ITR-4 (Income Tax Return Form 4) is a form used by individual taxpayers in India who opt for the presumptive taxation scheme under Section 44AD, 44ADA, and 44AE of the Income Tax Act, 1961. It’s primarily for small businesses, professionals, and freelancers who have relatively straightforward income sources and want to file taxes under simplified presumptive rules.
✅ Who Should File ITR-4?
ITR-4 is meant for residents (other than not ordinarily resident) who have:
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Income from Business or Profession under the presumptive taxation scheme:
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Section 44AD – Small businesses (e.g., shopkeepers, traders).
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Section 44ADA – Professionals (e.g., doctors, lawyers, architects).
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Section 44AE – Transporters (owning up to 10 goods carriages).
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Total income up to ₹50 lakh (including presumptive income, salary/pension, house property, and other sources like interest).
❌ Who Should NOT Use ITR-4?
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Individuals with income exceeding ₹50 lakh.
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Those having foreign assets or foreign income.
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If you’re a Director in a company or have unlisted equity shares.
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If you’re claiming capital gains, or have income from more than one house property.
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If you’re not eligible for presumptive taxation.
📋 Key Sections in ITR-4
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Part A – General Information: Basic taxpayer details.
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Part B – Gross Total Income: Summary of income from various sources.
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Part C – Deductions and Total Taxable Income: Deductions under Chapter VI-A (e.g., 80C, 80D).
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Part D – Tax Computation and Tax Status
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Schedule BP: Details of presumptive business/professional income.
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Verification: Self-declaration and digital signature (if applicable).
🕒 Filing Due Date
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Usually 31st July of the assessment year (unless extended by the government).
🌐 How to File?
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Online through the Income Tax e-Filing Portal https://incometax.gov.in
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Can be filed directly by the assessee or through a chartered accountant.
If you’re a small business owner or a professional with simple income streams and want to avoid maintaining detailed books of accounts, ITR-4 is likely the best and easiest form for you.
Please feel free to reach out to us if you need any assistance.