ITR-4 Form is an Income Tax Return form that is meant for taxpayers opting for the presumptive taxation scheme under Section 44ADA, Section 44AD and Section 44AE of the Income Tax Act. This income tax return form consists of three parts: Part A, B, and C, along with various schedules.
In this section, you will find details regarding the structure of an ITR-4 (Sugam) form and how to file ITR 4.
The ITR 4 Sugam Form is an income tax return form for those taxpayers who are liable to avail of the presumptive income scheme. The scheme has been detailed in Section 44AD, Section 44ADA and Section 44AE of the Income Tax Act.
Please note that individuals with a business that has an annual turnover of more than 2 crores are not eligible to file ITR 4.
ITR 4 is for individual taxpayers, Hindu Undivided Families or partnership firms that have the following:
Notably, any freelancer with an income not more than Rs. 50 lakh is also eligible for using ITR-4.
Here are some categories of individuals who are not required to file ITR 4.
Before knowing how to file ITR 4, it’s essential to have a clear idea about the structure of this form. The ITR 4 Form comes in three parts.
Let’s take a detailed look at the information you need to provide in each of the parts.
1. Part A
Here, you have to fill up some general information, which includes PAN, name, etc.
2. Part B
This part includes details about gross total income.
3. Part C
Here, you need to provide details regarding deductibles and total taxable income.
In addition to these four parts, the ITR 4 Form also comes with the following schedules:
4. Schedule BP: This portion of an ITR 4 Form will include details of the following:
5. Schedule IT
Here, you have to fill in details about Self Assessment Tax and Advance Tax.
6. Schedule TCS
In this portion, you have to provide data about taxes collected at the source.
7. Schedule TDS 1
Here, you have to input details about the TDS deducted from your salary according to Form 16, which is issued by your employer.
8. Schedule TDS 2
This Schedule will require you to provide details about TDS that is levied on incomes other than your salary (according to Form 16C that the TDS deductor would issue to you).
9. Schedule 80G
This portion will seek details regarding the total amount of deduction that you intend to claim for donations to charitable organisations under Section 80G
Finally, there would be a verification section where you have to provide your signature.
Also Read: Section 194K of The Income Tax Act
You can file ITR 4 Form either offline or online. Here’s how you can file ITR-4 through both processes:
You can file ITR 4 offline in any of the following ways:
The IT Department will issue an acknowledgement when you submit the ITR physically.
You can file ITR-4 electronically through any of these ways:
Note that taxpayers do not have to attach any kind of document along with Form ITR-4.
Understanding presumptive taxation schemes is crucial for anyone who has to file ITR-4. According to the IT Act, individuals in specific businesses or professions have to maintain books regularly and have to get accounts audited. To reduce the hassle of such small taxpayers, the government launched the presumptive taxation scheme under sections 44AD, 44ADA, and 44AE.
Here are some of the notable features of this scheme:
The three sections under the Income Tax Act that offer the presumptive taxation scheme have been discussed in detail.
Please note that the specific professions that can avail of the presumptive taxation scheme have been mentioned under Section 44AA(1) of the Income Tax Act, 1961.
The Income Tax department issues an ITR-V acknowledgement receipt to the taxpayers to verify their e-filing of ITR 4. It is a copy that is sent by email when an ITR form is filed without a digital signature.
Taxpayers are required to download a copy of the ITR-V, sign it and submit it to the Income Tax Department to complete the income tax filing process. This must be done within 120 days of filing the income tax return, or else your e-filing will be considered null and void.
However, if you haven’t received the acknowledgement receipt via email, you can download it from the Income Tax e-filing website by following these steps.
Step 1: Log in to the Income-tax e-filing website.
Step 2: Click on the ‘View Returns / Forms’ tab.
Step 3: Select the option “Income Tax Return”. Enter the assessment year and click on Submit.
Step 4: Click on the acknowledgement number of the income tax return to download your ITR-V copy.
If you are unable to view your ITR-V copy, there might be some issues with your tax e-filing, such as the wrong date of birth provided, name not matching as per pan, etc.
You can contact the IT department through their helpline numbers:
1800 103 0025, +91-80-46122000, +91-80-26500026
Income taxpayers can also opt for e-verification of their tax returns.
There are no significant modifications in ITR 4 Form as compared to the previous year. However, for AY21-22, the ITR-4 Form has been updated to include a declaration of the tax regime that a taxpayer would be choosing (old or new tax regime).
You will find this newly added declaration in Part A: ‘Are you opting for a new tax regime under Section 115 BAC (Yes or No). If yes, please furnish the date of filing of Form 10IE along with the acknowledgement number’.
There has been an addition in Part B, where you need to provide information about interest from a savings account, and fixed deposits. For dividend income, you have to provide a quarterly breakup.
Schedule DI, which was included during AY20-21, has been eliminated this year.
If you are a taxpayer under the presumptive taxation scheme and you need to file ITR 4, you can refer to the above sections. Make sure to provide all the necessary information accurately in the relevant parts and schedules of the form to avoid complications.
Ans: The following do not have to file ITR-4:
An individual with income from house property, salary or other sources exceeding Rs. 50 lakh
A taxpayer whose books of accounts are liable to tax audits under the IT Act
Individual who is a director of any company or has investments in unlisted shares
Ans: Here are some of the major requirements that persons must fulfil to enter this scheme?
The turnover of the business has to be less than Rs. 2 crores.
The individual must be a resident of India.
It is applicable to individuals, partnership firms, or HUFs. It is not for an LLP or any company.
This scheme is not for those who have availed deductions under Section 10, 10A, 10B, 10BA, 80HH, or 80RRB.
Ans: You can be in any business if you want to opt for this taxation scheme. You may engage in retail trading, wholesale trading, construction or any other kind of business. However, this scheme is not for you if you have income from commission, agency business or business of hiring, leasing, etc.
Ans: Taxpayers are eligible to file the ITR-4 Form offline only under the following conditions:
The individual is 80 years of age or more.
The total income of the individual does not exceed Rs. 5 lakh, and he/she does not need to claim a refund through ITR filing.
Ans: If you have opted for a presumptive taxation scheme under Section 44AD, Section 44AE, and Section 44ADA and you have to file ITR-4 at least for 5 years. You cannot discontinue filing this IT Form before the minimum timeframe.
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
|Section 112A||Section 50||Section 245|
|Section 80QQB||Section 32AD||Section 250|
|Section 35D||Section 143 (1a)||Section 115BAB|
|Section 143||Section 79||Section 140A|
|Section 17(2)||Section 3||Section 94A|
|Section 147||Section 80||Section 40A|
|Section 48||Section 115AD||Section 14A|
|Section 45||Section 285BA||Section 6|
|Section 36||Section 87A||Section 80GGA|
|Section 244A||Section 234E||Section 28|
|Section 197||Sectio 548||Section 194J(1)(ba)|
|Section 145A||Section 80P||Section 92CD|
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