ITR 4 Form

What is ITR 4?

It is basically a form for Income Tax Return and is for the taxpayers who have selected for the presumptive scheme of income as per Income Tax Act’s Section 44AE, Section 44AD, and Section 44ADA. However, if the business's turnover exceeds Rs.2Crore, then also the taxpayer has to file ITR – 3.

Who Should File ITR 4?

ITR – 4 must be filed by any HUF/ individual/ partnership firm whose total salary for Assessment Year 2019 – 20 includes:

• Income through a profession that is calculated u/s 44ADA.
• Income from business u/s 44AE or 44AD.
• Pension/ salary up to Rs.50Lakh.
• Income through other sources that are up to Rs.50Lakh (this excludes winning from horse race and from the lottery).
• Income through one house property that is up to Rs.50Lakh (this excludes the brought forward loss or loss that is carried forwarded in this head).

Who Should Not File ITR 4 for Assessment Year 2019–20?

• Anyone whose source of income is house property, salary, or some other source and this income is more than Rs.50Lakhs is not eligible to use this form.
• Any individual who is either invested unlisted equity shares or is a director in a company is also not eligible to use this form.

Structure of ITR 4 Form

The structure of the ITR 4 form can be divided into:

• Part A: General Information

• Part B: Gross total income through the five income heads:

• Part C: Total taxable income and Deduction

• Part D: Tax status and computation

• Schedule BP: Details of income from Business

(For Assessment Year 2018 – 19, this form is modified to include details of GST along with detailed information of finances which is furnished in Schedule BP)

• Schedule 80G: Donations' details that are entitled to deduction as per 80G

• Schedule IT: Payment’s statement of tax on self-assessment and advance tax.

• Schedule – TCS: Statement’s tax collected at the source.

• Schedule TDS1: Tax deducted statement at the source over the income that is other than salary.

• Schedule TDS2: Tax deducted statement at the source over the income that is other than salary.

• Verification Column:

The process of File ITR 4

One can submit his/her ITR 4 form either offline or online:

Offline:

One can file the ITR 4 form offline only in the below-mentioned cases:

• If any individual is of 80 years or more.
• The individual’s income is not more than Rs.5 Lakhs and those who do not need to claim the refund in ITR.

The following is the process of filing Income Tax Return offline:

• By furnishing Income Tax Return in the form of physical paper.
• By furnishing the bar-coded return.

The income tax department issues an acknowledgment during the submission of the physical paper return.

Electronically / Online:

• This can be done by furnishing the Income Tax Return electronically under the digital signature.
• By electronically transmitting the data and after that submitting the return’s verification in the Return Form i.e. ITR – V.

If one submits his/her ITR 4 form electronically with a digital signature, then an acknowledgment is sent to that person on his/her registered email id. One can also select to download this form manually from the website of Income Tax Department. Then he/she is needed to sign this form and send it to the Department of Income Tax’s CPC Office that is situated in Bangalore within 3 months (approximately 120 days) of e-filing.

Note: ITR 4 is one of those forms that are annexure-less, which means; one does not have to attach any document while sending it.

Major Changes in ITR 4 Form for the Assessment Year 2019-20

• Form ITR 4 for the Financial Year 2018 -19 should not be used by an individual who either has invested in the equity shares (unlisted) of a company or is a director of a company.
• The returns that an individual has filed in the section are segregated between filed in the response to some notice and normal filing.
• In Part ‘A’ of the form, a new checkbox for ‘Pensioners' is introduced in the section with the name ‘Nature of Employment'.
• The salary deductions are bifurcated into entertainment allowance, standard deduction, and professional tax.
• Deduction under 80G: The donation amount is divided into cash and another mode.
• Under section 44AE, new fields have been introduced such as the registration number of the carriage of the goods, the number of months for which the good carriage was leased/ owned/ hired, good carriages' tonnage capacity in MT.
• Separate details of the business such as business's name, code of business, section 44ADA, 44AD, and 44AE description.
• In the GST section, the turnover tax is replaced with ‘Annual value of outward supplies according to (or as per) the GST returns field’.
• The taxpayers are needed to provide detailed information as per the income in ‘Income from other sources’ tab.
• The option ‘Deemed to be let out property’ is available under ‘Income from house property’.
• For senior citizens, a column u/s 80TTB is included.
• A separate new column for deduction is introduced in ‘Income from other sources’ under section 57(iia) in the situation of income through a family pension.