ITR 4
Easily setup a sole proprietorship with registrations, LEDGERS and business bank account.
Benefits
- Fewer legal formalities than LLP.
- Associated with the GST and income tax departments.
- Full control over the business for the sole proprietor.
- No separate business tax filings.
- Easy to disassemble.
Offers and discounts
Save 18% with GST Registration
Get GST e-invoice with Input Tax Credit
Get Whatsapp Support
Chat with Us for Hassle-Free Tax Solutions!
Get Free Consultation
Get Free Consultation Before Action: Call or Meet Us in Person!
Sugam ITR 4 Filing Process You Must Know
The ITR 4 Filing is for the HUFs, individual taxpayers and firms that have opted for the presumptive income scheme under the Income Tax Act, 1961, Section 44AE, 44ADA and 44AD. LLPs are not eligible for this form. Sellers, freelancers, lawyers, manufacturers, engineers, wholesalers, doctors, vloggers and bloggers fall under this category. ITR-4 is for small businesses that only record sales ledgers according to the requirements rather than maintaining account books.
Process of ITR 4 Filling
Keep documents ready beforehand because the process of ITR 4 Filling is complex as follows:
Step 1:
Register on the Income Tax Department portal and download the offline utility or reliable third-party software.
Step 2:
Start filing your ITR-4 form under the ‘Income Tax Returns’ in the 'e-filing menu.'
Step 3:
The form has six sections. The first is about your personal information and the second is about your gross total income. In the third, you must mention the disclosures and exempt income. Mention total deductions in the fourth, taxes paid in the fifth and total tax liability in the sixth.
Step 4:
Get the form digitally verified via digital signature, an Electronic Verification Code (EVC) or an Aadhaar OTP. You may verify the form manually by signing the ITR-V Form and sending it to the Income Tax Department via post within 120 days of filing on the portal. You will get a confirmation regarding the receipt of the form on your email ID that you mentioned on the portal.
Documents for Income Tax Return Form ITR 4
- Form 16 (for salaried income), Form 16A (the TDS certificate).
- Aadhaar card and PAN card are linked to each other.
- Form 26AS (TCS and TDS Credits).
- Receipts of investment premium payment.
- Form AIS (Annual Information Statement).
- Bank Statements.
- Investment Proofs.
- Proof of Business Income.
- Rental receipts and agreement.
- Housing loan interest certificate.
- Receipts for donations made.
Fill out the ITR-4 on time if you have these documents.
Who Can File ITR 4?
Here’s who can file ITR 4:
- The turnover of the business is more than Rs. 2 crore.
- The taxpayer falls under the presumptive income scheme under the Income Tax Act, 1961, Section 44AE, 44ADA and 44AD.
- Total income is less than Rs. 50 lakhs.
- Agricultural income is less than Rs. 5,000.
- Income sources are one house property, salary, pension and interests from income tax refunds, savings accounts, deposits (co-operative society, post office or bank) and enhanced compensation.
Who Cannot File ITR 4 Income Tax?
You cannot file ITR 4 Income Tax if:
- Your total income is more than Rs. 50 lakhs.
- You are a director in a company.
- You fall under the category of non-residents or RNOR.
- You maintain books of accounts under the Income-tax Act, 1961 as an individual, partner in a business or HUF.
- Your income sources include racehorses, winning lotteries and other related sources.
- Your TDS was deducted according to Section 194N.
- You have virtual digital assets such as cryptocurrency.
- You have unlisted property shares.
- You have more than one house property.
- Your agricultural income is more than Rs. 5,000.
- You earn via capital gains.
- Your income gets taxed at special rates under specific sections.
- You have income sources from outside India.
- You are a signing authority for foreign assets or you own foreign assets.
- You are claiming for tax relief under the sections 90/90A/91.
Complete ITR 4 Filing with the Right Tax Consultant at the Right Time
Final Words
The essence of the ITR 4 filing is that you do not have to attach additional documents or TDS certificates. However, you must have them to ensure proper details to the Income Tax Department. A mistake in the ITR 4 filling process can be an overhead because it is a complex and comprehensive form. Thus, contact a reliable tax consultant to be ready with the required documents, enter the correct details in the form and submit it on time.
FAQs
What Professions Fall Under ITR 4 Filing?
Professions under ITR 4 filing are legal, entertainment, technical consultancy, architecture, medical, accountancy and more.
May Fill Out the ITR-4 Form if I Have a Business Income?
Yes, you may fill out the ITR-4 Form if you have a business income. However, fill out this form after filing the Form 10 IEA according to the old tax regime.
Can I Switch from ITR-4 to ITR-3?
Yes, if your business income exceeds the presumptive income limit, you can switch to ITR-3.
Can I File ITR-4 Offline?
You may file ITR-4 offline via the offline utility. If you have partially filled the form in the online mode, you may use Import Draft ITR. However, offline form filling is not available for every taxpayer.
What Is the Presumptive Taxation Scheme Under ITR-4?
According to the Presumptive Taxation Scheme, the income is calculated as a percentage of gross receipts. Similarly, there is no need to maintain detailed accounts. Businesses with a turnover below a certain limit can opt for this scheme.
