Description
ITR-4 form filling
Form ITR 4 is filed by the taxpayers who have opted for the Presumptive Taxation Scheme under Section 44D, 44DA, 44AE of the Income Tax Act,1961. But this is subject to the business turnover limit i.e in case if the turnover is exceeding Rs.2 crore then the taxpayer is required to file ITR 3 Form.
What is Presumptive Taxation in Scheme?
Presumptive Taxation Scheme is a scheme that exempts small taxpayers from maintaining the books of accounts.
What is the process of filing Form ITR-4?
ITR-4 can be submitted both online and offline as well.
Offline
The following individuals can file offline form:
Individuals at the age of 80 years or more
The individual’s income is less than Rs.5 Lakh and he does not have to claim a refund in the income tax return
ITR 4 can be filed offline :
By furnishing a return in a physical paper form
By furnishing a bar-coded return (An acknowledgment will be issued at the time of submission of the physical paper return)
Online/Electronically
By furnishing the return digitally using the digital signature.
By transmitting the data electronically and then submitting the verification of the return made in Form ITR-V.
If the ITR-4 Form under digital signature then an acknowledgment will be sent to the registered email id.
Who can file Form ITR-4?
- Business Income under Section 44AD/Section 44AE
- Income from profession as per Section 44ADA
- Income up to INR 50 lakhs from Salary/Pension
- Income up to INR 50 lakhs from One House Property (does not include brought forward loss or loss to be brought forward under this head)
- Income from other sources up to INR 50 lakhs (does not include winning from lottery or horse races)
- Form ITR-4 can also be filed by freelancers professionals in case their income does not exceed INR 50 lakhs.
Who is not eligible to file Form ITR-4?
- Holds Directorship in a company
- Holds any unlisted equity shares at any time during the previous year
- Has assets/financial interest in an entity outside India
- Has signing authority in any account outside India
- Has income from a source located outside India
- Has profits from a business or profession which is not required to be computed under sections 44AD, 44ADA, or 44AE, like income from a speculative business, commission, brokerage, etc.
- Makes Capital Gains
- Has income from more than one house property
- Has income under the head “other sources” from winning the lottery, horse races, income taxable at special rates u/s 115BBDA or 115BBE
- Has income which is to be apportioned under the provisions of Section 5A
- Has agricultural income exceeding INR 5,000
- Has any brought forward loss or loss which is to be carried forward under any income head
- Has loss under “income from other sources”
- Has a claim of relief under Sections 90, 90A or 91
- Has any deduction claim under Section 57 (except deduction relating to family pension)
- Has claim of tax credit which has been deducted at source in the hands of another person
- Has joint ownership in house property (inserted in AY 20-21)
Presumptive Taxation Scheme
What are the features of the presumptive taxation scheme?
- Under presumptive taxation scheme, there is no requirement to maintain the books of accounts.
- The net income is estimated to be 8% of gross cash receipts. However, for payments received via digital mode, the net income is assumed to be 6% of such gross receipts.
- Deduction of any business expense against this income is not allowed.
- The business owner has to pay 100% Advance Tax by the 15th of March. There is no need to comply with quarterly installments of due dates of Advance tax (i.e. in June, Sep,dec)
ITR-4 Plans
All Inclusive Pricing – No Hidden Fee
Income Tax return filing for a taxpayer with taxable income of less than Rs 10 Lakhs.
Income Tax return filing for a taxpayer with taxable income of less than Rs 25 Lakhs.
Income Tax return filing for a taxpayer with taxable income of more than Rs 25 Lakhs.
General questions
Yes, If the conditions of 8% or 6% profit or more is not declared then tax audit has to be done.
No, they aren’t as the assessee opts for presumptive income he does not have to maintain books of accounts.
Yes 8% and 6% are the minimum limit conditions.
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