- Bank Statement
What is ITR-4 Filing?
Form ITR 4 is filed by the taxpayers who have opted for the Presumptive Taxation Scheme under Section 44D, 44DA, 44AE of the Income Tax Act,1961. But this is subject to the business turnover limit i.e in case if the turnover is exceeding Rs.2 crore then the taxpayer is required to file ITR 3 Form.
Who is Eligible to file Form ITR 4?
Individuals whose income comes from the following sources have to file ITR 4 Form:
- Business Income under Section 44AD/Section 44AE.
- Income from a profession as per Section 44ADA.
- Income up to Rs. 50 lakh from Salary or Pension.
- Income up to Rs. 50 lakh from One house property (that does not include the brought forward loss o loss that is to be brought forward under this head)
- Income from other sources up to Rs.50 lakh (does not include winning from lottery or horse races)
- Form ITR 4 can also be filed by the freelancers if the income is not exceeding Rs.50 lakh.
Who is not Eligible to file Form ITR 4?
The following individuals need to file ITR-4:
- Holds Directorship in a company
- Holds any unlisted equity shares at any time during the previous year
- Has assets/financial interest in an entity outside India
- Has signing authority in any account outside India
- Has income from a source located outside India
- Has profits from a business or profession which is not required to be computed under sections 44AD, 44ADA, or 44AE, like income from a speculative business, commission, brokerage, etc.
- Makes Capital Gains
- Has income from more than one house property
- Has income under the head "other sources" from winning the lottery, horse races, income taxable at special rates u/s 115BBDA or 115BBE
- Has income which is to be apportioned under the provisions of Section 5A
- Has agricultural income exceeding INR 5,000
- Has any brought forward loss or loss which is to be carried forward under any income head
- Has loss under “income from other sources”
- Has a claim of relief under Sections 90, 90A or 91
- Has any deduction claim under Section 57 (except deduction relating to family pension)
- Has claim of tax credit which has been deducted at source in the hands of another person
- Has joint ownership in house property (inserted in AY 20-21).
How to file Form ITR 4?
ITR-4 can be submitted both online and offline as well.
Offline
The following individuals can file offline form:
- 1. Individuals at the age of 80 years or more
- 2. The individual's income is less than Rs.5 Lakh and he does not have to claim a refund in the income tax return
ITR 4 can be filed offline :
- By furnishing a return in a physical paper form
- By furnishing a bar-coded return (An acknowledgment will be issued at the time of submission of the physical paper return)
Online/Electronically
- 1. By furnishing the return digitally using the digital signature.
- 2. By transmitting the data electronically and then submitting the verification of the return made in Form ITR-V.
If the ITR-4 Form is under digital signature then an acknowledgment will be sent to the registered
email id.
Components of ITR 4 Form.
The structure of Form ITR-4 is as follows
- Part A:General Information
- Part B:Gross total income under the five heads of income
- Part C:Deductions and Total Taxable Income
- Schedule BP: Details of Income from Business
- Schedule 80G: Details of Donations entitled for deduction under Section 80G
- Schedule IT: Statement of payment of advance tax and tax on self-assessment
- Schedule- TCS:Statement about Tax Collected at source
- Schedule TDS1: Statement of Tax Deducted at Source on Salary
- Schedule TDS2: Statement of tax deducted at source on income apart from salary
- Verification Scheme
Document Required for ITR-4 Return Filing
- PAN Card
- Aadhar Card
