ITR-4 Return Filing

ITR-4 is a tax form used by taxpayers in India who have opted for the presumptive income scheme under Section 44AD, Section 44ADA or Section 44AE of the Income Tax Act, 1961.

This form is applicable for individuals, Hindu Undivided Families (HUFs) and firms (other than LLP) who have a total income of up to Rs. 50 lakh in a financial year and have income from business or profession.

The ITR-4 form requires taxpayers to provide information about their total income, deductions claimed, tax paid, and advance tax paid during the financial year. The form must be filed with the Income Tax Department by July 31 of the assessment year for which the return is being filed.

It is important to note that taxpayers who have income from sources other than business or profession, such as capital gains or rental income, are not eligible to use ITR-4 and must use the appropriate form for their respective income sources.

The Presumptive Taxation Scheme is a simplified tax regime provided by the Income Tax Act, 1961, under Sections 44AD, 44ADA, and 44AE. It provides certain benefits to eligible small taxpayers, such as individuals, Hindu Undivided Families (HUFs), and firms (excluding Limited Liability Partnerships or LLPs), engaged in small businesses or professions, who find it difficult to maintain proper books of accounts or undergo an audit.

Under the Presumptive Taxation Scheme, eligible taxpayers can declare their income at a prescribed rate, which is deemed to be their income for the year. This is based on the nature of their business or profession and is subject to certain limits. The scheme provides a simplified method of calculating tax liability based on the presumptive income declared by the taxpayer.

Here is a brief overview of the three sections under which the scheme operates:

1. Section 44AD: This section applies to taxpayers who are engaged in the business of trading or manufacturing of goods. Under this section, eligible taxpayers can declare their income at 8% of their total turnover or gross receipts. The maximum limit of total turnover or gross receipts for the financial year is Rs. 2 crores. Such taxpayers are not required to maintain regular books of accounts or undergo an audit.

2. Section 44ADA: This section applies to taxpayers who are engaged in a specified profession, such as lawyers, doctors, engineers, architects, and other specified professionals. Under this section, eligible taxpayers can declare their income at 50% of their gross receipts or income. The maximum limit of gross receipts or income for the financial year is Rs. 50 lakhs. Such taxpayers are not required to maintain regular books of accounts or undergo an audit.

3. Section 44AE: This section applies to taxpayers who are engaged in the business of plying, hiring, or leasing goods carriages. Under this section, eligible taxpayers can declare their income at a prescribed rate, which varies depending on the weight of the vehicle used for business. Such taxpayers are not required to maintain regular books of accounts or undergo an audit.

Taxpayers who opt for the Presumptive Taxation Scheme do not have to maintain detailed accounting records or undergo an audit, which reduces the compliance burden and saves time and resources. Additionally, taxpayers can claim deductions up to 50% of the presumptive income towards expenses such as rent, salary, and interest payments. However, taxpayers who are eligible to file their tax returns under any other section of the Income Tax Act, 1961, must do so under that section and not under the Presumptive Taxation Scheme.

The process for filing the ITR 4 form online and offline differs in several ways:

Filing ITR 4 Form Online:

1. The first step to file ITR 4 form online is to register on the Income Tax Department’s e-filing website using your Permanent Account Number (PAN) and other necessary details.
2. After registration, log in to your account and select the option to file the ITR 4 form.
3. Enter the required details in the online form, including personal details, income details, and deductions claimed.
4. Verify the information provided in the form and click on the submit button.
5. After submitting the form, the taxpayer must verify the return by either generating an Electronic Verification Code (EVC) or by using Aadhaar-based authentication.
6. Once the verification process is complete, the ITR-V form will be generated. The taxpayer should download and save the ITR-V form for future reference.

Filing ITR 4 Form Offline:

1. To file ITR 4 form offline, the taxpayer needs to download the form from the Income Tax Department’s official website or collect a physical copy from the Income Tax Department’s office.
2. Fill in the required details in the form, including personal details, income details, and deductions claimed.
3. Verify the information provided in the form, sign the declaration, and attach all the necessary documents.
4. Submit the physical copy of the form along with the necessary documents to the Income Tax Department’s office, either by post or in person.
5. After submitting the form, the taxpayer should receive an acknowledgement receipt. The taxpayer must keep this receipt safe as proof of having filed the tax return.

In summary, the process of filing ITR 4 form online involves registering on the e-filing website, entering the required details in the online form, and verifying the return through EVC or Aadhaar-based authentication. On the other hand, the process of filing ITR 4 form offline involves downloading the form or collecting it physically, filling in the required details, attaching necessary documents, and submitting the form to the Income Tax Department’s office.

How to file ITR 4 Form

The process for filing the ITR 4 form online and offline differs in several ways:

Filing ITR 4 Form Online:

1. The first step to file ITR 4 form online is to register on the Income Tax Department’s e-filing website using your Permanent Account Number (PAN) and other necessary details.
2. After registration, log in to your account and select the option to file the ITR 4 form.
3. Enter the required details in the online form, including personal details, income details, and deductions claimed.
4. Verify the information provided in the form and click on the submit button.
5. After submitting the form, the taxpayer must verify the return by either generating an Electronic Verification Code (EVC) or by using Aadhaar-based authentication.
6. Once the verification process is complete, the ITR-V form will be generated. The taxpayer should download and save the ITR-V form for future reference.

Filing ITR 4 Form Offline:

1. To file ITR 4 form offline, the taxpayer needs to download the form from the Income Tax Department’s official website or collect a physical copy from the Income Tax Department’s office.
2. Fill in the required details in the form, including personal details, income details, and deductions claimed.
3. Verify the information provided in the form, sign the declaration, and attach all the necessary documents.
4. Submit the physical copy of the form along with the necessary documents to the Income Tax Department’s office, either by post or in person.
5. After submitting the form, the taxpayer should receive an acknowledgement receipt. The taxpayer must keep this receipt safe as proof of having filed the tax return.

In summary, the process of filing ITR 4 form online involves registering on the e-filing website, entering the required details in the online form, and verifying the return through EVC or Aadhaar-based authentication. On the other hand, the process of filing ITR 4 form offline involves downloading the form or collecting it physically, filling in the required details, attaching necessary documents, and submitting the form to the Income Tax Department’s office.