Form ITR-4 is filed by the taxpayers who have opted for the presumptive income scheme under Sections 44D, 44DA, and 44AE of the Income Tax Act,1961.
However, this is subject to the business turnover limit i.e, in case if the turnover exceeds Rs.2 Crore then the taxpayer would be required to file ITR-3.
Presumptive Taxation scheme is a scheme that has exempted the small taxpayers from maintaining the books of accounts.
ITR-4 can be submitted both online and offline as well.
The following individuals can file offline form:
ITR 4 can be filed offline :
If the ITR-4 Form under digital signature then an acknowledgment will be sent to the registered email id.
Form ITR-4 is to be filed by those individuals whose income comes from the following sources:
The following individuals need to file ITR-4:
All Inclusive Pricing - No Hidden Fee
all inclusive fees
Income tax return filing for a taxpayer with taxable income of less than Rs.10 lakhs.
all inclusive fees
Income tax return filing for a taxpayer with taxable income of less than Rs.25 lakhs.
all inclusive fees
Income tax return filing for a taxpayer with taxable income of more than Rs.25 lakhs.
The structure of Form ITR-4 is as follows
Under presumptive taxation scheme, there is no requirement to maintain the books of accounts
The net income is estimated to be 8% of gross cash receipts. However, for payments received via digital mode, the net income is assumed to be 6% of such gross receipts.
Deduction of any business expense against this income is not allowed.
The business owner has to pay 100% Advance Tax by the 15th of March. There is no need to comply with quarterly installments of due dates of Advance tax (i.e. in June, Sep, Dec)
|Applicable Income Tax Section||Section 44AD||Section44ADA||Section44AE|
|Eligible business||The taxpayer may be in any wholesaling, retailing, trading, civil construction, or any other business||Entities of business involved in hiring, plying, or leasing of goods carriages|
|Maximum turnover limit||Up to Rs 2 crore in a year||Annual receipts of not more than Rs.50 lakh.||Owning not more than 10 goods vehicle during the year.|
|Computation||8% of total receipts and electronic receipts shall be charged at 6% of gross turnover during the year.||50% of gross receipts. A higher-income of more than 50% can be declared||₹ 7,500 per vehicle per month or part thereof based on the duration for which the vehicle was owned by the person during the year|
|Deductions allowed||No further deductions and exemptions are allowed||No further deductions and exemptions are allowed||No further deductions and exemptions are allowed
(A partnership can claim deduction and interest to the partners from the computed income at RS. 7500 vehicle per month)
A taxpayer who meet the criteria:
The taxpayers must indicate the amount of the deposit or the expenses incurred
Under Part A, the "Government" checkbox stands changed to "Central Government" and "State Government" and a checkbox 'Not applicable has been introduced under the 'Nature of employment' Section.
Returns filed under the section have been segregated as normal filings and filings in response to notices.
Schedule VI-A for the tax deduction has been amended to include deduction under Section 80EEA and Section 80EEB. Under section 80 G a drop-down is provided to enter details of the donations.
In Schedule BP, the gross turnover or gross receipts are required to include revenues from the prescribed electronic modes received before the specified date.
Tax deduction details claims for investments or payments or expenditure made between 1 April 2020 to 30 June 2020.
ITR-4 must be filed by individuals / HUFs and Professionals who have opted for the presumptive income scheme as per Section 44AD ,Sec 44ADA and Section 44AE of the Income Tax Act.
ITR-4 cannot be filed by taxpayers who fall into the below category :
ITR-4 form is to be used when the assessee has income that falls into the below category :
Due date for filing income tax return is 31st July for Individuals and 30th September for Businesses.
Last updated: June 07, 2021