the Return of Income.
6: What documents are required to file Form 4?
Ans: Following documents may be required for filing Form 4:
o Communication addresses, emails, contact number
o Valuation report of the valuation of the assets
o Financial statements of the taxpayer
o Documents related to the sale of asset/s
7: Can I edit Form 4 after submission?
Ans: No. Once Form 4 is submitted and acknowledgment is generated, it cannot be edited. Ensure all details are correct before submission. Form 4 cannot be refiled without revised Return of Income.
8: Do I need to attach proof of tax payment?
Ans: The form does not require proof of tax payments. However, where taxable income arises, for processing the return of income filed in this respect, proof of
tax and interest payment (challans/BSR codes) is mandatory.
9: While filling personal details, can I leave Aadhaar or mobile number blank?
Ans: Aadhaar is no longer required in the personal details.
Mobile number ensures faster communication and verification; it is recommended to provide it.
10: What if I do not have a PAN?
Ans: Form 4 cannot be submitted without a valid PAN.
11: Can Form 4 be filed offline?
Ans: No. Form 4 can only be submitted online through the Income Tax e-Filing portal.
12. What is the process flow of filing Form 4?
Ans: The process flow for filing Form 4 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.
13: Why is Form 4 important?
Ans: Filing Form 4 enables Assessing Officer to understand the computation of income on transfer of assets and would thus enable easier processing and
scrutiny of the Return of Income. Failure to file Form 4 can lead to proceedings for assessment of income under the Income-tax Act, 2025.
Form 4 Income Tax Rules 2026 pdf download
Form No.4– Frequently Asked Questions
Guidance Note on Form 4
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