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Eligibility to file Form ITR 4:

Individuals who have income from the following sources can file Form ITR 4:

- Income from a profession as per Section 44ADA

- Business Income under Section 44AD/Section 44AE

- Income up to Rs. 50 lakh from Salary or Pension

- Income up to Rs. 50 lakh from One house property (that does not include the brought forward loss or loss that is to be brought forward under this head)

- Income from other sources up to Rs. 50 lakh (does not include winning from lottery or horse races)

- Freelancers can also file Form ITR 4 if their income does not exceed Rs. 50 lakh.

Who is ineligible to use ITR 4 Form?

The individuals below are required to submit ITR-4,

- Disclosure of certain information is required from individuals

- Information includes holding directorship in a company

- Holding unlisted equity shares at any time during the previous year

- Having assets/financial interest in an entity outside India

- Signing authority in any account outside India

- Income from a source located outside India

- Profits from a business or profession not required to be computed under certain sections

- Capital gains

- Income from more than one house property

- Income under the head "other sources" from certain sources

- Income to be apportioned under Section 5A

- Agricultural income exceeding INR 5,000

- Brought forward or carried forward losses under any income head, including loss under "income from other sources"

ITR 4 Form - its essential elements

The highly structured Form ITR-4 includes the following key components:

- Part A: General Information

- Part B: Gross Total Income under the Five Heads of Income

- Part C: Deductions and Total Taxable Income

- Schedule BP: Details of Income from Business

- Schedule 80G: Details of Donations Entitled for Deduction under Section 80G

- Schedule IT: Statement of Payment of Advance Tax and Tax on Self-Assessment

- Schedule TCS: Statement about Tax Collected at Source

- Schedule TDS1: Statement of Tax Deducted at Source on Salary

- Schedule TDS2: Statement of Tax Deducted at Source on Income Apart from Salary

- Verification Scheme.

This comprehensive lineup ensures that all necessary information is clearly and specifically presented, ensuring that users can navigate the form with ease.

What is the procedure for submitting the ITR 4 Form?

·         ITR-4 can be submitted both online and offline.

OFFLINE MODE:

·         Those aged 80 and above or with an income below Rs.5 Lakh who do not need to claim a refund in their tax return can file the form offline.

·         ITR 4 can be filed offline through two methods: submitting a physical paper form or submitting a bar-coded return (which will receive an acknowledgement upon submission).

ONLINE MODE:

·         To file your return online, you can use your digital signature or send the data electronically and submit the verification in Form ITR-V. If your ITR-4 Form has a digital signature, an acknowledgment will be sent to your registered email address.

Characteristics of the Presumptive Taxation Scheme

·         In the Presumptive Taxation Scheme, maintaining books of accounts is not mandatory. The estimated net income is 8% of gross cash receipts, while for digital mode payments, it's assumed to be 6%.

·         However, no deductions of business expenses are allowed against this income. Be prepared to pay 100% Advance Tax by 15th March with no need to follow quarterly installments or due dates in June, September, and December.

Scheme for Presumptive Taxation

ITR 4 Form undergoes significant revisions in AY 2021 – 2022

-          No major changes made to ITR 4 Form compared to last year

-          ITR 4 now includes a declaration to choose between old and new tax regimes

-          Declaration is under Part A general information

-          Taxpayer must choose between "Yes" or "No" for new tax regime under section 115 BAC. If "Yes" is chosen, Form 101E with acknowledgment number must be filed

-          E-filing utility should provide a dropdown for income from other sources

-          Nature of income should be specified (e.g. interest from savings account, deposit)

-          Quarterly breakup of dividend income required for relief from interest charge for default in advance tax payment under section 234C

-          Schedule DI removed for AY 2020-2021