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This ITR is also known as Sugam , is filed by an eligible assessee opting for a presumptive taxation scheme to bring into light his/her gains and profits either through business or profession as per the section 44AD, 44ADA, or 44AE. However, this is based on the company turnover limit, i.e. if the turnover of the business is less than Rs.2 crore, the assesse can opt to submit ITR 4 Form.
Presumptive taxation scheme?
A person engaged in business or profession is required to maintain regular books of account and further, he has to get his accounts audited. To give relief to small taxpayers, the Income-tax Act has framed the presumptive taxation scheme under sections 44AD, 44ADA, and 44AE. Here, the business entity is required to declare a given percentage of his business turnover as his income.
Income Tax Act provides three presumptive taxation schemes:
Presumptive taxation scheme of section 44AD: This scheme applies to all persons engaged in business, whose receipts from turnover is less than Rs 2 crore. Those opting for this scheme can declare their income at the rate of 6% or 8%, and do not have to maintain account books.
Presumptive taxation scheme of section 44ADA: The scheme under this section applies to professionals engaged in professions like legal, medical, engineering, etc. Those opting for this scheme have to declare their income at 50% of the total receipts.
Presumptive taxation scheme of section 44AE: The scheme under this section applies to persons engaged in the business of plying, hiring, or leasing of goods carriages, and who do not own more than 10 vehicles at any time during the year. Those opting for this scheme can declare their income at Rs.7, 500 per vehicle per month.
Individual driving income from the undermentioned sources must file ITR 4 Form:
Section 44AD/Section 44AE Business Income.
According to Section 44ADA, income is from a profession.
Taxpayer having income up to Rs. 50 lakh in the following cases:
Salary or pension payments.
One house property.
Income from other sources (excluding winning from lottery or horse races).
Structure ITR 4 might likewise be reported by freelancing professionals if the pay does not surpass Rs. 50 lakh.
An individual having income coming from wages, house property, or other sources exceeds Rs 50 lakh cannot file ITR 4 Form for the Assessment year 2021-22. An individual who is a director in an organization, or has invested in unlisted value shares, individual having capital gain or having multiple house properties cannot file ITR 4 for the Assessment year 2021-22.
Following documents are required for successful filing of the ITR-4:
First thing, you will need to check your Annual Information Statement.
You will need Form-16 issued by your employer- in case of income from salary.
Form-16A (TDS Certificate) issued by TDS Deductor for other than salary.
Form-26AS to verify TDS on salary as well as TDS other than salary. Form 26AS could be downloaded from the E-filing portal.
In case you have received rent from any rented house property then you will require local tax payment, interest on borrowed capital if any, and tenant details.
Details of income earned under section 44AD, 44ADA and 44AE.
For claiming tax-saving deduction under 80C, 80D, or 80G, such as Life insurance premium, donations, rent receipts, or health insurance expenditure, relevant documents need to be produced as proof of such expenditure made.
The taxpayers have been divided into different groups, based on their source of income and the limits. Accordingly, each taxpayer has to file the type of return that applies to them.
The user can file ITR in two ways:
Online mode through E filing portal
Offline mode through offline utility
There are the following methods for filing ITR-4:
Filing a return electronically under digital signature.
Transmitting information in the ITR-4 structure electronically using an electronic verification code.
Transferring the information in ITR-4 structure electronically followed by the accommodation of return confirmation in.
Pre-requisites for filing ITR-4:
Enrolled the client on the e-Filing portal using a valid client ID and log-in password.
The PAN's status should be in an active state.
PAN and Aadhaar should be linked.
Pre-approve one bank account minimally and label it for a refund.
Link Aadhaar/e-Filing gateway/your bank/NSDL/CDSL for e-Verification with a valid contact number.
Download the offline utility or profit from third-party software, if utilizing offline mode.
Login into the Income-tax portal, by filing the mandatory fields.
Click on the e-file under the income tax return link.
Select assessment year 2021-2022, then continue.
Select mode of filing as online.
Select the status that applies to you and then select, ITR-4, if applicable to you.
Select the checkboxes applicable to you.
After reading the instructions, fill in all the applicable and mandatory fields, as Form ITR-4 has been divided into four parts.
The details of these parts and Schedules are as under:
General information related to Assessee
Gross Total Income
Deductions and Taxable Total Income
Tax Computations and Tax Status
Business or Profession
Advance Tax and Self-Assessment Tax
Details of Tax Collected at Source
Details of TDS from Salary
Details of TDS from Other than Salary
Review your pre-filled data and confirm at the end of each section.
In case there is a tax liability, you will be shown a summary of your tax computation, you can either choose to pay now or pay later, whichever option is suitable.
In case you are eligible for any refund, preview the page and proceed to submit.
The taxpayer can choose any of the applicable verification options under the ‘taxes paid and verification tab’.
To verify all the details entered, click on Preview and submit button.
Submit the ITR.
E-verification can be done by entering the AADHAR OTP when asked for.
The AADHAR OTP has to be filled under 60secs, otherwise, the ITR will be auto-submitted, which will have to be verified later under the ‘My Account section’ within 120 days.
You can view the uploaded ITR.
If you are using OFFLINE MODE UTILITY, then download to prefill the data and fill schedule as discussed above in the tables above for online mode. After filling in all respective information, generate a JSON file and upload it with the help of the utility.
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