ITR 4 is an Income Tax Return form for individuals and HUFs who have income from proprietary business or are carrying on a profession. A shopkeeper, a doctor, a tutor, a retailer, a wholesaler, an insurance agent, interior decorator or fashion designer, everyone can file their tax return in ITR 4.
If the requirements of an audit are applicable, the due date of filing of return is 30th September. Otherwise, usually, the due date of filing of return for non-audit cases is 31st July.
ITR 4S is a special case ITR, applicable for business where income is calculated on ‘presumptive method’. In the presumptive method, lets you report your income as 8% of your gross receipts (as per Section 44AD of the Income Tax Act) or as ₹7,500 per month for each if you are in the business of plying, leasing or hiring trucks (as per Section 44AE). You do not have to maintain accounting records of your business and advance tax rules do not apply to you. You need to meet the following conditions to file ITR 4S.
- Your gross receipts or turnover must be less than ₹1 crore.
- You must be resident of India.
- You may be an individual, an HUF or a partnership firm but not a company.
Who is eligible to file using the ITR 4 Form
Assessees who are eligible to file using the ITR 4 form are:
- Carrying on business or profession.
- Eligible for Presumptive Business Income but where Turnover/Gross Receipts exceeds ₹1 crore.
- The return may include Salary/Pension.
- Earn Income from House Property.
- Earn Income from Other Sources.
To download ITR 4 click here.
Here are a few general guidelines to keep in mind while filing your ITR 4 form
- If any schedule is not applicable to you, strike it out and write –NA– across it.
- If any item is not applicable to you, write NA against it.
- Indicate nil figures by “Nil”.
- Put a “-” sign before negative figures.
- All figures are to be rounded off to the nearest one rupee except figure for total income/loss and tax payable. Those are to be rounded off to the nearest multiple of ten.
- If you are an individual, under the Employer Category you should tick Government if you are a Central/State Government employee. You should tick PSU if you work in a public sector company of the Central/State Government.
How to file ITR 4 Form?
You can submit your ITR 4 either online or offline. It is mandatory to file Income Tax Returns electronically for the following assesses:
- Those who earn more than ₹5 lakhs per year.
- Those having any assets outside India (including financial interest in any entity) or signing authority in any account outside India.
- Those claiming relief under Section 90/90A/91 to whom Schedule FSI and Schedule TR apply.
- By furnishing a return in a physical paper form.
- By furnishing a bar-coded return.
The Income Tax Department will issue you an acknowledgement at the time of submission of your physical paper return.
- By furnishing the return electronically under digital signature.
- By transmitting the data electronically and then submitting the verification of the return in Return Form ITR-V
If you submit your ITR 4 Form electronically under digital signature, the acknowledgement will be sent to your registered email id. You can also choose to download it manually from the income tax website. You are then required to sign it and send it to the Income Tax Department’s CPC office in Bangalore within 120 days of e-filing.