ITR-4 Return Filing

ITR-4 Return Filing

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Income tax return filing for a taxpayer with taxable income of less than Rs.10 lakhs.


Income tax return filing for a taxpayer with taxable income of less than Rs.25 lakhs.


Income tax return filing for a taxpayer with taxable income of more than Rs.25 lakhs.

ITR 4 Form Filing

Form ITR 4 is completed by taxpayers who have chosen the Presumptive Taxation Scheme under Section 44D, 44DA, 44AE of the Income Tax Act, 1961. However this is below the business benefit limit i.e. if the profit exceeds Rs.2 crore the taxpayer is required to complete Form ITR 3.

What is Presumptive Taxation in the Scheme?

The Presumptive Taxation Scheme is a program that frees small taxpayers from taking care of account books.

Who is eligible to submit Form ITR 4?

Persons with income from the following sources must complete Form ITR 4:

  •       Business Income under Section 44AD / Section 44AE.
  •       Income from work in terms of Section 44ADA.
  •       Income up to Rs. 50 lakh in salary or pension.
  •       Income up to Rs. 50 lakh from one part of the house (excluding forward losses or losses due under this heading)
  •       Revenue from other sources up to Rs.50 lakh (does not include winning lottery or horse racing)
  •       The ITR 4 form can also be submitted by private staff if the income does not exceed Rs.50 lakh.

Who does not qualify for the ITR 4 Form?

The following people need to file an ITR-4 file:

  •       He holds the Directors in the company
  •       You own any unlisted shares at any time during the past year
  •       He owns property / financial interest in a business outside of India
  •       You have the authority to sign up for any account outside of India
  •       He has income from a source outside India
  •       It has profits from a business or profession that do not need to be listed under sections 44AD, 44ADA, or 44AE, such as revenue from speculative business, commission, brokerage, etc.
  •       Make Money
  •       He has income from more than one home
  •       You have income under the heading “other sources” for winning the lottery, horse racing, taxable income at special rates / s 115BBDA or 115BBE
  •       You have the income to be apportioned under the provisions of Section 5A
  •       He has more than INR 5,000 in agricultural income
  •       Is there any loss or loss that should be transferred under any income head
  •       It can lose less “revenue from other sources”
  •       You have a claim for exemption under Section 90, 90A or 91
  •       You have any claim on a Section 57 deduction (other than a family pension deduction)
  •       You have a tax credit claim where it came from someone else’s hands
  •       It has shared ownership of the house area (included in AY 20-21).

Components of ITR Form 4

The structure of Form ITR-4 is as follows

 Part A: General Information

Part B: Total income under five head of income

Part C: Deductions and Total Tax Revenue

Schedule BP: Business Income Information from the Business

Schedule 80G: Details of Donations entitled to deductions under Section 80G

IT Schedule: A statement of prepaid tax and tax on your self-assessment

Schedule- TCS: Statement on Tax Collected by Source

Schedule TDS1: Income Tax Statement Statement

TDS2 Schedule: Statement of income tax deduction

Verification System

Presumptive Taxation Scheme

What are the features of the Presumptive Taxation Scheme?

Under the taxable consideration system, there is no need to keep account books

Revenue is estimated at 8% of total receipts. However, for payments received in digital mode, revenue is accounted for as 6% of the total receipts.

Withdrawal of any business expenses from this revenue is not permitted.

The business owner must pay 100% Advance Tax by 15 March. There is no need to adhere to the quarterly terms of the relevant Advance tax dates (i.e. June, Sep, Dec)

How to submit an ITR 4 Form?

ITR-4 can be sent both online and offline as well.


The following people can submit the form offline:

  •       People 80 years of age or older
  •       A person ‘s income is less than Rs.5 Lakh and he / she does not need to claim a refund on income tax return.

ITR 4 can be installed offline:

  •       By providing a refund in the form of a real paper
  •       By providing a barcode return (Confirmation will be issued at the time of delivery of the original paper return)

Online / Electronic

By providing a digital refund using a digital signature.

By sending the data electronically and submitting the return confirmation made in Form ITR-V.

If Form ITR-4 is under digital signature then approval will be sent to the registered email id.

Major amendments made to the ITR 4 Form AY 2021 - 2022

The changes included in the ITR 3 Form are:

Step-1 No major changes were made to the ITR 4 Form compared to the changes made last year.

Step-2 Form ITR 4 of AY 2021-2022 has been updated with a declaration of choice between the old and new tax systems. This notice is subject to Part A for general information such as “Do you prefer a new tax scheme under section 115 BAC where the taxpayer has to choose between ‘Yes or No’.

Step-3 Part B – Under Revenue from other sources deductions such as interest from savings account, deposit, etc. will be provided on the efiling device and specify the type of income. In the case of dividends, quarterly dividends must be provided to allow for effective exemption from interest payment for failure to pay advance tax under section 234C.

Step-4 The DI schedule for AY 2020 – 2021 has been deleted.

Frequently Asked Questions

In the case of ITR 4, it is not necessary to disclose the balance sheet details.

It is not necessary to disclose personal assets in ITR4. The assets held solely for the purpose of conducting business shall be shown on ITR 4. You may indicate the amount of Nil (Zero) in respect of most creditors, founders, and Cash. There will be no error in verification and refunds may be added.

Yes, Form ITR 1 can be converted to ITR 4.

Inventories are assets that include completed assets, ongoing work, and company-owned equipment to be sold in the future. It also includes consumer goods stored for resale and maintenance goods, as well as materials used in the production process.

Switching from ITR 3 to ITR 4 will not be done unless it is sold out.

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