|Pay per Filing|
Form ITR 4 is filed by the taxpayers who have opted for the Presumptive Taxation Scheme under Section 44D, 44DA, 44AE of the Income Tax Act,1961. But this is subject to the business turnover limit i.e in case if the turnover is exceeding Rs.2 crore then the taxpayer is required to file ITR 3 Form.
Presumptive Taxation Scheme is a scheme that exempts small taxpayers from maintaining the books of accounts.
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).
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
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 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.
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 returnITR 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.
The Changes that are incorporated in the ITR 3 Form are:
There are no major changes made in the ITR 4 Form in comparison to the changes that were made last year.ITR 4 Form for the AY 2021-2022 has been updated with a declaration to choose between the old and the new tax regimes. This declaration is under Part A general information as " Are you opting for new tax regime under section 115 BAC where the tax taxpayer has to choose between 'Yes or No'. If in case it is Yes, the furnishing date of the Form 101E along with the acknowledgment number has to be filed.
Part B - Under the Income from other sources a drop down like the interest from the saving account, deposit, etc is to be provided in the efiling utility along with specifying the nature of the income. In the case of the dividend income, the quarterly breakup has to be provided for allowing the applicable relief from the charge of the interest for default in the payment of advance tax under section 234C.
Schedule DI that was inserted for AY 2020 - 2021 has been removed.