Income tax return form ITR-4 is applicable to small business owners and professionals who wants to declare their income under the presumptive taxation scheme.
In Income tax we have three sections as per which you can declare your income under the presumptive taxation scheme;
- Section 44AD,
- Section 44ADA, and
- Section 44AE.
ITR-4, which is also known as SUGAM, is a very simple income tax return form compared to form ITR-3.
Business owners or professionals opting for presumptive taxation are not required to file any details related to profit and loss account and balance sheet in form ITR-4.
Who can file income tax return form ITR-4?
If you are drawing salary from a company in addition to income from business or profession, then you can file income tax return form ITR-4.
Following individuals can take benefit of filing this form ITR-4;
- freelancers,
- writers,
- bloggers,
- vloggers,
- IT professionals,
- Chartered accountants,
- Doctors,
- Lawyers,
- Small business owners, and
- Goods carrier.
In case section 44AD, section 44ADA and section 44AE is not applicable, then you can not file ITR-4. Only option left out for you is filing of income tax return form ITR-3.
Who can’t file Income Tax Return Form ITR-4?
Following persons can not file income tax return form ITR-4;
- When an individual’s income from salary, house property or other sources is above Rs 50,00,000.
- When an individual is a director of a company.
- When an individual is holding equity shares in a private limited company.
- Whose accounts are required to be audited under section 44AB of the income tax act, 1961.
- Who is a resident but not ordinarily residents (RNOR)
- Non-residents
- If you have deferred tax on ESOP received from employer being an eligible start‐up
- If you have agricultural income of more than Rs 5,000
You have many private intermediaries offering income tax return filing service through their sites. You never know how your personal information will be secured with them.
Our suggestion is to use the income tax department’s own e-filing site to file the return forms. They have very well developed their site, you will not have any issues in filing.
