ITR 4 Form Filing

Who is Eligible to file Form ITR 4?

Individuals whose income comes from the following sources have to file ITR 4 Form:

• Business Income under Section 44AD/Section 44AE.
• Income from a profession as per Section 44ADA.
• Income up to Rs. 50 lakh from Salary or Pension.
• Income up to Rs. 50 lakh from One house property (that does not include the brought forward loss o loss that is to be brought forward under this head)
• Income from other sources up to Rs.50 lakh (does not include winning from lottery or horse races)
• Form ITR 4 can also be filed by the freelancers if the income is not exceeding Rs.50 lakh.

Who is not eligible for ITR 4 Form?

The following individuals need to file ITR-4:

• Holds Directorship in a company
• Holds any unlisted equity shares at any time during the previous year
• Has assets/financial interest in an entity outside India
• Has signing authority in any account outside India
• Has income from a source located outside India
• Has profits from a business or profession which is not required to be computed under sections 44AD, 44ADA, or 44AE, like income from a speculative business, commission, brokerage, etc.
• Makes Capital Gains
• Has income from more than one house property
• Has income under the head "other sources" from winning the lottery, horse races, income taxable at special rates u/s 115BBDA or 115BBE
• Has income which is to be apportioned under the provisions of Section 5A
• Has agricultural income exceeding INR 5,000
• Has any brought forward loss or loss which is to be carried forward under any income head
• Has loss under “income from other sources”
• Has a claim of relief under Sections 90, 90A or 91
• Has any deduction claim under Section 57 (except deduction relating to family pension)
• Has claim of tax credit which has been deducted at source in the hands of another person
• Has joint ownership in house property (inserted in AY 20-21).

Components of ITR 4 Form

The structure of Form ITR-4 is as follows

• Part A: General Information
• Part B: Gross total income under the five heads of income
• Part C: Deductions and Total Taxable Income
• Schedule BP: Details of Income from Business
• Schedule 80G: Details of Donations entitled for deduction under Section 80G
• Schedule IT: Statement of payment of advance tax and tax on self-assessment
• Schedule- TCS: Statement about Tax Collected at source
• Schedule TDS1: Statement of Tax Deducted at Source on Salary
• Schedule TDS2: Statement of tax deducted at source on income apart from salary
• Verification Scheme

Presumptive Taxation Scheme