ITR 4: Meaning, Form Filling Process & Eligibility

The Indian Income Tax Act of 1961 mandates separate income tax return forms for the different section of taxpayers. Below is the guide to understanding the ITR 4 form in detail:

Income tax return form ITR 4 is for the section of taxpayers, who have chosen presumptive income scheme under Section 44AD , Section 44ADA and Section 44AE of the Indian Income Tax Act 1961. However, if the turnover of the business for taxpayers in the above category is more than Rs 2 crores, they need to file their Income Tax Return with ITR 3 form.

ITR-4 form can be filed by HUF/partnership firms/individuals whose total income includes income from below mentioned sources for a single financial year:

• Income from the business under Section 44AD or 44AE
• Amount received as salary/pension up to Rs 50 Lakh
• Income from the profession as per Section 44ADA
• Payment received from a single house property up to Rs 50 Lakh (This does not include carried forward loss from the previous year)
• Income from other sources up to Rs 50 Lakh (This does not include income from horse races or winning amount from the lottery)

There are exemptions to who can use this form. Let’s find out the criteria:

• Above mentioned section of Taxpayers with above income sources are eligible to file ITR 4 only up to Rs 50 lakh. They are not required to file ITR 4 form if the income exceeds Rs 50 Lakhs.
• As an individual, if you are the director of the company and have invested in equity shares of an unlisted company, then you are not eligible to use this form.

There are 2 ways to file an income tax return using ITR 4 form: offline and online Offline process is as follows There are certain limitations to filling an offline return form. Here are they:

• The offline form can only be filled if the taxpayer is 80 years of age or more
• Individuals with income less than that of Rs 5 lakh in a year
• Individuals who do not have to claim a refund from the Income Tax department

To file an offline return, you will have to submit a physical return form to the Income Tax department. The online process is as follows

• Visit the e-filing website www.incometaxindiaefiling.gov.in
• Fill the form electronically using a digital signature
• Transfer the data electronically then download and print the ITR IV form for verification purposes
• Sign the verification form and post it to the Income Tax Department’s CPC office in Bangalore within 120 days of e-filing

Note that no documents are required to be attached with ITR 4 form.Ready to make the most of your money? Start your tax planning journey now!

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.