Updated Codes: Nature of Business and Profession

Introduction

The Central Board of Direct Taxes (CBDT) has changed the business and profession codes for the Income Tax Return (ITR) from Assessment Year 2019-2020. Hence, you must select the correct codes for the nature of the business or nature of the profession to report the correct information in the ITR. The nature of business code should be selected while filing ITR-3 and ITR-4 on the Income Tax Website.

  • ITR-3 – Taxpayer having income from business/profession who do not opt for the Presumptive Taxation Scheme should prepare financial statements and file ITR-3. The taxpayer should select the correct codes and category under which the business or profession can be classified from the drop-down list. Description of business/profession activity and Trade Name of the business/profession can also be added.
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  • ITR-4 – Taxpayer having income from business or profession and opting for Presumptive Taxation Scheme u/s 44AD or 44ADA is not required to maintain books of accounts and should file ITR-4. However, the taxpayer should select the correct codes and category under which the business or profession can be classified from the drop-down list. Description of business/profession activity and Trade Name of the business/profession can also be added.
Have income from Professional services?
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List of Business and Profession Codes

I. Profession Codes

Select the code from the list below in case of Income from Profession under ITR-3 or for opting Presumptive Taxation Scheme under Sec 44ADA under ITR-4:

Sub-Sector Code
Advertising  16006
Auctioneers  16010
Business brokerage 16011
Market research and public opinion polling  16012
Labour recruitment and provision of personnel  16014
Investigation and security services  16015
Building-cleaning and industrial cleaning activities  16016
Packaging activities  16017
Other professional services n.e.c. 16019

II. Business Codes

Code Sub-Sector
14001 Software development
14002 Other Software consultancy 
14003 Data processing
14004 Database activities and distribution of electronic content
14005 Other IT enabled services
14006 BPO Service
14008 Maintenance and repair of office, accounting, and computing machinery
16001 Legal Profession
16002 Accounting, Auditing, and book-keeping profession
16003 Tax Consultancy 
16004 Architectural Profession
16005 Engineering and technical consultancy 
16007 Fashion design
16008 Interior decoration
16009 Photography
16013 Business and Management Consultancy activities 
16018 Secretarial activities
16019_1 Medical profession
16020 Film artist
General hospitals 18001
Specialty and super-specialty hospitals 18002
Nursing homes 18003
Diagnostic centers 18004
Pathological laboratories  18005
Medical clinics  18010
Dental practice  18011
Ayurveda practice  18012
Unani practice  18013
Homeopathy practice  18014
Nurses, physiotherapists or other para-medical practitioners 18015
Veterinary hospitals and practice 18016
Other healthcare services  18017
Medical research  18018
Practice of other alternative medicine 18019
Individual artists excluding authors 18020
Individual artists excluding authors 20010
Literary activities 20011
Other cultural activities n.e.c. 20012

Agricultural, Animal, Husbandry & Forestry

Sub-Sector Code
Growing and manufacturing of tea 01001
Growing and manufacturing of coffee 01002
Growing and manufacturing of rubber 01003
Market gardening and horticulture specialties 01004
Raising of silkworms and production of silk 01005
Raising of bees and production of honey 01006
Raising of poultry and production of eggs 01007
Rearing of sheep and production of wool 01008
Rearing of animals and production of animal products 01009
Agricultural and animal husbandry services 01010
Soil conservation, soil testing, and soil desalination services 01011
Hunting, trapping and game propagation services 01012
Growing   of   timber,   plantation,   operation   of   tree   nurseries   and
conserving of forest
01013
Gathering of tendu leaves 01014
Gathering of other wild-growing materials 01015
Forestry   service   activities,   timber   cruising,   afforestation   and
reforestation
01016
Logging service activities, transport of logs within the forest 01017
Other agriculture, animal husbandry or forestry activity n.e.c 01018

Fish Farming

 Sub-Sector Code 
Fishing on a commercial basis in inland waters 02001
Fishing on commercial basis in ocean and coastal areas 02002
Fish farming 02003
Gathering of marine materials such as natural pearls, sponges, coral
etc.
02004
Services related to marine and fresh water fisheries, fish hatcheries
and fish farms
02005
Other Fish farming activity n.e.c 02006

Mining and Quarrying

Sub-Sector  Code 
Mining and agglomeration of hard coal 03001
Mining and agglomeration of lignite 03002
Extraction and agglomeration of peat 03003
Extraction of crude petroleum and natural gas 03004
Service  activities  incidental  to  oil  and  gas  extraction  excluding
surveying
03005
Mining of uranium and thorium ores 03006
Mining of iron ores 03007
Mining of non-ferrous metal ores, except uranium and thorium ores 03008
Mining of gemstones 03009
Mining of chemical and fertilizer minerals 03010
Mining of quarrying of abrasive materials 03011
Mining of mica, graphite and asbestos 03012
Quarrying of stones (marble/granite/dolomite), sand and clay 03013
Other mining and quarrying 03014
Mining and production of salt 03015
Other mining and quarrying n.e.c 03016

Manufacturing

Sub-Sector  Code 
Production, processing and preservation of meat and meat products 04001
Production, processing and preservation of fish and fish products 04002
Manufacture of vegetable oil, animal oil and fats 04003
Processing of fruits, vegetables and edible nuts 04004
Manufacture of dairy products 04005
Manufacture of sugar 04006
Manufacture of cocoa, chocolates and sugar confectionery 04007
Flour milling 04008
Rice milling 04009
Dal milling 04010
Manufacture of other grain mill products 04011
Manufacture of bakery products 04012
Manufacture of starch products 04013
Manufacture of animal feeds 04014
Manufacture of other food products 04015
Manufacturing of wines 04016
Manufacture of beer 04017
Manufacture of malt liquors 04018
Distilling and blending of spirits, production of ethyl alcohol 04019
Manufacture of mineral water 04020
Manufacture of soft drinks 04021
Manufacture of other non-alcoholic beverages 04022
Manufacture of tobacco products 04023
Manufacture of textiles (other than by handloom) 04024
Manufacture of textiles using handlooms (khadi) 04025
Manufacture  of  carpet,  rugs,  blankets,  shawls  etc.  (other  than  by
hand)
04026
Manufacture of carpet, rugs, blankets, shawls etc. by hand 04027
Manufacture of wearing apparel 04028
Tanning and dressing of leather 04029
Manufacture of luggage, handbags and the like saddler and harness 04030
Manufacture of footwear 04031
Manufacture  of  wood  and  wood  products,  cork,  straw and  plaiting
material
04032
Manufacture of paper and paper products 04033
Publishing, printing and reproduction of recorded media 04034
Manufacture of coke oven products 04035
Manufacture of refined petroleum products 04036
Processing of nuclear fuel 04037
Manufacture of fertilizers and nitrogen compounds 04038
Manufacture of plastics in primary forms and of synthetic rubber 04039
Manufacture of paints, varnishes and similar coatings 04040
Manufacture of pharmaceuticals, medicinal chemicals and botanical
products
04041
Manufacture of soap and detergents 04042
Manufacture of other chemical products 04043
Manufacture of man-made fibers 04044
Manufacture of rubber products 04045
Manufacture of plastic products 04046
Manufacture of glass and glass products 04047
Manufacture of cement, lime and plaster 04048
Manufacture of articles of concrete, cement and plaster 04049
Manufacture of Bricks 04050
Manufacture of other clay and ceramic products 04051
Manufacture of other non-metallic mineral products 04052
Manufacture of pig iron, sponge iron, Direct Reduced Iron etc. 04053
Manufacture of Ferro alloys 04054
Manufacture of Ingots, billets, blooms and slabs etc. 04055
Manufacture of steel products 04056
Manufacture of basic precious and non-ferrous metals 04057
Manufacture of non-metallic mineral products 04058
Casting of metals 04059
Manufacture of fabricated metal products 04060
Manufacture of engines and turbines 04061
Manufacture of pumps and compressors 04062
Manufacture of bearings and gears 04063
Manufacture of ovens and furnaces 04064
Manufacture of lifting and handling equipment 04065
Manufacture of other general purpose machinery 04066
Manufacture of agricultural and forestry machinery 04067
Manufacture of Machine Tools 04068
Manufacture of machinery for metallurgy 04069
Manufacture of machinery for mining, quarrying and constructions 04070
Manufacture of machinery for processing of food and  beverages 04071
Manufacture of machinery for leather and textile 04072
Manufacture of weapons and ammunition 04073
Manufacture of other special purpose machinery 04074
Manufacture of domestic appliances 04075
Manufacture of office, accounting and computing machinery 04076
Manufacture of electrical machinery and apparatus 04077
Manufacture  of  Radio,  Television,  communication  equipment  and apparatus 04078
Manufacture of medical and surgical equipment 04079
Manufacture of industrial process control equipment 04080
Manufacture  of  instruments  and  appliances  for  measurements  and
navigation
04081
Manufacture of optical instruments 04082
Manufacture of watches and clocks 04083
Manufacture of motor vehicles 04084
Manufacture of body of motor vehicles 04085
Manufacture of parts & accessories of motor vehicles &  engines 04086
Building & repair of ships and boats 04087
Manufacture of railway locomotive and rolling stocks 04088
Manufacture of aircraft and spacecraft 04089
Manufacture of bicycles 04090
Manufacture of other transport equipment 04091
Manufacture of furniture 04092
Manufacture of jewellery 04093
Manufacture of sports goods 04094
Manufacture of musical instruments 04095
Manufacture of games and toys 04096
Other manufacturing n.e.c. 04097
Recycling of metal waste and scrap 04098
Recycling of non- metal waste and scrap 04099

Electricity, Gas and Water

Sub-Sector  Code 
Production, collection and distribution of electricity 05001
Manufacture and distribution of gas 05002
Collection, purification and distribution of water 05003
Other essential commodity service  n.e.c 05004

Construction

Sub-Sector  Code 
Site preparation works 06001
Building of complete constructions or parts- civil contractors 06002
Building installation 06003
Building completion 06004
Construction and maintenance of roads, rails, bridges, tunnels, ports,
harbour, runways etc.
06005
Construction and maintenance of power plants 06006
Construction  and maintenance of industrial plants 06007
Construction  and maintenance of power transmission and
telecommunication lines
06008
Construction of water ways and water reservoirs 06009
Other construction activity n.e.c. 06010

Real Estate and Renting Services

Sub-Sector Code
Purchase, sale, and letting of leased buildings (residential and non-residential) 07001
Operating of real estate of self-owned buildings (residential and non-residential) 07002
Developing and subdividing real estate into lots 07003
Real estate activities on a fee or contract basis  07004
Other real estate/renting services n.e.c 07005

Renting of Machinery

Sub-Sector  Code 
Renting of land transport equipment 08001
Renting of water transport equipment 08002
Renting of air transport equipment 08003
Renting of agricultural machinery and equipment 08004
Renting of construction and civil engineering machinery 08005
Renting of office machinery and equipment 08006
Renting of other machinery and equipment n.e.c. 08007
Renting of personal and household goods n.e.c. 08008
Renting of other machinery n.e.c. 08009

Wholesale and Retail Trade

Sub-Sector  Code 
Wholesale and retail sale of motor vehicles 09001
Repair and maintenance of motor vehicles 09002
Sale of motor parts and accessories- wholesale and retail 09003
Retail sale of automotive fuel 09004
General commission agents, commodity brokers and auctioneers 09005
Wholesale of agricultural raw material 09006
Wholesale of food & beverages and tobacco 09007
Wholesale of household goods 09008
Wholesale of metals and metal ores 09009
Wholesale of household goods 09010
Wholesale of construction material 09011
Wholesale of hardware and sanitary fittings 09012
Wholesale of cotton and jute 09013
Wholesale of raw wool and raw silk 09014
Wholesale of other textile fibres 09015
Wholesale of industrial chemicals 09016
Wholesale of fertilizers and pesticides 09017
Wholesale of electronic parts & equipment 09018
Wholesale of other machinery, equipment and supplies 09019
Wholesale of waste, scrap & materials for re-cycling 09020
Retail sale of food, beverages and tobacco in specialized stores 09021
Retail sale of other goods in specialized stores 09022
Retail sale in non-specialized stores 09023
Retail sale of textiles, apparel, footwear, leather goods 09024
Retail sale of other household appliances 09025
Retail sale of hardware, paint and glass 09026
Wholesale of other products n.e.c 09027
Retail sale of other products n.e.c 09028

Hotels, Restaurants and Hospitality Services

Sub-Sector  Code
Hotels – star rated 10001
Hotels – non-star rated 10002
Motels, inns, and Dharmshalas 10003
Guesthouses and circuit houses 10004
Dormitories and hostels at educational institutions  10005
Short stay accommodations n.e.c 10006
Restaurants – without bars 10007
Canteens 10008
Independent caterers 10009
Casinos and other games of chance 10010
Other hospitality services n.e.c 10011

Transport & Logistics Services

 

Sub-Sector Code
Travel agencies and tour operators  11001
Packers and movers 11002
Passenger land transport  11003
Air transport 11004
Transport by urban/sub-urban railways 11005
Inland water transport 11006
Sea and coastal water transport 11007
Freight transport by road 11008
Freight transport by railways 11009
Forwarding of freight  11010
Receiving and acceptance of freight 11011
Cargo handling  11012
Storage and warehousing 11013
Transport via pipelines (transport of gases, liquids, slurry, and other commodities) 11014
Other transport and logistics services n.e.c 11015

Post and Telecommunication Services

Sub-Sector Code
Post and courier activities  12001
Basic telecom services 12002
Value added telecom services 12003
Maintenance of telecom network 12004
Activities of the cable operators 12005
Other post & telecommunication services n.e.c 12006

Financial Intermediation Services

Sub-Sector Code
Commercial, saving banks and discount houses 13001
Specialized institutions granting credit 13002
Financial leasing  13003
Hire-purchase financing  13004
Housing finance activities  13005
Commercial loan activities  13006
Credit cards 13007
Mutual funds 13008
Chit fund 13009
Investment activities 13010
Life insurance  13011
Pension funding  13012
Non-life insurance  13013
Administration of financial markets 13014
Stockbrokers, sub-brokers and related activities 13015
Financial advisers, Mortgage advisers, and brokers 13016
Foreign exchange services 13017
Other financial intermediation services n.e.c 13018

Sub-Sector Code
Cybercafe 14007
Computer training and educational institutes 14009
Other computation related services n.e.c 14010

Research and Development

Sub-Sector  Code 
Natural sciences and engineering 15001
Social sciences and humanities 15002
Other Research & Development activities n.e.c. 15003

Education Services

Sub-Sector  Code
Primary education 17001
Secondary/senior secondary education 17002
Technical and vocational secondary/senior secondary education  17003
Higher education  17004
Education by correspondence  17005
Coaching centers tuitions  17006
Other education services n.e.c 17007

Health Care and Services

Sub-Sector Code
Independent blood banks  18006
Medical transcription  18007
Independent ambulance services 18008
Medical suppliers, agencies and stores 18009

Social and Community Work

Sub-Sector  Code 
Social work activities with accommodation (orphanages and old age homes) 19001
Social work activities without accommodation (Creches) 19002
Industry associations, chambers of commerce 19003
Professional organisations 19004
Trade unions 19005
Religious organizations 19006
Political organisations 19007
Other membership organisations n.e.c. (rotary clubs, book clubs and 19008
philatelic clubs)  
Other Social or community service n.e.c 19009

Culture and Sport

Sub-Sector  Code 
Motion picture production 20001
Film distribution 20002
Film laboratories 20003
Television channel productions 20004
Television channels broadcast 20005
Video production and distribution 20006
Sound recording studios 20007
Radio – recording and distribution 20008
Stage production and related activities 20009
Circuses and race tracks 20013
Video Parlours 20014
News agency activities 20015
Library and archives activities 20016
Museum activities 20017
Preservation of historical sites and buildings 20018
Botanical and zoological gardens 20019
Operation and maintenance of sports facilities 20020
Activities of sports and game schools 20021
Organisation and operation of indoor/outdoor sports and promotion and production of sporting events 20022
Other sporting activities n.e.c. 20023
Other recreational activities n.e.c. 20024

Other Services

Sub-Sector Code
Hairdressing and other beauty treatment 21001
Funeral and related activities 21002
Marriage bureaus  21003
Pet care services 21004
Sauna and steam baths, massage salons, etc. 21005
Astrological and spiritualists’ activities  21006
Private households as employers of domestic staff 21007
Other services n.e.c 21008

Extra Territorial Organisations and Bodies

Sub-Sector  Code 
Extraterritorial organizations and   bodies   (IMF,   World   Bank, European Commission etc.) 22001

FAQs

What is the full form of “n.e.c”?

“n.e.c” stands for “not elsewhere classified.” Hence, the information given here is exclusive and not available elsewhere.

How to Choose the Correct Business or Profession Codes?

Follow these steps to select the correct business or profession codes:

-Select the codes by verifying the nature of the product or services involved to determine the sector of business or profession.
-Under each sector, the nature of the activity involved is to be seen for determining the sub-sector.
-In case you are undertaking multiple activities, different businesses, or professions, then you have to select various codes under the same trade name.
-In cases where there is more than one trade name for the under single PAN, then you have to mention multiple codes under different trade names.
-Each Sector has an others code n.e.c., in case your product or services or activity is not specifically listed in the main classification, then one can choose n.e.c.

What is Income Tax?

Income Tax is a tax on income collected by the government to fund infrastructure development, pay salaries, etc. Income Tax is a direct tax like capital gains tax and securities transaction tax etc. Tax Deducted at Source (TDS) is means through which the government generates steady revenues by levying taxes at sources such as salary or other payments. Additionally, Income Tax is to be paid by every Individual, HUF, AOP, BOI, Firms, and Companies.

Income Tax in India

In India, a direct tax is governed as per Income Tax Act, 1961 along with Income Tax Rules, 1962, Notifications and Circulars issued by Central Board of Direct Taxes. Moreover, Income Tax is levied based on the different types of incomes and taxpayers. Furthermore, there are different categories of taxpayers under the Income Tax Act.

  • Individual residents aged below 60 years
  • Senior citizen aged between 60 to 80 years
  • Super senior citizen aged above 80 years
  • Non-residents (NRI)
  • Hindu Undivided Family (HUF)
  • Firms / AOP / BOI / Local Authorities / Co-operative Societies
  • Company

Income Tax for Resident Individuals

An individual’s income is divided under different income heads such as salary, house property, capital gains, business or profession, and other sources. Income is taxed at slab rates except for a few special rate incomes.

  • The majority of individuals have income from salary, house property, and interest which makes them eligible to file ITR-1 (SAHAJ).
  • In the case of income from multiple house properties, ITR-2 can be filed.
  • Those with income from capital gains (say by way of casual stock trading or sale of the property) can file ITR-3.
  • Individuals having income from proprietary business or profession can file ITR-4 (SUGAM) or ITR-3.
  • Any Individuals who are partners in a firm and earn income by way of salary, remuneration, interest or profits sharing, can file ITR-3
  • Individuals whose turnover from proprietary Business exceed Rs. 2 crores have to get the books of account audited and file ITR-3.
  • Similarly, professionals’ gross professional receipts exceed Rs 50 Lakhs have to get the books of accounts audited and file ITR-3.
  • For a Resident Indian, global income will be taxable in India i.e income earned in India as well as outside India will be taxable in India. A tax credit will be available if such income is already taxed in a foreign country and India has a treaty with such a foreign country to avoid double taxation.
Residential Status Calculator
Residential Status Calculator for Income Tax. Taxability in India depends on residential status. Know your residential status from Resident, NRI, Resident but Not Ordinarily Resident(RNOR)
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Residential Status Calculator
Residential Status Calculator for Income Tax. Taxability in India depends on residential status. Know your residential status from Resident, NRI, Resident but Not Ordinarily Resident(RNOR)
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Income Tax for NRI

A Non-Resident Indian (NRI) has to file an income tax return in India only if he has earned any income in India. He does not have to disclose his foreign income from the country of residence while filing the tax return.

The type of return forms will be the same as applicable to resident India. While filing the return, NRI can claim the credit if the income earned in India is also taxed in the country of his residence. The basic principle here is that a single income should not be taxed twice. So if income earned in India is taxed in a foreign country as well, then NRI can claim the credit of the taxed paid in a foreign country while filing return in India. Credit will be allowed only if India has an agreement to avoid double taxation with a foreign country.

Income Tax for HUF (Hindu Undivided Family)

Income Tax Act recognizes Hindu Undivided Family (HUF) as a separate legal entity from its members. It has a unique PAN which if different from its Karta and members. HUF also enjoys a basic exemption limit of Rs. 2,50,000 just like the individuals.

  • HUFs have to file their Income Tax Return separately
  • Incomes earned out of assets in the common pool of HUF or any business activities run in the name of HUF are to be included in a tax return.
  • HUF can have income from all sources, except for salary.
  • Income will be taxed at slab rates applicable to individuals
  • HUF can file a return in ITR-2, ITR-3, and ITR-4
  • Just like individuals, if HUF is carrying business and turnover exceeds Rs. 2 crores then books of account have to be audited and ITR-4 is to be filed.

Income Tax for Partnership Firms

Partnership firm / LLP is a separate legal entity, independent from its partners. It has its own PAN.

  • Partnership firms / LLPs have to file an income tax return in ITR-5
  • Income from business or profession, house property, capital gains and other sources can be filed in ITR-5
  • The tax will be applied at a flat rate of 30% on a firm’s income.
  • The firm’s profits (after payment of tax) which are distributed amongst partners are tax-free in the hands of the partners.
  • However, any salary, remuneration or interest paid to partners will be taxable in the hands of the partner. And a firm can claim the same as an expense from its income.

Income Tax for Companies

Companies have a separate legal identity and a unique PAN. In India, there are Domestic Companies and Foreign Companies.

  • Companies have to file an income tax return in ITR-6
  • It is mandatory for companies to file an income tax return and provide details of the Statutory Audit in the return.
  • If turnover from business exceeds Rs. 2 crores, then companies have to carry of Tax Audit as per Income Tax Act and provide the details of the same in Income Tax Return.
  • Companies can have income from the business, house property, capital gains and other sources.
  • However, companies claiming an exemption under section 11 of the income tax act will be called trusts and they have to file return in ITR-7
  • The income of Domestic company is taxed at a flat rate of 30% whereas the income of Foreign company is taxed at a flat rate of 40%

FAQs

What is Income Tax Return (ITR)?

An income tax return is a form used to report income and file taxes with tax authorities such as the Income Tax Department (ITD) in India. Commonly known as ITR, tax return allows the taxpayer to calculate his/her tax liability and pay dues or request refunds. There are different prescribed ITR forms in India depending on one’s income situation.

How to calculate Income Tax?

Income Tax can be calculated by applying slab rates on taxable income, which is the addition of all the gross incomes such as salary, rent, business or profession, minus Chapter VI A deductions such as Provident Fund, Life Insurance Premium, ELSS, NSC, Medical Insurance Premium, etc.

Who can file Income Tax Return (ITR)?

It is mandatory to file the Income Tax Returns (ITR) online for all the registered taxpayers whose taxable income. However, paper returns can be filed by those who are above 80 years of age and do not have any income from regular business or profession.

AY 2021-22 ITR 4 for Presumptive Taxation Scheme

What is ITR 4 form?

The ITR 4 is meant for those taxpayers who have opted for the presumptive taxation scheme under Section 44AD, Section 44ADA, or Section 44AE of the Income Tax Act.

However, if the turnover of the mentioned business exceeds INR 2 crores (INR 50 lakh in the case of professionals), the taxpayer will have to file ITR 3. You can also download income tax utility from the income tax department website.

Download ITR 4 Form AY 2021-22
Download the latest AY 2021-22 ITR 4 Form for taxpayers opting for the presumptive taxation scheme
Download
Download ITR 4 Form AY 2021-22
Download the latest AY 2021-22 ITR 4 Form for taxpayers opting for the presumptive taxation scheme
Download

Up to FY 2018-19 (AY 2019-20), it was not mandatory to file Income Tax Return if the total income was less than the basic exemption limit. However, Budget 2019 inserted the seventh proviso to Section 139(1). As per this new provision, if a taxpayer has entered into high-value transactions, it is mandatory to file the ITR even if the total income does not exceed the basic exemption limit. The high-value transactions can be either of the following:

  1. If the taxpayer has deposited more than INR 1 Cr in a current account
  2. If the taxpayer has incurred foreign travel expense of more than INR 2 lacs
  3. Or, if the taxpayer has incurred electricity expense of more than INR 1 lac

Who can file ITR 4?

Individual/HUF/Partnership firm whose total income includes following can use this form:

File Your Tax Return

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Who can not file ITR 4 Form?

This Return Form cannot be used in case of the following incomes:

Earned Professional Income during the year?
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Structure of ITR Form Number 4

Part/ Schedule Heading Fields
PART A- GENERAL Personal Information Name, Address, Date of Birth, PAN, contact details, etc.
Filing Status Employer Category, Tax status, Residential status, Return filed u/s, etc.
PART B Income And Deduction Income from Business, Salary, Pension, House Property, Other Sources
PART C Deduction under Chapter VI-A Deductions under section 80C, 80D, 80E, 80G, 80TTA, etc.
PART D Tax computation Breaking up Tax computation, Interest, Cess, Rebate, etc.
Schedule NOB BP Nature of Business, If more than one business, indicates the three main activities/ products Nature of Business, Computation of Presumptive Income under 44AD, 44ADA and 44AE, Financial Particulars of Business
Schedule AL Details of Assets and Liabilities Details of an immovable asset, Details of a movable asset, Interest held in the asset of a firm or AOP, etc.
Schedule IT Details of Advance Tax and Self Assessment Tax Payments BSR Code, Date of Deposit, Chalan Number, Tax Paid
Schedule TCS Details of Tax Collected at sources Tax collection Account Number, Name of Collector, Tax Collected, Amount Claimed
Tax Details TDS1: Details of Tax Deducted at Source from SALARY TAN of Employer, Employer Name, Ted Deducted, etc.
Tax Details TDS2: Details of Tax Deducted at sources from Income other than Salary TAN, Name of Deductor, Year of Deduction, Tax deducted, etc.
Check which ITR Form to file?
Income Tax Return Forms to file depends on your Income Source, Residential Status, and other financial situation. Know which ITR Form you should file.
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Check which ITR Form to file?
Income Tax Return Forms to file depends on your Income Source, Residential Status, and other financial situation. Know which ITR Form you should file.
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List of Documents Needed to file ITR 4

Acquire the given list of documents on the basis of relevant Incomes in order to indulge in a smooth filing process.

Essential documents:

  • PAN (Permanent Account Number)
  • Bank account details
  • TDS certificates
  • Counterfoils of taxes paid
  • Details of original return if filing revised return
  • Details of notice if filing in response to the notice
  • Electricity bill (In case it exceeds INR 1 Lakh)
  • Travel expenses (In case it exceeds INR 2 Lakh)
  • Deposits in Bank (INR 1 Crore or above)

Documents on the basis of your type of Income:

  • Salary income
  • House/Property Income
    • Address of the property,
    • Co­-owner details in case the property is co­owned,
    • In case of house/property loan ­ Interest certificates/repayment certificate from bank,
    • In case of let out property – Rent agreement
  • Business / Profession
    • Profit & Loss statement
    • Balance Sheet
    • Supporting documents for expenses incurred
    • Bank account statement/Passbook
    • Cash register
    • Any other documents required to maintain the books of accounts of business & profession
  • Other sources
    • Savings/current account statements/Passbook
    • Interest certificates for deposits/bonds/NSC
    • PPF account statement/Passbook
    • Dividend warrants/counterfoils
    • Rent agreement in case of let out machinery
    • Details about receipts of any other incomes
  • If you’re eligible for any Tax Breaks, you may need to acquire the relevant documents from the list:
    • PPF account statement/Passbook
    • Fixed deposit certificates/statements
    • Mutual fund NAV statements
    • ELSS/ULIP/NSC investment details
    • Life insurance premium receipts
    • Medical insurance premium receipts
    • Preventive health checkup details
    • Pension fund/ National pension scheme statement
    • House/property loan interest certificate/repayment statement
    • Education loan interest certificate/repayment statement
    • Tuition fees receipts
    • Donation receipts
    • Certificate from specified medical authorities in case of disability
    • Receipts/proof of any other tax saving investment/contributions
Earned Business Income during the year?
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ITR 4 Form Breakdown

The ITR 4 has six sections that are required to be filled. These sections are as follows:

  • Personal Information
  • Gross Total Income
  • Disclosures
  • Total Deductions
  • Taxes Paid
  • Total Tax Liability

How to file the ITR 4?

You can either file your ITR 4 physically or electronically. Since the Financial year 2013-14, electronic filing of ITR 4 has been made compulsory for the taxpayers who:

  • Have an income of more than INR 5 Lakhs.
  • Have any assets outside of India, including financial interest in any entity; or signing authority in any account outside of India
  • Those claiming relief under Section 90/90A/91 to whom Schedule FSI and Schedule TR to apply

In case of Physical submission:

  • You can submit the ITR 4 in paper form or
  • You can submit the bar-coded return form duly filled.

The department will provide you with an acknowledgment along with stamp of submission on your copy.

File ITR 4 Online using Income Tax Website

  • Log in to the e-filing portal using your user ID & password.
  • Click on e-file > Income Tax Returns > File Income Tax Return from the dashboard
  • Select the appropriate assessment year
  • Select the online mode of filing the ITR
  • Select the applicable status and click on proceed
  • Select the ITR 4 option from the list provided
  • Read the instructions and click on the option to proceed
  • Select the options that are applicable to your particular situation and click on proceed
  • Review the prefilled data and click on proceed
  • Enter your income and deduction details in the different section
  • You will be shown a summary of your tax computation based on the details you provided. If there is tax liability payable based on the computation, you will receive the option to pay instantly or pay later
  • After paying tax, click Preview Return. If there is no tax liability payable, or if there is a refund based on tax computation, you will be taken to the Preview and Submit Your Return page
  •  Once validated, on your Preview and Submit your Return page, click Proceed to Verification
  •  On the Complete your Verification page, select your preferred option and click Continue

ITR 4 for AY 2021-22

Major Changes in ITR 2 for AY 2021-22

  • Taxpayers are given the option to choose between the old tax regime and the new tax regime
  • Dividend Income has to be added with a quarterly breakdown for accurate calculation of Interest under Section 234C
31st July
The due date to file ITR-4 (SUGAM) for Proprietors and Freelancers earning Business & Profession Income.
31st July
The due date to file ITR-4 (SUGAM) for Proprietors and Freelancers earning Business & Profession Income.

FAQs

Can NRI file ITR 4?

No. NRI can not file ITR 4. They need to file ITR 3 for income earned from Business & Profession.

My turnover from business is more than INR 2 Crore can I file ITR 4?

No, since presumptive taxation scheme is only available to businesses having turnover up to INR 2 Crore. You can not opt for the Presumptive Taxation Scheme and file ITR 4.

Can I file ITR 4 if my professional receipts are more than INR 50 lakhs?

No. since presumptive taxation scheme is only available to professionals having receipts up to INR 50 lakhs. You can not opt for the Presumptive Taxation Scheme and file ITR 4.

Can I file ITR 4 after the due date?

Yes, ITR 4 can be filed after the due date. It will be considered a belated return. And late filing fees will be levied while filing a belated return.

Income Tax Return (ITR) Form for AY 2016-17 (FY 2015-16)

Every taxpayer is required to declare incomes earned and taxes paid, to the Income Tax Department in prescribed income tax return forms called ITR Forms. Different ITR Forms are prescribed for AY 2016-17 based on different types of incomes and taxpayers. So every taxpayer has to first determine which ITR should be filed before he can start filing.

Check which ITR Form to file?
Income Tax Return Forms to file depends on your Income Source, Residential Status, and other financial situation. Know which ITR Form you should file.
Explore
Check which ITR Form to file?
Income Tax Return Forms to file depends on your Income Source, Residential Status, and other financial situation. Know which ITR Form you should file.
Explore

What are the different ITR Forms?

Although the Income Tax Department has prescribed 9 different ITR forms for AY 2016-17, taxpayers have to choose the one which is applicable to them.

Following ITR Forms are prescribed for Individuals (Non corporate assessees):

ITR-1 (SAHAJ) The most basic ITR form for individuals having income from salary/pension, one house property and interest
ITR-2A For individuals/HUF having income from salary/pension, multiple house property and interest
ITR-2 For individuals/HUF having income from salary/pension, multiple house property, capital gains and interest
ITR-3 Form individuals/HUF who are partner in a firm and not carrying any business or profession under proprietorship
ITR-4S (SUGAM) For individuals/HUF/Partnership firms having income from presumptive business or profession
ITR-4 For individuals/HUF having income from proprietary business or profession

Following ITR Forms are prescribed for corporate assessees:

ITR-5 For firms, association of persons (AOP), Body of Individuals (BOI), co-operative societies and local authorities
ITR-6 For companies other than companies claiming exemption under section 11 (such as charitable or religious trust)
ITR-7 For trusts, political parties, scientific research organisations, colleges and universities

Know Your ITR

Sources of Income Individual Individual/ HUF
ITR-1 (SAHAJ) ITR-2A ITR-2 ITR-3 ITR-4S ITR-4
Income From Salary/Pension
Self-Occupied House Property Income
Income from multiple House Property    
Agricultural Income exceeding Rs. 5,000/-    
Income from Other Sources
Winnings from lottery and racehorses      
Capital Gains      
Profit from a Partnership Firm        
Income from Proprietary Business/ Profession          
Income from Presumptive Business/ Profession          
Foreign Assets Income      
Tax Relief under sections 90, 90A or 91      

FAQs

Should NRI file return?

It is not mandatory for NRI to file an income tax return in India. However, there are three conditions in which NRI must file the return.
1. Their income in India exceeds the basic exemption limit
2. If excess taxes were deducted and they wish to claim the refund
3. If they wish to carry forward capital losses

Do I need to file return if my income is not taxable?

No, you are not required to file income tax return if your income is not taxable (i.e below basic exemption limit for given assessment year). However if you incurred any losses (Business or Capital), you must file income tax return to carry forward such losses.

Do I need to file return if I have already paid taxes?

It is very common for salaried individuals to have all their taxes deducted by their employer. Still, you must file income tax return to claim any refund and/or carry forward any losses.

What happens if I do not file a return?

If you do not file income tax return, I-T Department will send you a notice telling you to file your return. If you have an outstanding tax liability then you will incur interest penalty u/s 234A, 234B and 234C. If you have refund and you do not file returns then you will not be able to claim refund. Hence, it is always advisable to file income tax return.

Are there any benefits of filing return?

It is always beneficial to file income tax return. Here are few benefits
1. You can only claim refund if you file return
2. You can avoid interest penalty and/or default
3. IT return is a documentary evidence of your incomes
4. Banks, Consulates, other Financial Institutions demand IT return

Can a minor file income tax return?

Any person under the age of 18 is considered a minor. Although income earned by minor is taxable just like any other, minor can not file their independent tax return baring few exceptions. Minor’s income is clubbed with his/her parents income under section 64(1A). However in following instances, a minor can file Income Tax Return
1. None of the parents are alive
2. When minor earns income using special skills or knowledge

Which ITR Form Number to fill?

Before you start filing your Income Tax Return – ITR, you need to know Which ITR form number to fill. Income tax department issues the ITR forms based on:

  1. The Type of Taxpayer,
  2. Source of Income earned by the taxpayer.

These ITR Forms will be applicable for a particular financial year. Hence one needs to select the correct ITR Form before filing it.

Check which ITR Form to file?
Income Tax Return Forms to file depends on your Income Source, Residential Status, and other financial situation. Know which ITR Form you should file.
Explore
Check which ITR Form to file?
Income Tax Return Forms to file depends on your Income Source, Residential Status, and other financial situation. Know which ITR Form you should file.
Explore

What are the different ITR Forms?

Although the Income Tax Department (ITD) has prescribed 7 different ITR form number, taxpayers have to choose the one which is applicable to them.

Following ITR Forms are prescribed for Individuals (Non-corporate assessees):

ITR Form Description
ITR 1 The most basic ITR form for individuals having income up to Rs. 50,00,000 from or income from salary/pension, one house property, and interest.
ITR 2 For individuals/HUF having income from salary/pension, multiple house property, capital gains, interest, and partner’s income from the partnership firm.
ITR 3 For individuals/HUF having income from salary/pension, multiple house property, capital gains, interest, and income from proprietary business or profession.
ITR 4 For individuals/HUF/Partnership firms having income from presumptive business or profession, salary/pension, one house property, and interest up to Rs. 50,00,000. 

Following ITR Forms are prescribed for corporate assesses:

ITR-5 For firms, an association of persons (AOP), Body of Individuals (BOI), co-operative societies, and local authorities.
ITR-6 For companies claim that do not claim an exemption under section 11 (such as a charitable or religious trust).
ITR-7 For trusts, political parties, scientific research organizations, colleges, and universities.

Know Which ITR Form you are Required to Fill

Sources of Income Individual Individual/ HUF
ITR-1 (SAHAJ) ITR-2 ITR-3 ITR-4 (SUGAM)
Salary/Pension income

Income From One House Property
Income From Multiple House Property     
Agricultural income exceeding Rs. 5,000/-    
Income from Other Sources
Winnings from lottery and racehorses    
Capital Gains    
Profit from a Partnership Firm      
Proprietary Business/ Profession income      
Income from Presumptive Business/ Profession      
Income From Foreign Assets     
Tax Relief under sections 90, 90A or 91    

FAQs

Which ITR should I fill if I have earned salary income during the year?

You need to file ITR-1 if you have only earned a salary income during the year. However, if the salary earned during the year is more than INR 50 lacs then you need to file Income Tax Return Form 2.

I have earned rental income from 2 properties and interest income during the year, which ITR form is applicable to me?

Income Tax Return 2 form is applicable if the taxpayer has rental income from 2 properties and interest income.

I have earned an agriculture income of INR 3,50,000 during the year, which ITR needs to be filed?

Even though agriculture income is an exempt income. You need to file Income Tax Return 2. Since ITR-1 cannot be filed if agriculture income exceeds INR 5,000.

I am freelancer which ITR should I file?

A freelancer can file ITR-4 or ITR-3 depending on turnover and profit from business/ profession.

I am Stock Market Trader, which ITR should I file?

Stock Market trader can file ITR-3 or ITR-4 depending on type of trading, turnover and profit from trading activities.