Under the direct tax regime in India, all individuals having a certain level of annual income need to pay taxes and file Income Tax Return (ITR). To make ITR filing convenient, the Income Tax Department has provided 7 ITR forms.

 

Out of these, ITR 3 and ITR 4 SUGAM are required to be filled by individuals and HUFs earning income from a business or profession. However, ITR 4 form is specifically for those taxpayers opting for the presumptive taxation scheme under Sections 44D, 44DA, and 44AE.

 

Read on to know more about ITR 4, its applicability, and how to file ITR 4 online.

What is ITR-4 Form

Those taxpayers who have opted for a presumptive taxation scheme are required to file ITR 4 form. However, if the annual turnover of any taxpayer is more than ₹2 Crores, they will have to ITR 3.

 

As per the Income Tax Act of 1961, businesses are required to maintain books of accounts. However, for smaller businesses, this can be a tedious task. To provide relief to such taxpayers, Sections 44D, 44DA, and 44AE of the Income Tax Act allow taxpayers to declare income at a prescribed limit. 

 

This saves them from maintaining accounts and getting them audited. The taxpayers can pay taxes on their prescribed income at the applicable tax rate. 

What is the ITR 4 Applicability?

Before you go on to find out how to file ITR 4, it is advisable to check if it is applicable to you. 

 

Here are the income requirements to qualify for the ITR 4 applicability:

  • Business income of up to ₹2 Crores calculated as per the presumptive income scheme under 44AD or 44AE 

  • Income from profession calculated as presumptive income under Section 44ADA

  • Income from salary/pension, house property, or other sources of up to ₹50 Lakhs

Significant Changes in Form ITR 4 for 2023-24

Here are a few changes incorporated in the new ITR 4 for this financial year 2023-24:

  • Addition of a few extra questions to understand if you have opted out of the New Tax Regime

  • Addition of a new schedule VDA to report if you are generating any income from cryptocurrencies

  • Introduction of a new ‘Trading Account’ section to report your income generated from intraday trading transactions

  • Minor modifications in balance sheet reporting

  • Foreign investors to disclose their SEBI registration number

How to File ITR 4 Online?

You can carry out your ITR 4 filing either through online or offline methods. If you are thinking about how to file ITR 4, you can submit this form, provided with a bar-coded return, to the Income Tax Department. 

 

Alternatively, you can also opt for a more convenient online method. For that, you will have to go to the e-Filing portal of the IT Department. Here is how to file ITR 4 online in simple steps:

  • Log in to the portal using your credentials

  • Go to the ‘e-File’ option in the menu at the top of the dashboard

  • Select the ‘Income Tax Return’ and then ‘File Income Tax Return’ options

  • Choose the assessment year along with the mode of your submission

  • Select ITR 4 from the ‘ITR Form Number’ box 

  • Click the ‘Continue’ button to proceed further 

  • You will now be navigated to a new page where your PAN details will be auto-generated

  • Review these details and edit them if you find any inaccuracies

  • Continue after reviewing your PAN details to fill out the ITR 4 form

  • Enter accurate information in all mandatory and applicable fields

  • If you wish to opt for the new tax regime, add the Acknowledgement Number and the date of filing your Form 10IE

  • Click on ‘Preview Return’ to check if all the information added is correct

  • Hit the submit button to complete your ITR 4 filing

 

In conclusion, ITR 4 is applicable to resident individuals and HUFs involved in business and profession. However, they are exempt from filing ITR 3 and maintaining account books under relevant sections of the Income Tax Act. 

 

You can file your Income Tax Return using ITR 4 form online or offline. Online filing is more convenient, and you can complete it in a few simple steps. The online facility for ITR 4 filing is available on the e-Filing portal of the Income Tax Department.

FAQs on the ITR 4 Form

What is the difference between ITR 3 and ITR 4?

Both ITR 3 and ITR 4 are required to be filed by resident individuals and HUFs. In addition, those earning income as profits and gains from business or profession can file both these forms. 


However, there are certain differences between the two. ITR 4 can only be filed by those taxpayers who have opted for the presumptive taxation scheme. This facility is for small businesses having an annual turnover of up to ₹2 Crores. It exempts such businesses and professionals from maintaining account books and filing ITR 3. 

What are ITR 4 filing charges?

There are no ITR 4 filing charges as the filing Income Tax Return (ITR) on the e-Facility portal is absolutely free. 

Can I switch from ITR 1 to ITR 4?

Yes, you can switch from ITR 1 to ITR 4, provided you meet certain conditions as per the Income Tax Act.

Can doctors file ITR 4?

Yes, professionals like doctors can file ITR 4 by opting for the presumptive taxation scheme under Section 44ADA of the Income Tax Act.

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