Income Tax Return (ITR) 4 Filing Form | How do I file my ITR-4 Form?

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.

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).

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)

	Small businessmen	Professionals	Transporters
Eligible business	The taxpayer may be in any wholesaling, retailing, trading, civil construction, or any other business	Legal services Technical consultancy interior decoration Engineering and architectural Medical	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 vehicles 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)

ITR-4 can be submitted both online and offline as well.

The following individuals can file offline form:

Individuals at the age of 80 years or more
The individual's income is less than Rs.5 Lakh and he does not have to claim a refund in the income tax return

ITR 4 can be filed offline :

By furnishing a return in a physical paper form
By furnishing a bar-coded return (An acknowledgment will be issued at the time of submission of the physical paper return)

By furnishing the return digitally using the digital signature.
By transmitting the data electronically and then submitting the verification of the return made in Form ITR-V.

If the ITR-4 Form is under digital signature then an acknowledgment will be sent to the registered email id.

	Small businessmen	Professionals	Transporters
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	Legal services Technical consultancy interior decoration Engineering and architectural Medical	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 vehicles 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)