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What is ITR4 Form? | How to fill ITR-4 Form?

What is ITR 4?

Income Tax Return Form 4, also called SUGAM, is filed by the taxpayers who have opted for Presumptive tax assessment scheme under Section 44AD, Section 44DA and Section 44AE of the Income Tax Act, 1961. ITR 4 persons can file by an individual HUF as well as partnership firms. However, if the annual turnover of a business registered under the presumptive tax assessment scheme is more than Rs.2 crore, the taxpayer is required to file ITR-3.

Who needs to file ITR-4?

According to the existing rules of the Income Tax Act, 1961, individuals / HUFs / partnership firms with any of the following income are required to file ITR Form 4:

1) Business income calculated under section 44AD or section 44AE

2) Income from business received under section 44ADA

3) Salary / Pension

4) Income from a household property (excluding loss to be taken forward or loss to be carried forward)

5) Income from other sources (excluding income from other forms of legal gambling such as winning the lottery or betting on a horse)

Who is not required to file ITR-4?

The following categories of individuals are not required to file ITR-4 despite having business income:

• The taxpayer who maintains all the books of accounts under section 44AA in respect of their business or occupation.

• If the assessee audits his / her account and obtains the required audit report under section 44AB in respect of business or occupation.

What is the structure of ITR 4?

ITR 4 consists of the following parts:

Part A: General Assessment of Tax Assessor

Part B: Total Gross Income (Income and Deduction under various headings)

Part C: Deductions and taxable gross income

Part D: Tax calculation and tax status

Verification and signature on the return

Schedule BP: Details of business income

Schedule AL: Assets and liabilities at the end of the year (only applicable when total income exceeds Rs. 50 lakhs)

Schedule IT: Details of advance tax payment

Schedule TCS: Details of tax accrued at source

Schedule TDS1: Details of a tax deduction on salary source

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

It should be noted that after the implementation of GST, changes have been made accordingly in ITR Form 4 from AY 2018-19 to include GST details.

What is the benefit of the Presumptive taxation scheme under section 44AD?

ITR Form 4 is submitted by the taxpayers who file their income tax returns under Section 44AD of the Income-tax Act, 1961 and avail the benefit of the Presumptive taxation scheme. The Presumptive taxation scheme under section 44AD facilitates small businesses by saving them from the tedious task of maintaining books and accounts. Businesses registered under section 44AD are not required to maintain regular accounts. They can file tax at the prescribed rate while filing income tax returns using ITR4.

It is hoped that this article will help you to file an income tax return under the presumptive scheme. If you have any questions you can ask our legal experts by email at santoshpatil@alltaxfin.com or call them on 9769201316

It is hoped that this article will help you to file an income tax return under the presumptive scheme. If you have any questions you can ask our legal experts by email at santoshpatil@alltaxfin.com or call them on 9769201316

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Santosh Patil

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