ITR-4 Form - Sections and Essential Terms for Filing Income Tax Return

This page contains information about using and filling the ITR-4 Form which is designed for the HUFs who generate income from a proprietary business or profession. This page contains filling instructions, the explanation for each section of the form and the related terminologies.

Defining ITR-4 Form

ITR-4 is applicable to the individual and HUFs who earn income from a proprietary business or profession. If the presumptive method of taxation will applicable on your business then use ITR-4S. ITR-4S is applicable when the total turnover amount is less than INR 1CR. But if your presumptive annual turnover is over INR 1CR then you need to use ITR-4 to file income tax return. The due date for filing this form is 31st July but audits are applicable then the due date will be 30th September.

itr-3 form

Eligibility to file income tax return with ITR-4 Form

The ITR-4 Form can be used to prepare income tax return by the individual and HUFs who meets the following conditions:

  • Earn from business or profession registered as a proprietary firm
  • Have Salary/Pension generated income
  • Have House Property generated income
  • Generates Income from Other Sources
  • Have presumptive income with a Turnover/Gross Receipts exceeding INR 1CR

The Sections of ITR-4 Form

The form is divided into 2 parts, verification, and 35 schedules

The parts are:

  • Part A:
  • Part A-GEN: General details about taxpayer and business nature
  • Part A-BS: details as mentioned in balance sheet as of March 31st of the proprietary business or profession
  • Part A-P&L: Profit and Loss statement for the current financial year
  • Part A-OI: Other Information such as audits if applicable as under Section 44AB
  • Part A-QD: Quantitative Details if audits are not applicable as under Section 44AB
  • Part B: details of the total income and tax calculation for the taxable income
  • Verification

The 35 schedules are:

  • Schedule-S: calculation of income under the Salaries head
  • Schedule-HP: head of income from house property
  • Schedule-DPM: calculation of depreciation on plant and machinery
  • Schedule DOA: calculation of depreciation on other assets
  • Schedule DEP: calculation of depreciation on all the assets
  • Schedule DCG: calculation of deemed capital gains generated from selling depreciable assets
  • Schedule ESR: details of deductions claimed under section 35 against expenditure on scientific research
  • Schedule-CG: calculation of income under the “Capital gains” head
  • Schedule-OS: calculation of income from other sources
  • Schedule-CYLA: details of income after setting off the losses from current year
  • Schedule BFLA: details of income after setting off the unabsorbed losses brought forwarded from last financials years
  • Schedule CFL: details of losses that will be carry forwarded to coming years
  • Schedule- UD: details of unabsorbed depreciation
  • Schedule- 10A: calculation of deduction under section 10A.
  • Schedule- 10AA: calculation of deduction under section 10AA.
  • Schedule- 10B: calculation of deduction under section 10B.
  • Schedule- 10BA: calculation of deduction under section 10BA.
  • Schedule- 80G: details of donations eligible for deduction under section 80G
  • Schedule- 80IA: calculation of deduction under section 80IA.
  • Schedule- 80IB: calculation of deduction under section 80IB.
  • Schedule- 80IC/ 80-IE: calculation of deduction under section 80IC/ 80-IE.
  • Schedule VIA: details of deductions claimed from total income under Chapter VIA.
  • Schedule SPI: details of spouse/ minor child/ son’s wife or other family member’s income that is included in your income in Schedules-HP, BP, CG and OS
  • Schedule SI: details of income taxable at special rates
  • Schedule-IF: details of partnership firms in which you are a partner
  • Schedule EI: details of income excluded or exempted from total income
  • Schedule IT: details of advance-tax payment and tax on self-assessment
  • Schedule TDS1: details of tax deducted at source applicable on salary
  • Schedule TDS2: details of tax deducted at source applicable on income except for salary
  • Schedule-TCS: Statement of tax collected at source.
  • Schedule TR: details of tax relief claimed under section 90 / 90A / 91
  • Schedule FA: details of your Foreign Assets

Filling the ITR-4 Form

Filling instructions for ITR-4

  • write “---NA---" for the schedules not applicable to you
  • write “NA" for the items is not applicable to you
  • use “Nil" for the figures that have a nil value
  • use “-" sign for the negative figures except for anything that is pre-loaded in the form.
  • All figures must be rounded off to the nearest one rupee figure.
  • All figures must be rounded off to the nearest multiple of ten rupees for total income/ loss and tax payable.
  • For employer category section, tick on Government if you are working for central/state government, otherwise tick on PSU.

Filling Sequence for parts and schedules

The best sequence to follow while filing ITR-4 is:

  • Part A
  • All the schedules
  • Part B
  • Verification

Filing ITR-4 Form

ITR-4 can be submitted via the online or offline method. However, there are certain conditions under which certain taxpayers are required to submit it online on a compulsory basis.

Those category of taxpayers are:

  • Whose annual income is over INR 5 lakhs
  • Those who have foreign assets
  • Those who claim relief under section 90 / 90A / 91 in Schedule FSI and Schedule TR

Online/Electronically:

  • By filing online return using digital signature
  • By electronically transmitting the data
  • Sending the Form ITR-V to CPC Bangalore

Two copies of the ITR-V should be printed and one need to be signed accordingly and sent to the CPC office in Bangalore. You must keep the other one for records.

Offline:

  • File income tax return with a physical paper form
  • File a bar-coded income tax return

In the case of physical filing, an acknowledgment will be issued to you in paper form at the time of submitting ITR-4.

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