What is ITR 4 Form: How to Fill, Structure & Eligibility

Individuals, HUFs (Hindu Undivided Families), and firms that opt for a presumptive income structure can ITR fill out form 4.

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Have you ever wondered how small business owners who don’t maintain formal books of accounts but keep a sales ledger file their Income Tax Returns (ITR)? The answer lies in the ITR-4 form. What is ITR 4? This form is used by retailers, traders, wholesalers, manufacturers, and others in similar categories.

Freelancers in the digital media industry, such as web content writers, bloggers, and vloggers, must also complete and file ITR-4 online. Additionally, professionals like chartered accountants, doctors, lawyers, and engineers must submit this form.

Individuals with regular income sources (such as salaries) and non-regular sources (such as freelance work or side businesses) must file the ITR-4 form online. This also applies to those with financial gains from trading in Futures and Options (F&O), cryptocurrencies, commodities, or foreign exchange.

What is ITR-4 Form?

One of the forms that may be used to file income tax is the ITR-4 or Sugam form. It applies to taxpayers who have selected a presumptive income method. The procedures for this plan are described in Articles 44AD, 44AE, and 44ADA. Nonetheless, if the company’s annual revenue exceeds two crores, the taxpayer must submit form ITR-3.

How to Fill the ITR-4 Form?

There are two methods for filing income tax ITR. The first is the online mode, while the second is the offline mode. Learn how to file ITR 4.

Offline Filing Technique for ITR-4

You may only submit the ITR-4 form offline in the following instances.

If you are 80 or older, you are considered a super senior citizen.

If your income is less than ₹5 lakhs, you do not need to seek a refund.

The process is as follows.

Provide the ITR-4 form on paper.

Deliver the barcoded return.

The Income Tax Department will give an acknowledgment after the actual paper has been received.

The Online Filing Procedure for ITR-4

Submit the ITR-4 form online using the e-filing portal at www.incometaxindiaefiling.gov.in. You can check the filings using any of the following methods.

Signing the verification section digitally.

Using EVC or electronic verification code for Aadhaar OTP authentication.

Fill out and mail a copy of the income tax return verification form, ITR-V, to this address- Bangalore— 560500, Karnataka, Centralized Processing Centre, Income Tax Department.

This ITR-V verification form should reach the office within 120 days of submission. In addition, CPC will confirm receipt of ITR-V via the email address you used to register for e-filing. That’s how to file ITR-4 electronically!

Who is Required to File ITR-4?

Any individual, HUF, or firm can file ITR 4 form if:

Income during the financial year does not exceed ₹50 lakhs.
They have an income source from business and profession under sections 44AD, 44ADA, or 44AE.
Income from salary or pension, one house property, and agricultural income up to ₹5000.
Income from other sources, which includes excluding income from lottery and race horsing.

Who is Not Required to File ITR-4?

ITR 4 form cannot be filled by individuals, HUF, and firms who:

Has income exceeding the limit of ₹50 lakhs.

Is a resident but not an ordinary resident (RNOR) or non-resident Indian?

Is a director in a company.

Has income from more than one house property.

Has income from lottery or race horsing.

Structure of ITR-4 Form

The ITR-4 form has been separated into many sections. Each section requests information about various facets of an individual’s tax return. First, the structure of the ITR-4 form must be examined.

PART A comprises the basic information such as name, date of birth, and residence.

PART B includes the gross income from five types of pay such as salary, rental property, and other income.

PART C is for deductions and taxable income in its entirety.

PART D pertains to tax status and tax calculations.

SCHEDULE BP contains information about revenue from a company or profession.

SCHEDULE IT details advance tax payments and self-assessment tax payments.

ANNEX TCS is information on tax collected at the source.

SCHEDULE TDS-1 contains information on salary tax withholding.

SCHEDULE TDS-2 contains the particulars of tax deducted at source on all sources of income other than wages.

Eligibility Criteria to file ITR 4 form

Here is a list of individuals that qualify for income tax ITR filing. If you fall into this group, you must file your tax returns using the ITR-4 form.

Individuals or Hindu Undivided Families that are RNOR (resident other than not usually resident) or a company that is not a Limited Liability Partnership but is a resident and has a taxable income of fewer than ₹50 lakhs for the fiscal year file form ITR-4.

Additionally, their earnings fall into the following categories:

Income derived from a business when determined on a presumptive basis following Section 44AD and the business has a gross turnover of up to ₹2 crores. Alternately, under Section 44AE, which pertains to income from up to ten freight carriages.

Gross receipts of up to ₹50 lakhs from a profession where income is determined on a presumptive basis according to Section 44ADA.

Remuneration from pay or pension.

Income from a residential property.

Other than the family pension, interest income from other sources is taxed.

Documents Required to File ITR-4

Taxpayers who are ITR 4 filing are required the following documents:

Form 16
Form 16A
Form 26AS & AIS
Bank Statements
Housing Loan Interest Certificates
Receipts for donation Made
Rental Agreement
Rent Receipts
Investment premium payment receipts, etc.

Conclusion

The ITR-4 Sugam is one of the forms that can be used to file taxes and is available to taxpayers. It applies to taxpayers who have chosen to calculate their income using the presumptive approach—articles 44AD, 44AE, and 44ADA detail the processes that must be followed to implement this strategy.

FAQs on ITR 4

Can I file ITR 4 offline also?

Yes, you can file your ITR-4 offline if you are 80 years or older, have an income of less than ₹5 lakhs, and do not claim any refunds.

What happens in case you fail to disclose some income?

Failing to disclose certain income is considered misreporting of income under section 270A of the Income Tax Act. You will be fined 200% of the tax due on the misreported income.

How is business income calculated under the presumptive taxation scheme?

Business income is calculated according to section 44AD of presumptive taxation. Your net income is 8% of your turnover, and if you have non-cash receipts, then 6% of your receipts are considered your net income.

Can I claim deductions under Section 80C in ITR 4?

Yes, you can claim deductions under 80C PPF, ELSS mutual funds, and insurance.

Is it mandatory to maintain books of accounts if I file ITR 4?

Yes, it is mandatory to maintain books of accounts while filing ITR-4. If your income exceeds ₹1,20,000 or your gross receipts exceed ₹10 lakhs in the preceding three years.

How do I file ITR 4 online?

To complete the ITR 4 form online, you can visit the Income Tax Department’s e-portal and file the ITR using digital signatures or by electronically verifying through EVC(Electronic Verification Code).

Can ITR 4 be filed using the offline utility?

If you have already filled half of the ITR in online mode and wish to change the mode from online to offline, you can import the draft ITR filled.

Suggested Readings

1. 4 Benefits of Filing Your ITR on Time

2.Filing your Income Tax Return: Be Prepared With These Essential Documents

Written By :

Amit Raje

Amit Raje is an experienced marketer who has worked in various Fintechs and leading Financial companies in India. With focused experience in Digital, Amit has pioneered multiple digital commerce in India. Now, close to two decades later, he is the vice president and head of the D2C business department. He masters the skill of strategic management, also being certified in it from IIMA. He has challenged his challenges and contributed his efforts in this journey of digital transformation.

Reviewed By :

Prasad Pimple

Prasad Pimple has a decade-long experience in the Life insurance sector and as EVP, Kotak Life heads Digital Business. He is responsible for developing user friendly product journeys, creating consumer awareness and helping consumers in identifying need for life insurance solutions. He has 20+ years of experience in creating and building business verticals across Insurance, Telecom and Banking sectors

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What is ITR 4 Form: How to Fill, Structure & Eligibility

What is ITR-4 Form?

How to Fill the ITR-4 Form?

Offline Filing Technique for ITR-4

The Online Filing Procedure for ITR-4

Who is Required to File ITR-4?

Who is Not Required to File ITR-4?

Structure of ITR-4 Form

Eligibility Criteria to file ITR 4 form

Documents Required to File ITR-4

Conclusion

FAQs on ITR 4

Can I file ITR 4 offline also?

What happens in case you fail to disclose some income?

How is business income calculated under the presumptive taxation scheme?

Can I claim deductions under Section 80C in ITR 4?

Is it mandatory to maintain books of accounts if I file ITR 4?

How do I file ITR 4 online?

Can ITR 4 be filed using the offline utility?

Suggested Readings

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