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How to File Form ITR-4?

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Laxmi Navlani

File ITR-4
Income Tax
Income Tax Filing

ITR stands for Income Tax Return and ITR-4 Form is for the taxpayers who opted for presumptive income scheme u/s 44AD, 44ADA or 44AE of the Income Tax Act, 1961. However, If the turnover of the business/profession becomes more than INR 2 crores/50 lacs respectively then the taxpayer can’t file ITR-4.

Who can File Form ITR-4?

ITR-4 is to be filed by individuals, HUFs and Partnership Firms who meet the following conditions –

  1. Business income is as per the special provisions under Sections 44AD and 44AE.
  2. The assessee has computed Income from Professional sources as per section 44ADA
  3. Income from one house property up to INR 50 Lakh (excluding brought forward loss or loss to be carried forward under this head)
  4. Salary/ Pension Income up to INR 50 Lakh
  5. Income up to INR 50 Lakh from other sources (excluding winning from lottery and income from horse race)

Note: Freelancers can also opt for this scheme if gross receipts are not exceeding INR 50 Lakh.

The following individuals cannot file ITR-4:

  1. Director of a company
  2. Assessee having unlisted equity shares
  3. Assessee having assets/financial interest in an entity outside India
  4. Individual being signing authority in any account outside India
  5. Assessee having foreign income
  6. Assessee having income 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.
  7. Individual having joint ownership in house property (inserted in AY 20-21)
  8. There is loss under “income from other sources”
  9. Assessee having Capital Gains or income from more than one house property.
  10. Income under the head “other sources” includes income from winning the lottery, horse races, income taxable at special rates u/s 115BBDA or 115BBE.
  11. Assessee is having agricultural income exceeding INR 5,000.
  12. There is brought forward loss or loss which is to be carried forward under any income head.
  13. There is a claim of relief under Sections 90, 90A or 91
  14. Assessee wants any deduction claim under Section 57 (except deduction relating to family pension)
  15. Assessee wants to claim tax credit which has been deducted at source in the hands of another person.

Structure of ITR-4

Part/ Schedule Heading Fields
PART A- GENERAL Personal Information Name, Address, Date of Birth, PAN, contact details.
Filing Status Employer Category, Tax status, Residential status, Return filed under the section.
PART B Gross total income Income under all the five heads of income Deductions under Chapter VI-A.
PART C Deductions Deductions claimed under Chapter VI-A.
PART D Tax Computation and Tax Status It gives the details of total tax payable, fees, and interest 
Schedule BP Computation of income from business or profession Income chargeable under the head ‘Profits and gains of business or profession u/s 44AD, 44ADA or 44AE is disclosed in this schedule.
Schedule TDS TDS-1: Details of Tax Deducted at Source from SALARY TAN of Employer, Employer Name, Tax Deducted, etc.
TDS-2 (i): Details of Tax Deducted at sources from Income other than Salary (As per FORM 16A

TDS-2 (ii): Details of Tax Deducted at sources from Income other than Salary (As per FORM 16C/ FORM 16D) 
TAN, Name of Deductor, Year of Deduction, Tax deducted, etc.
Schedule TCS Details of tax collected at source TAN of the collector, Name of Collector, Tax Collected, etc.
Schedule IT Details of Advance Tax and Self Assessment Tax Payments BSR code, Date of Deposit, Challan number, Tax Paid
Schedule D21 and Verification Bank details and Verification Details of bank account such as account number, IFSC code, etc and the verification of assessee
Schedule 80D Details of deduction claimed u/s 80D Details of health insurances, medical expenditures, preventive health checkups for parents and family. 
80G Details of Donations Name of Donee, Address, City or District, State Code, PAN of Donee, Amount.

How to file ITR-4?

There are two options to file ITR-4 :

1- Paper Form : It can be filed in a physical form or by furnishing bar coded return. Paper Form ITR is allowed in only in case of super senior citizen.

2- Electronically: A taxpayer can file ITR-4 online from the e-filing portal of the income tax department. The ITR-4 can be filed Online/Electronically:

ITR for Businesses u/s 44AD (Presumptive Scheme)
CA Assisted Income Tax Return filing plan for Individuals & HUFs with business income covered under Presumptive Taxation Scheme.
[Rated 4.8 stars by customers like you]
ITR for Businesses u/s 44AD (Presumptive Scheme)
CA Assisted Income Tax Return filing plan for Individuals & HUFs with business income covered under Presumptive Taxation Scheme.
[Rated 4.8 stars by customers like you]

FAQs

Can I file ITR-4 if audit u/s 44AB is applicable to me?

ITR-4 is a simplified form that cannot be filed by the individuals to whom audit is applicable.

What is the due date for filing income tax return ITR-4?

Due date for filing ITR-4 is 31st July.

 Is it compulsory to file the ITR-4 form for 5 consecutive years once filed in a particular year?

If a taxpayer is opting for a Presumptive scheme as per section 44AD then he/she shall have to file ITR-4 for 5 consecutive years.

Can I file ITR-4 if I have capital gains?

No, ITR-4 cannot be filed if you have capital gains.

Got Questions? Ask Away!

  1. Hi @Sankar123,

    Following are the benefits of filing under 44ADA:

    1. Taxpayer does not need to maintain books of accounts as per section 44AA,
    2. Taxpayer does not need to pay advance tax each quarter and can pay it in last installment i.e, by 15th march of the financial year,
    3. Tax audit will not be applicable if professional income is shown under 44ADA,
    4. Taxpayers can file ITR-4 which is simpler than ITR-3.

    However, as per section 44ADA, a taxpayer needs to show a minimum 50% of gross receipt or a higher amount claimed to have been earned as income while opting for 44ADA.

    Hope this helps :slightly_smiling_face:

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