Article
Who can file ITR-4?
Taxpayers who choose to file their Income Tax Return under the Presumptive Income Scheme, under Section 44AD, Section 44ADA and Section 44AE of the Income Tax Act, 1961, are supposed to file ITR-4. However, if the annual turnover of a business exceeds Rs. 2 crores, then it will have to file ITR-3.
Who can file Form ITR-4?
ITR-4 is filed by the following taxpayers: -
- Business income which is calculated in reference to special provisions stated in Section 44AD and 44AE of the Income Tax Act, 1961.
- Income from a profession wherein the income is computed in reference to the special provisions mentioned in Section 44ADA.
- Income from salary or pension.
- Income derived from one House Property (except in cases where there is carried forward loss or a loss to be carried forward under House Property).
- Income from other sources excluding winnings from lottery and income from betting on Race Horses).
Who cannot file ITR-4?
The following cannot file Form ITR-4: –
- Income from more than one House Properties or where there is loss carried forward or supposed to be carried forward under this head.
- Income from lottery winnings or race horses.
- Any income under ‘Capital Gains’. For instance, short-term or long-term capital gains from sale of house, plot, shares, etc.
- Income that is taxed under Section 115BBDA of the Income Tax Act, 1961.
- Income stated in Section 115BBE of the Act.
- Any income derived from agriculture exceeding Rs.5,000.
- Income derived from an agency business or income in the form of commission or brokerage.
- Income derived from an agency business or income in the form of commission or brokerage.
- Income incurred from Speculative Business and other special incomes.
- As per Section 90, 90A or 91 of the Income Tax Act, 1961, any individual who is claiming relief on any foreign tax paid.
- A resident possessing an asset including financial interest in an entity located outside India or who is a signing authority for an account outside India.
- A resident deriving any income from any source outside India.
Who does not need to file Form ITR-4?
Form ITR-4 is not compulsory to be filed by an individual under the following circumstances: –
- He/she maintains all books of accounts and other documents stated in Section 44AA of the Income Tax Act, 1961 in regards to business or profession.
- He/she gets his accounts audited regularly and collects a report for such audits as required under Section 44AB of the Income Tax Act, 1961 in regards to the business or profession.
