As a taxpayer, ITR-4 form is one of the seven ITR forms that you use to file your income tax return. In this article by H&R Block, learn everything you need to know about ITR-4 form.
ITR-4, also known as Sugam, is an Income Tax Return form that is used by the taxpayers who have opted for taxation under presumptive income scheme u/s 44AD, Section 44ADA and Section 44AE of the I-T Act.
If you are an individual/ HUF/ partnership firm you can file ITR-4 form. Your income should include:
SIDE NOTE: Freelancers who are involved in the professions mentioned above can also choose this scheme. Although, their gross income should not exceed Rs 50 lakhs.
SUGAM cannot be used in the following cases:
You can file ITR-4 online as well as offline.
You must fulfil the given criteria to file ITR-4 offline:
You can file ITR-4 in the following two ways:
After filing your return, you will receive your ITR-V (ITR verification) form at your registered address. You must sign this form and send it back to CPC Bangalore. You will be issued an acknowledgement after you submit the verification.
Read the following to know the procedure of filing ITR-4 online:
Step 1: Visit the official e-Filing portal (1).
Step 2: File your return with the digital signature.
Step 3: You will receive ITR-V on your registered e-mail id; submit it through bank ATM, Aadhaar OTP, Demat account, etc.
Step 4: You will receive an acknowledgement on your registered email id.
SIDE NOTE: ITR-4 form is an annexure-less return form which means you don’t need to attach any document (including TDS certificate) while you file your ITR for the income tax which is deducted at source.
Once you have submitted the ITR form, you will be required to verify the return either offline or online.
If you have submitted your ITR-4 form online, you can e- verify your return on the Income Tax Department e-Filing portal (2) . You will receive ITR-V on your registered email id, which you can e-sign and submit.
If you have furnished your ITR offline, you will receive an ITR-V form at your registered address. Sign the ITR-V and send it to CPC Bangalore.
|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.
he form should be filled up as per the sequence mentioned below:
ITR 4 form is divided into several parts, namely Part A, B, C and D followed by verification and signatures section.
When your income is calculated based on presumption instead of actual basis, it becomes subject to presumptive income taxation. Presumptive income tax scheme consists of three sections-
You are eligible to file ITR-4 under the presumptive scheme if you fulfil the eligibility criteria under various section which are given in the table below:
|Section||Income source||Condition||Presumptive Income|
|1. Section 44AD||From business||Gross turnover up to Rs 2 crore annually||i. 8% of the turnover|
ii. 6% of the turnover
|1. Section 44ADA||From profession||Gross receipts or gross profit up to Rs 50 lakh annually||50% of the receipt’s value|
|2. Section 44AE||From goods and transportation business||Assessee owns up to 10 vehicles during the same year||Rs 10,000/ 7,500 per vehicle in a month|
Filing Income Tax Return with H&R Block is a simple 4 steps process:
A. Follow the steps given below:
A. Form ITR-4is filed by the people who has opted for presumptive income tax scheme like lawyers, doctors, interior designer, etc. Whereas ITR-3 is applicable only if you are an individual/ HUF and earns income from proprietary business or profession.
A. ITR XML is specifically a file format. It is generated after you have filed the required information of your ITR.
The Income Tax Act, 1961 mandates the citizens to file returns with the Income Tax Department at the end of every financial year. These returns should be filed before the specified due date. We wish you a happy return filing!
Tax filing can get really tiring, no matter how many times you have tried filed returns yourself. H&R Block has a team of well qualified and professional tax experts who will file your business income tax returns for you in minimum time and help you reduce your tax liabilities.