{"id":45261,"date":"2022-07-12T14:22:28","date_gmt":"2022-07-12T08:52:28","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=45261"},"modified":"2022-07-12T14:22:30","modified_gmt":"2022-07-12T08:52:30","slug":"what-is-itr-4-in-income-tax-return-filing","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/what-is-itr-4-in-income-tax-return-filing\/","title":{"rendered":"What is ITR 4 in Income Tax Return filing?"},"content":{"rendered":"\n<p>Form ITR 4, also known as Sugam, is an ITR form for those taxpayers, who have opted for the Presumptive Taxation Scheme as per sections 44AD, 44DA and 44AE of <strong>the Income Tax Act, 1961<\/strong><sup><a href=\"https:\/\/www.incometaxindia.gov.in\/pages\/acts\/income-tax-act.aspx\"><strong>[1]<\/strong><\/a><\/sup>. Still, this is subject to the business turnover limit, i.e., if the turnover exceeds Rs.2 Crore, the taxpayer must file Form ITR 3.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/what-is-itr-4-in-income-tax-return-filing\/#What_is_Presumptive_Taxation_in_Scheme\" >What is Presumptive Taxation in Scheme?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/what-is-itr-4-in-income-tax-return-filing\/#Structure_of_the_ITR_4_Form\" >Structure of the ITR 4 Form<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/what-is-itr-4-in-income-tax-return-filing\/#Who_can_file_Form_ITR_4\" >Who can file Form ITR 4?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/what-is-itr-4-in-income-tax-return-filing\/#Who_can_not_file_Form_ITR_4\" >Who can not file Form ITR 4?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/what-is-itr-4-in-income-tax-return-filing\/#Procedure_to_file_the_Form_ITR_4\" >Procedure to file the Form ITR 4<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/what-is-itr-4-in-income-tax-return-filing\/#Significant_changes_made_in_Form_ITR_4_for_Annual_Year_2021-22\" >Significant changes made in Form ITR 4 for Annual\nYear 2021-22<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/what-is-itr-4-in-income-tax-return-filing\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Presumptive_Taxation_in_Scheme\"><\/span>What is Presumptive Taxation in Scheme? <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Presumptive Taxation Scheme is\na scheme that exempts all small taxpayers from maintaining the books of\naccounts.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Features of Presumptive Taxation Scheme<\/h3>\n\n\n\n<ul><li>As per the Presumptive Taxation Scheme, there is\nno need to maintain the books of accounts.<\/li><li>Deduction of business expenses against this\nincome is not allowed.<\/li><li>The net income is ejective to be 8% of gross\ncash receipts. However, the net income is assumed to be 6% of such gross\nreceipts for payments received via digital mode.<\/li><li>The businessman has to pay 100% Advance Tax by\nthe 15<sup>th<\/sup> of March. There is no need to comply with quarterly\ninstalments of due dates of advance tax. <\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Presumptive Taxation Scheme<\/h3>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  &nbsp;\n  <\/td><td>\n  <strong>Small businessmen<\/strong>\n  <\/td><td>\n  <strong>Professionals <\/strong>\n  <\/td><td>\n  <strong>Transporters <\/strong>\n  <\/td><\/tr><tr><td>\n  <strong>Applicable Income Tax Section<\/strong>\n  <\/td><td>\n  Section 44AD\n  <\/td><td>\n  Section 44ADA\n  <\/td><td>\n  Section 44AE\n  <\/td><\/tr><tr><td>\n  <strong>Eligible business<\/strong>\n  <\/td><td>\n  The taxpayer&#8217;s income may be in any wholesaling, trading, retailing,\n  civil construction, or other business.\n  <\/td><td>\n  Legal servicesTechnical consultancyMedicalEngineering &amp; ArchitecturalInterior decoration\n  \n  \n  \n  \n  <\/td><td>\n  Entities of business involved in plying, hiring, or leasing goods\n  carriages.\n  <\/td><\/tr><tr><td>\n  <strong>Maximum turnover limit<\/strong>\n  <\/td><td>\n  Up to Rs.2 crore in a year\n  <\/td><td>\n  Annual receipts of not more than Rs.50 Lakh.\n  <\/td><td>\n  Owning not more than ten items vehicles during the year.\n  <\/td><\/tr><tr><td>\n  <strong>computation<\/strong>\n  <\/td><td>\n  shall charge 8% of total receipts &amp; electronic receipts at 6% of\n  gross turnover during the year.\n  <\/td><td>\n  50% of gross receipts. A higher income of more than 50% can be\n  declared.\n  <\/td><td>\n  7500 per vehicle every month or part thereof based on the duration for\n  which the person bought the vehicle during the year. \n  <\/td><\/tr><tr><td>\n  <strong>Deduction allowed<\/strong>\n  <\/td><td>\n  No further deductions &amp; exemptions are allowed.\n  <\/td><td>\n  No further deductions &amp; exemptions are allowed. \n  <\/td><td>\n  No further deductions &amp; exemptions are allowed (A partnership can claim\n  deduction &amp; interest to the partners from the computer income at Rs.7500\n  vehicle per month). \n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Structure_of_the_ITR_4_Form\"><\/span>Structure of the ITR 4 Form<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The ITR 4 form has been divided\ninto various parts. Every part takes details regarding different aspects of an\nindividual\u2019s tax declaration. Look at the form structure.<\/p>\n\n\n\n<ul><li><strong>Part A: <\/strong>Contains\nall the details such as name, DOB &amp; address.<\/li><li><strong>Part B:<\/strong>\nIncludes the gross income by five heard of pay such as salary, house property\nand income from other sources.<\/li><li><strong>Part C:<\/strong>\nIt is for the deductions and total taxable income<\/li><li><strong>Part D:<\/strong>\nit is for tax status and tax computations<\/li><li><strong>Schedule\nBP<\/strong> details income from Business Section 44AD, 44ADA, &amp; Section 44EA.<\/li><li><strong>Schedule 80G:<\/strong>\nInformation on donations entitled for deduction under Section 80G.<\/li><li><strong>Schedule\nTCS:<\/strong> Statement about Tax collected at source.<\/li><li><strong>Schedule\nIT: <\/strong>contains particulars of advance tax &amp; self-assessment tax payments. <\/li><li><strong>Schedule\nTDS1:<\/strong> Information of Tax Deducted at Source on Salary.<\/li><li><strong>Schedule\nTDS2:<\/strong> It has specifics of tax deducted based on income source except for\nsalary. <\/li><li><strong>Verification\nScheme.<\/strong><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_can_file_Form_ITR_4\"><\/span>Who can file Form ITR 4?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Individuals whose income comes through the following sources have to\nfile Form ITR 4:<\/strong><\/p>\n\n\n\n<ul><li>Income from business under section 44AD\/44AE.<\/li><li>Income from profession calculated under section\n44ADA.<\/li><li>Salary or pension having income up to 50 lakh\nrupees.<\/li><li>Other sources have income up to 50 lakh rupees\n(excluding the brought forward loss to be carried forward cases under this\nhead).<\/li><li>Other sources have income up to 50 lakh rupees\n(excluding winning by lottery &amp; income by horseracing).<\/li><\/ul>\n\n\n\n<p><strong><em>Note: Freelancers involved in the\nabove profession can opt for this scheme if their receipts are not more than 50\nlakhs rupees.<\/em><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_can_not_file_Form_ITR_4\"><\/span>Who can not file Form ITR 4?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Director of the Company<\/li><li>Shareholder of an Unlisted Company;<\/li><li>Total Income is above Rs.50 Lakhs;<\/li><li>An individual who has signing authority in any\naccount located outside of India.<\/li><li>Having more than 1 house property;<\/li><li>A Resident but not Ordinary Resident;<\/li><li>An individual who has an asset located outside\nof India;<\/li><li>An individual who is earning income from any\nsource outside of India.<\/li><li>Having Foreign Income &amp; Foreign Assets.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Procedure_to_file_the_Form_ITR_4\"><\/span>Procedure to file the Form ITR 4<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>You can file your ITR 4 Form either online or offline<\/strong>:<\/p>\n\n\n\n<ul><li><strong>Online\/Electronically<\/strong><\/li><li>By providing the return electronically under\ndigital signature- If you submit your Form ITR 4 electronically under digital\nsignature, and the acknowledgement will be sent to your registered email id.\nYou also have the option to download it manually from the income tax portal.<\/li><li>From transmitting the data digitally &amp; then\nsubmitting the verification of the return in <strong>Return ITR V Form<\/strong>, then you are required to sign it &amp; send it\nto the Income Tax Department\u2019s CPC office in Bangalore within 120 days of\nonline filing.<\/li><\/ul>\n\n\n\n<p><strong><em>Note: Remember that Form ITR 4 is\nan annexure-less form, I.e. you don\u2019t have to attach any documents when you\nsend this.<\/em><\/strong><\/p>\n\n\n\n<ul><li><strong>Offline: This form can be filed offline only in the following case:<\/strong><\/li><li>The individual is of the age of 80 or more;<\/li><li>The individual&#8217;s income is less than Rs.5 lakhs, and who don\u2019t have to claim a refund in the <a href=\"https:\/\/corpbiz.io\/income-tax-return-filing\"><strong>Income Tax Return<\/strong><\/a>.<\/li><li>The IT Return can filed offline in the following ways:<\/li><li>Through furnishing a return in a physical paper form.<\/li><li>By providing a bar-coded return.<\/li><\/ul>\n\n\n\n<p><strong><em>Note: The Income Tax Department\nshall issue you an acknowledgement when submitting your physical paper return.<\/em><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Significant_changes_made_in_Form_ITR_4_for_Annual_Year_2021-22\"><\/span>Significant changes made in Form ITR 4 for Annual\nYear 2021-22<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol><li>There\nare no major alterations in ITR 4 as compared to the last year.<\/li><li>Form\nITR 4 for the annual year 2021-22 has been updated with a declaration for\nchoosing between old &amp; new tax regimes. The declaration as per Part A-\ngeneral details as \u2018Are you opting for a new tax regime under Section 115AC\n(Yes\/No). If yes, please provide the date of filing of Form 10IE along with the\nacknowledgement number\u2019. <\/li><li>Schedule\nDI that was inserted for the annual year 2020-21 has been removed.<\/li><li>Part\nB- Income through other sources, drop-down like interest from saving account,\nand deposit to be provided income, quarterly breakup to be provided for\nallowing applicable relief from the interest charge for default in payment of\nadvance tax under Section 234C. <\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p> At last, the ITR-4 Form is for all those who run a small business and do not have sufficient &amp; enough resources to calculate their profit &amp; loss from their small business.  <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our Article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/income-tax-return-e-filing\/\">Income Tax return e-filing: Things you must know<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Form ITR 4, also known as Sugam, is an ITR form for those taxpayers, who have opted for the Presumptive Taxation Scheme as per sections 44AD, 44DA and 44AE of the Income Tax Act, 1961[1]. Still, this is subject to the business turnover limit, i.e., if the turnover exceeds Rs.2 Crore, the taxpayer must file [&hellip;]<\/p>\n","protected":false},"author":42,"featured_media":45264,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[10],"tags":[2497],"acf":{"service_id":"78"},"authorName":"Krishna Kumar","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/07\/MicrosoftTeams-image-62.jpg","authorDescription":"Krishna Kumar has completed BA-LLB with a specialization in constitutional Laws from ICFAI University. As a recent graduate, He has both legal research and content writing experience in various law firms. He secures good drafting skills for various legal documents in multiple fields of law.","postViews":3472,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/45261"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/42"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=45261"}],"version-history":[{"count":11,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/45261\/revisions"}],"predecessor-version":[{"id":45274,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/45261\/revisions\/45274"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/45264"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=45261"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=45261"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=45261"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}