QUESTION: In the Form ITR-4 for assessment year 2010-11 prescribed for individuals and HUFs having profession or business, instruction in para 18(b) would require surcharge at 10 per cent on income exceeding Rs. 10 lakh overlooking the fact that surcharge is not applicable for assessment year 2010-11.
ANSWER: There is a mistake in the instruction as pointed out by the reader. Fortunately Part B-TTI in the Schedule to the Form giving the working of tax does not have the column for surcharge so that the mistake is only in the instruction and not in the Form.
Such instructions, which are followed by many taxpayers who do not have professional assistance, should have been more carefully drafted.