ITR-4 Form Filing
The ITR-4 form can be filed by taxpayers enrolled under the presumptive taxation scheme. To be enrolled in the scheme, the taxpayer must have less than Rs. 2 crores of business income or less than Rs. 50 lakhs of professional income.Form ITR 4 is filed by the taxpayers who have opted for the Presumptive Taxation Scheme under Sections 44D, 44DA, and 44AE of the Income Tax Act of 1961. But this is subject to the business turnover limit, i.e., if the turnover exceeds Rs. 2 crore, the taxpayer is required to file an ITR-3 form.
Who is Eligible to file Form ITR 4?
Individuals whose income comes from the following sources have to file Form ITR-4:
business income under Section 44AD/Section 44AE.
income from a profession as per Section 44ADA.
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)
Other sources of income up to Rs. 50 lakh (excludes winnings from lotteries or horse races).
If the income is less than Rs. 50 lakh, freelancers can also file Form ITR 4.
Presumptive Taxation Scheme
What are the features of the presumed taxation scheme?
Under the presumptive taxation scheme, there is no requirement to maintain the books of accounts.
The net income is estimated to be 8% of gross cash receipts. However, for payments received via digital mode, the net income is assumed to be 6% of such gross receipts.
The deduction of any business expense against this income is not allowed.
The business owner has to pay 100% advance tax by the 15th of March. There is no need to adhere to the advance tax due dates in quarterly instalments (i.e., June, September, and December).
Documents Required for Business Tax Return Filing ITR-4 return filing
Bank Statement
PAN Card (PAN card details of the individual)
Aadhar Card (Aadhaar card of the authorised signatory)