ITR FOR BUSINESS & PROFESSION
BASIC PLAN
ELIGIBILITY FOR ITR-4 FORM
ITR-4 can be filed by individuals whose:
1) Income is Less than Rs 2 Crores more of Business Income or Less than Rs 50 Lakhs of Professional Income.
2) Income from (both tax audit or not audit cases) for –
o From Business and Profession computed under presumptive taxation scheme u/s 44AD*, 44ADA** or 44AE***.
3) Income is from salary, One house rent, family pension income, agricultural income up-to Rs 5000 and other sources, which include:
o Interest from Savings Accounts
o Interest from Deposits (Bank / Post Office / Cooperative Society)
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FILE ITR-4 FORM FOR:
- ITR-4 Form is the Income Tax Return form for the taxpayers who opt for a presumptive income scheme under Section 44AD, 44ADA, 44AE.
- To enroll for the scheme, the taxpayer must have less than 2 crores of business income or less than Rs 50 lakhs of professional income.
Rs 1,249/-
ITR FOR BUSINESS & PROFESSION
STANDARD PLAN
FILE ITR-4 FORM FOR:
- ITR-4 Form is the Income Tax Return form for the taxpayers who opt for a presumptive income scheme under Section 44AD, 44ADA, 44AE.
- To enroll for the scheme, the taxpayer must have less than 2 crores of business income or less than Rs 50 lakhs of professional income.
Rs 1,499/-
ITR FOR BUSINESS & PROFESSION
PREMIUM PLAN
FILE ITR-4 FORM FOR:
- ITR-4 Form is the Income Tax Return form for the taxpayers who opt for a presumptive income scheme under Section 44AD, 44ADA, 44AE.
- To enroll for the scheme, the taxpayer must have less than 2 crores of business income or less than Rs 50 lakhs of professional income.
Rs 2,499/-
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File ITR-4 Form Online
ELIGIBILITY FOR ITR-4 FORM
ITR-4 can be filed by a Resident Individual / HUF / Firm (other than LLP) who has:
• Income not exceeding Rs.50 Lakh during the FY
• Income from Business and Profession which is computed on a presumptive basis u/s 44AD, 44ADA or 44AE
• Income from Salary/Pension, one House Property, Agricultural Income (up to Rs. 5000/-)
• Other sources which include (excluding winning from Lottery and Income from Race Horses):
o Interest from Savings Account
o Interest from Deposit (Bank / Post Office / Cooperative Society)
o Interest from Income Tax Refund
o Family Pension
o Interest received on enhanced compensation
o Any other Interest Income (e.g., Interest Income from unsecured loan)
WHO IS NOT ELIGIBLE TO FILE ITR-4 FORM ?
- ITR-4 cannot be filed by an individual / HUF / Firm (Other than LLP) who:
• is a Resident Not Ordinarily Resident (RNOR), and non-Resident Indian
• has total income exceeding Rs. 50 Lakh
• has agricultural income in excess of Rs. 5,000/-
• is a Director in a Company
• has income from more than one House Property;
• has income of the following nature:
o winnings from lottery;
o activity of owning and maintaining race horses;
o income taxable at special rates u/s115BBDA or Section 115BBE;
• has held any unlisted equity shares at any time during the previous year
• has deferred income tax on ESOP received from employer being an eligible start-up
• is not covered under the eligibility conditions for ITR-4
What is the presumptive taxation scheme for users filing ITR-4?
- Under presumptive taxation scheme, there is no requirement to maintain the books of accounts.
- Income shall not exceeds Rs.50 Lakh during the FY.
- Income from Business and Profession which is computed on a presumptive basis u/s 44AD, 44ADA or 44AE are given below:
• Section 44AD: Computation of income on estimated basis in the case of taxpayers (being a Resident Individual, Resident HUF, or Resident Partnership Firm (other than LLP) engaged in certain business subject to certain conditions.
• Section 44ADA: Computation of professional income on estimated basis for Assessee being a resident in India and engaged in a profession referred to in section 44AA (1) subject to certain conditions.
• Section 44AE: Computation of income on estimated basis in the case of taxpayers (being an Individual, HUF, Firm (other than LLP) or any other person being a resident or non-resident) engaged in the business of plying, leasing or hiring goods carriages, who owns not more than ten goods carriages at any time during the previous year.
DOCUMENTS REQUIRED TO FILE ITR-4 FORM
- Form 16
- Form 26AS & AIS
- Form 16A
- Bank Statements
- Housing Loan Interest Certificates
- Receipts for Donation Made
- Rental Agreement
- Rent Receipts
- Investment premium payment receipts – LIC, ULIP etc.
PRESUMPTIVE TAXATION SCHEME
| Small Business | Professionals | Transporters | |
|---|---|---|---|
| Applicable Income Tax Section | Section 44 AD | Section 44 ADA | Section 44 AE |
| Eligible Business | Taxpayer may be Wholeseller, Retailer, Civil Constructor or any other business. | Taxpayer may be Legal services, Technical consultancy, Interior decorator, Engineering and Architectural, Medical. | Taxpayer may involve business in Hiring, Plying, Leasing of goods carriages. |
| Max. Turnover Limit | Upto Rs 2 Crore annually | Annual receipts of not more than Rs 50 Lakh. | Owing not more than 10 goods vehicles during the year. |
| Computation | 8% of total receipts and electronic receipts shall be charged at 6% of gross turnover during the year. | 50% of gross receipts. A higher income of more than 50% can be declared. | Rs 7500 per vehicle per month or part therof based on the duration for which the vehicle was owned by the person during the year. |
| Deductions allowed | No further deductions and exemptions are allowed. | No further deductions and exemptions are allowed. | No further deductions and exemptions are allowed (A partnership can claim deduction and interest to the partners from the computed income at Rs. 7500 vehicle per month) |
FREQUENTLY ASKED QUESTION - FAQ.
Is it possible to convert ITR-1 TO ITR-4?
Yes, Form ITR-1 can be converted to ITR-4.
What is inventory in ITR-4?
- Inventories are the assets that include the finished goods, work in progress, and the raw materials that are held by a company for sales in the future.
- It also includes the goods which are purchased and that are held for resale and maintenance supplies, the consumables which are purchased and that are used for the production process.
Is it possible to shift from ITR-3 TO ITR-4?
Switching from ITR-3 to ITR-4 cannot be done unless the sales are declared.
Can doctors file ITR-4?
- Yes, doctors can file ITR 4 after opting for the presumptive scheme and still declare the profits higher than 50% of receipts.
- But if the receipts are under Rs.50 lakhs and the expenses are lower than 50% of the receipts then a significant amount is saved by opting for the scheme.
Is the balance sheet mandatory for ITR-4 FILING?
In the case of ITR-4, it is not necessary to disclose the particulars of the balance sheet.
If I am opting presumptive scheme, Can I claim deduction of other expenditures and depreciation?
No, if a person is paying tax @ 8% as per section 44AD then he cannot claim depreciation or any other expenditure.
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