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ITR 4 Form – Income Tax Filing for Presumptive Income

Last Update Date : April 16, 2018

Filing your IT returns is just as important as paying your taxes and choosing the right ITR form is just as essential for that matter. ITR-4 form is one of the seven ITR forms that the taxpayers have to choose to file their taxes. ITR-4 form is to be filed by a certain group of people. So before determining which ITR for you should file, it is always wise to check your eligibility to file the form.

In this guide, we will be discussing ITR 4 form and how it should be filed.

Latest Update: The CBDT has renamed the old ITR 4S to ITR-4 (Sugam). The ITR-4 that was used earlier (FY 2015-16) is now replaced with ITR 3.

What is ITR 4 Form used for?

ITR 4 is an Income Tax Return form that is used by the taxpayers who have opted for taxation under presumptive income scheme under Section 44AD, Section 44ADA and Section 44AE of the IT Act. However, a taxpayer will have to file ITR 3, if the annual turnover of his business exceeds Rs 2 crores.

Who is eligible to File ITR 4 for AY 2017-18?

It is always necessary to make sure that you are eligible to file ITR 4 form before choosing to file it. Your eligibility to file ITR 4 form can be determined if you are one of the taxpayers* mentioned below.

  • If you are a professional carrying out a profession as mentioned under Section 44AA, for example, a doctor, and if your gross receipts are less than or equal to Rs 50 lakh, you can choose the scheme under Section 44ADA.
  • If you are earning an income from an eligible business and if your gross receipts from this business are not more than Rs 2 crore, you can choose this scheme under Section 44AD.
  • If you are engaged in a goods transportation business and if you own less or equal to 10 goods carriages along with having opted for presumptive taxation scheme under Section 44AE can file ITR 4.
  • If you have income from salary or pension.
  • If you have income from one house property.
  • If you have income from other sources (exclusive of income from winning a lottery and race horses)

*Taxpayer

  • an Individual, HUF or a partnership firm, who is a resident, but not a Limited liability partnership firm
  • who has not claimed deduction under any of the sections 10A, 10AA, 10B, 10BA or deduction under any provisions of Chapter VI-A under the heading “C – Deductions in respect of certain incomes” in the relevant assessment year.

[ Calculate Your Income Tax Liability ]

Who does not have to file ITR 4 Form?

People who are ineligible to file ITR 4 form fall under the criteria given below:

  • If you have income from horse races or winning a lottery
  • If you have income under Capital Gains head
  • If you have agricultural income exceeding Rs 5,000
  • If you have income from dividends that you have received from domestic companies
  • If you are claiming relief under Dual Taxation Scheme
  • If you have income from asset that is located outside India
  • If you have special incomes and income from speculative business
  • If you have income as brokerage or commission or from agency business
  • If you have earned income from outside India

[ Read: Which ITR to File? ]

Filing ITR 4 - Business Income Tax Return

Structure of ITR 4

ITR 4 form is divided into several parts, namely Part A, B, C and D followed by verification and signatures section.

Form ITR-4 has the following components:

Part A-GEN: In this section, you are asked to provide your personal information, filing status and audit information.
Nature of Business: This section asks you to provide details of your business or profession.
Part A – BS and Part A – P & L: Here you are required to furnish details of your balance sheet and P & L statement of your proprietary business or profession.
Part A – OI and Part A – QD: These parts are optional in case they are not liable for audit.
Part (B) TI and TTI: Here you are asked to compute and fill your total income as well as taxable income.
Bank Account: Details of all bank accounts held in India at any time during the previous year are filled here.
Verification: You are asked to fill and sign verification statement here.
TRP: If your tax return has been prepared by a Tax Return Preparer then you should provide its details in this section.
Tax Payments: You should fill the details of Advance tax and Self-Assessment tax paid by you. You are also required to provide details of TDS on salary, TDS on other income, TCS on income.
After this, you are required to fill schedules (pages S1-S20) to the return form as applicable.

Schedule-S: Computation of income under the head salaries
Schedule-HP: Computation of income under the head income from house property
Schedule BP: Computation of income from business or profession
Schedule-DPM: Computation of depreciation on plant and machinery under the Income Tax Act
Schedule DOA: Computation of depreciation on other assets under the Income Tax Act
Schedule DEP: Summary of depreciation on all the assets under the Income Tax Act
Schedule DCG: Computation of deemed capital gains on sale of depreciable assets
Schedule ESR: Deduction under section 35 (expenditure on scientific research)
Schedule-CG: Computation of income under the head Capital gains
Schedule-OS: Computation of income under the head Income from other sources.
Schedule-CYLA: Statement of income after set off of current year’s losses
Schedule BFLA: Statement of income after set off of unabsorbed loss brought forward from earlier years.
Schedule CFL: Statement of losses to be carried forward to future years
Schedule UD: Statement of unabsorbed depreciation
Schedule ICDS: Effect of income computation disclosure standards on profit
Schedule- 10A: Computation of deduction under section 10A
Schedule- 10AA: Computation of deduction under section 10AA
Schedule 80G: Statement of donations entitled for deduction under section 80G
Schedule- 80-IA: Computation of deduction under section 80IA
Schedule- 80-IB: Computation of deduction under section 80IB
Schedule- 80IC/ 80-IE: Computation of deduction under section 80IC/ 80-IE
Schedule VI-A: Statement of deductions (from total income) under Chapter VIA
Schedule AMT: Computation of alternate minimum tax payable u/s 115JC
Schedule AMTC: Computation of tax credit u/s 115JD
Schedule SPI:Statement of income arising to spouse/ minor child/ son’s wife or any other person or association of persons to be included in the income of assessee in schedules HP, BP, CG and OS
Schedule SI: Statement of income which is chargeable to tax at special rates
Schedule IF: Information regarding partnership firms in which assessee is a partner
Schedule EI: Statement of Income not included in total income (exempt incomes)
Schedule PTI: Pass through income details from business trust or investment fund as per section 115UA, 115UB
Schedule FSI: Details of income from outside India and tax relief
Schedule TR: Statement of tax relief claimed under section 90 or section 90A or section 91
Schedule FA: Statement of foreign assets
Schedule 5A: Information regarding apportionment of income between spouses governed by Portuguese Civil Code
Schedule AL: Asset and liability at the end of the year (other than those included in Part A-BS) (Application in a case where total income exceeds Rs. 50 lakh.

Form ITR-4 for Presumtive Income From Business and Profession

Latest Changes in ITR-4 Form for AY 2018-19

Changes in ITR 4 Details
More details of salary and house property income Old ITR form required the taxpayers to report only the taxable amount but the new ITR forms require you to report detailed calculation of income from salary and house property.
Penalty for late filing of ITR A new field has been added where the late filers need to provide the details of late filing fees paid.
Reporting additional details under Schedule BP Now, there is an additional requirement to quote GSTR No. and turnover / gross receipts as per GST return filed under Schedule BP of the form in respect of details of business and profession computed on presumptive basis u/s 44 AD or 44AE or 44ADA.
Credit of refund to foreign bank account A field has been added where an NRI taxpayer can provide the details of a foreign bank account in which he wants the credit of the tax refund he wants to claim.
Claiming credit of TDS deducted in the name of another person A new field has been added to facilitate the claim for TDS credit where the TDS was deducted in the name of another person or from a common pool or other similar situations.
Breakup of payments or receipts in foreign currency In the old form, a taxpayer was required to provide only limited details in the section “FINANCIAL PARTICULARS OF THE BUSINESS”, but now he needs to furnish the whole balance sheet in condensed form.
Claiming relief under DTAA The form now asks the taxpayer claiming relief as per DTAA to report more details like rate as per treaty, rate as per I-T Act and applicable rate etc.
Claiming exemption on capital gains The taxpayers now need to provide more details in the form if they are claiming capital gains exemption.
Reporting remission or cessation of trading liability New forms require separate reporting of remission or cessation of trading liability in case of income from other sources.
Reporting GST payments and refunds New columns have been introduced in the ITR forms to report the details of GST paid and refunded.
Removal of gender Taxpayers now do not need to mention their gender in the form.

All these changes have been made by the tax department in the ITR form are aimed at making the assessment procedure online. Therefore, we can see that the department is seeking more and more information from the taxpayers to facilitate e-assessment.

Step by Step Guide to File ITR-4 Form

There are two modes of filing ITR 4, online and offline.

Filing ITR 4 through Offline Method:

You can file an ITR 4 form offline only if you are an individual whose income is less than Rs 5 lakhs and you do not have a refund to claim in the I-T return or if your age is equal to or more than 80 years. You can file the returns in two ways as mentioned below:

  • You can furnish the I-T return in a physical paper form; or
  • You can furnish a bar-coded return

The I-T department will issue an acknowledgement as a response or reply when you submit your physical Income tax return form.

How to File ITR 4 Online?

Filing your Income tax return online has been made compulsory by the government. You can e-file your I-T return in the following ways:

  • You can furnish the return using a digital signature certificate; or
  • You can send the data electronically and then submit the confirmation of the filed return in the Form ITR-V

If you plan to submit your ITR 4 form online under the digital signature option, the I-T Department will send the acknowledgement or response to your registered email ID. You can also download the form from the official I-T website. After downloading it, you will have to sign the form and then send it to the Income Tax Department’s CPC Bangalore office within 120 days of e-filing your tax return.

Since ITR 4 is an annexure less form, you are not required to attach any supporting documents along with it when you send it to CPC Bangalore.

[ Read: How to Send ITR-V to CPC Banglore ]

Tax filing can get really tiring, no matter how many times you have tried filed returns yourself. H&R Block India has a team of well qualified and professional tax experts who will file your business income tax returns for you in minimum time and also help you reduce your tax liabilities. If you haven’t filed your tax return yet, get in touch with us for effective measures. Happy hassle-free tax filing to you!

Not sure how to file your Business Tax Return? Let H&R Block help you file your taxes.
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