Korpfintax

ITR-4

As per Sections 44AD, 44ADA, and 44AE of the Income Tax Act, 1961, taxpayers who opt for the Presumptive Taxation Scheme are required to file Form ITR-4. However, this is subject to the business turnover limit—if the turnover exceeds ₹2 crore, the taxpayer must file Form ITR-3 instead

Who is Eligible to file Form ITR 4?

  • Business income under the presumptive taxation scheme as per Sections 44AD and 44AE

  • Professional income under Section 44ADA

  • Salary or pension income up to ₹50 lakh

  • Income from one house property up to ₹50 lakh (excluding cases involving carried forward losses under this head)

  • Income from other sources up to ₹50 lakh (excluding winnings from lotteries or horse races)

  • Freelancers with total income not exceeding ₹50 lakh are also eligible to file ITR-4

 
The structure of Form ITR-4 is as follows:

  • Part A: General Information

  • Part B: Computation of gross total income under the five heads of income

  • Part C: Details of deductions and computation of total taxable income

  • Schedule BP: Information on income earned from business or profession

  • Schedule 80G: Details of donations eligible for deduction under Section 80G

  • Schedule IT: Statement of advance tax and self-assessment tax payments

  • Schedule TCS: Statement of tax collected at source

  • Schedule TDS1: Details of tax deducted at source on salary income

  • Schedule TDS2: Details of tax deducted at source on income other than salary

  • Verification: Declaration and authentication of the return.

 
The following individuals need to file ITR-4:

  • Own assets or hold financial interest in any entity outside India

  • Act as a director in any company

  • Own unlisted equity shares at any time during the previous year

  • Earn income from business or profession not covered under sections 44AD, 44ADA, or 44AE (such as speculative business, commission, brokerage, etc.)

  • Have signing authority in any foreign account

  • Earn income from a source located outside India

  • Earn capital gains

  • Have income from more than one residential property

  • Win income from lotteries or horse races

  • Are subject to special tax rates under sections 115BBDA or 115BBE

  • Have income governed by the provisions of section 5A

  • Have agricultural income exceeding ₹5,000

  • Hold joint ownership in any house property or real estate

  • Report a loss under “income from other sources”

  • Claim relief under sections 90, 90A, or 91

  • Claim a deduction under section 57 (except for family pension)

  • Claim a tax credit for TDS deducted in another person’s name

 
Documents Required For ITR-4 Return Filing:
  • Bank Statement for the period starts from 1st April to 31st March.
  • PAN card details of the individual.
  • Aadhaar card of the authorized signatory
 
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