The ITR 4 Form is the form which is applicable to those taxpayers who have chosen for the presumptive income scheme as per Section 44AD, Section 44ADA and Section 44AE of the Income Tax.

If the turnover of the business mentioned above more than  Rs 2 Crores, the taxpayer will have to file ITR 3.

Eligibility to file ITR 4 Form

  • professional carrying out profession mentioned under section 44AA such as a doctor can choose the scheme under the section 44ADA if his gross receipts are not more than Rs 50 lakhs and can declare 50% of gross receipts as his income. Similarly, an Engineer, Film Artist, Person engaged in the Accountancy profession, Interior decoration, Technical consultancy can also opt for this scheme. Freelancers engaged in the any of the above profession can also opt for this scheme if their gross receipts are not more than Rs 50 lakhs.
  • However, if you are earning income from an eligible Business, you can choose scheme under section 44AD if your gross receipts from the business are less than Rs 2 crore.
  • A person engaged in the business of goods transportation and owns not more than 10 goods carriage and has opted for presumptive taxation scheme under Section 44AE.
  • A person having Income from Salary/ Pension.
  • A person having Income from One House Property.
  • A person having Income from Other Sources (not including income from Winning from Lottery and Income from Race Horses)

Not Eligible to file ITR 4

  • Income from Winnings from lottery or income from Race horses.
  • Income under the head Capital Gains.
  • Income from dividends received from domestic companies.
  • Agricultural income in excess of ₹5,000.
  • Income from Speculative Business and other special incomes.
  • Income from an agency business or income in the nature of commission or brokerage.
  • A person claiming relief under Double Taxation Scheme.
  • Income from asset located outside India.
  • Income from outside India.

Structure of ITR 4 for AY 2017-18

ITR 4  is divided into:

  • Part A: General Information
  • Part B: Gross total income from the five heads of income
  • Part C: Deduction and total taxable income
  • Part D: Tax calculation and tax status
  • Verification & signatures on the return

Financial Particulars of the Business

  • Schedule AL: Asset and liability at the end of year
  • Schedule IT: Statement of payment of advance tax and tax on self-assessment.
  • Schedule-TCS: Statement of tax collected at source.
  • Schedule TDS1: Statement of tax deducted at source on salary.
  • Schedule TDS2: Statement of tax deducted at source on income other than salary.
  • Supplementary Schedule TDS1, TDS2, IT, TCS

Modes of  Filing ITR 4

An individual can submit your ITR 4 Form either online or offline. That individual is of the age of 80 years or more and income of the individual is less than 5 lakhs can be filed the return offline. The income tax department will release the acknowledgment at the time of submission of return and if you filed the return online then the acknowledgment will be sent to your registered email id and within 120 days of e-filing, you have to sign and send it to the Income Tax Department’s CPC office in Bangalore.

For any help on ITR Filing feel free to consult the tax experts at LegalRaasta. You can file ITR yourself via our ITR software or get CA’s help on filing income tax return. You can also use the option of Business ReturnBulk Return or Revised Return Filing.