ITR-4 EFiling <= 75 Lakhs
The Income Tax Return Form 4 (ITR-4) in India is a simplified income tax return form designed for individuals, Hindu Undivided Families (HUFs), and firms (excluding LLPs) who opt for the Presumptive Taxation Scheme under Section 44AD, Section 44ADA, or Section 44AE of the Income Tax Act, 1961. Here’s a comprehensive guide on ITR-4:
To successfully submit your income tax return (ITR) using onBharatCorp Services, for the ITR-4 category, you will require several essential documents.
1. Bank statements.
2. Form 16 or Form 16A (TDS certificates).
3. Profit & Loss Account details (if applicable).
4. GST details (if registered under GST).
5. Proof of investments for deductions u nder Chapter VI-A (e.g., Section 80C, 80D).
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Penalties for Non-Filing
Late Fee:
₹1,000 for income below ₹5 lakh.
₹5,000 for income above ₹5 lakh.
Interest under Section 234A: 1% per month on tax due.
Advantages of ITR-4
Simplified reporting for small businesses and professionals.
No detailed books of accounts required.
Easier compliance with presumptive taxation rules.
Who Should File ITR-3?
1. Individuals and HUFs earning income from:
2. Business or profession (including proprietary business or profession).
3. Income as a partner in a partnership firm (business or profession).
4. Other sources such as:
5. Salary or pension.
6. House property.
7. Capital gains.
8. Other sources like interest, dividend, etc.
9. Taxpayers who are required to maintain books of accounts under the Income Tax Act.
FAQs
1. Can I file ITR-4 if I have multiple house properties?
No. Only one house property income can be declared under ITR-4.
2. Can I declare losses in ITR-4?
No. Losses cannot be carried forward when opting for presumptive taxation.
3. Is GST mandatory to file ITR-4?
No, GST is not mandatory, but details must be included if registered.
Key Due Dates
Filing due date (non-audited cases): 31st July of the assessment year.
Tax audit cases (if opting out of presumptive scheme): 31st October.
Who Should File ITR-4?
Eligible Taxpayers:
Individuals and HUFs.
Partnership Firms (excluding LLPs).
Taxpayers with income from:
Business or profession under the presumptive taxation scheme:
Section 44AD: Business income for turnover up to ₹2 crore.
Section 44ADA: Professional income for gross receipts up to ₹50 lakh.
Section 44AE: Income from goods transportation using up to 10 goods carriages.
Salary, pension, or income from other sources (like interest).
One house property (except when loss is carried forward).
Who Should NOT File ITR-4?
Individuals or firms whose turnover exceeds prescribed limits under the presumptive taxation scheme.
Taxpayers with income:
From more than one house property.
From capital gains.
From speculative business, commission, brokerage, or foreign assets.
Subject to tax deducted/collected at source under special cases.
LLPs or companies.
Key Features of ITR-4
Presumptive Taxation: Taxpayers declare income at a fixed rate of turnover:
Business income: 6%-8% under Section 44AD.
Professional income: 50% of gross receipts under Section 44ADA.
Simplified Filing: No need to maintain detailed books of accounts if opting for presumptive income.
E-Filing: Can be filed online with or without a digital signature.
Business and Professional Codes: Required to mention business/profession codes based on your work.
Structure of ITR-4
The form is divided into several sections:
Part A: General Information:
Name, PAN, address, Aadhaar, filing section, etc.
Part B: Gross Total Income:
Income from business/profession, salary, house property, and other sources.
Part C: Tax Computation and Tax Status:
Tax liability, tax deducted at source (TDS), tax paid, and refund details.
Schedule BP: Business/profession income details under presumptive taxation.
Schedule IT: Details of advance tax and self-assessment tax payments.
Schedule TDS: Tax deducted at source details.
Verification: Declaration and signature.
