The Income Tax Department has introduced seven types of income tax return forms for taxpayers based on their income and other sources. One of these forms include ITR-4 Form. The ITR 4 Sugam Form is filed by the individuals, HUFs, Firms (other than LLP) whose income does not exceed ₹50 lakhs during the financial year. In this article, we will discuss the ITR 4 Form in detail.
What is ITR 4 Form?
The ITR 4 Sugam Form is applicable for taxpayers who have opted for presumptive income scheme. This schemes have been broadly outlined in Section 44AD, Section 44AE and Section 44ADA. Also, if the business turnover of an assessee exceeds ₹2 crores, they need to file ITR-4.
Components of ITR-4 Form
The ITR-4 has been divided into several parts. Below given are the details of the structure of ITR-4 Form-
PART A: General information like name, DOB and address
PART B: Gross income from five heads of pay such as salary, house property, income from other sources
Part C: Deductions and total taxable income
Part D: Tax status and tax computations
Schedule BP: Details on income from business or profession
Schedule IT: Particulars of advance tax and self-assessment tax payments
Schedule TCS: Particulars of tax collected at source
Schedule TDS-1: Tax deduction at source from the salary
Schedule TDS-2: Specifics of tax deducted at source on any income source except salary
Eligibility Criteria to File ITR-4 for AY 2022-23
ITR-4 form can be used and filed only if they meet certain conditions s mentioned below-
- Carrying a business or profession
- Eligible for Presumptive Business Income only when the turnover/gross receipts do not exceed ₹2 crore
- The return may include Salary/Pension
- Income from House Property
- Income from Other Sources
Note: Freelancers who are engaged in the above mentioned profession can also opt if their gross receipts do not exceed ₹50 lakhs.
Who is not eligible to file ITR 4 for AY 2022-23?
ITR-4 cannot be filed by an individual / HUF / Firm (Other than LLP) who:
- Resident Not Ordinarily Resident (RNOR), and non-Resident Indian
- Has total income exceeding ₹ 50 Lakh
- Has agricultural income in excess of ₹5,000/-
- Director in a Company
- Has income from more than one House Property;
- Has income of the following nature:
- Winnings from lottery;
- Activity of owning and maintaining race horses;
- 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
- Not covered under the eligibility conditions for ITR-4
How to Download ITR-4 Sugam Form?
The Income Tax Department offers easy way for individuals and HUFs to download ITR-4 Form. Follow the below mentioned steps to do so-
Step 1: Visit the Income Tax Department website at- https://www.incometax.gov.in/iec/foportal
Step 2: On the right-hand side, you will find ‘Downloads’ tab. Click it.
Step 3: Click ‘Income Tax Return’ available on the left hand side of the screen.
Step 4: Find ITR-4 and then click ‘ITR 4 Notified Form_AY 2022-23’
Step 5: Now you can download the ITR-4 Form in the PDF format.
How to File ITR-4?
Assessees can file ITR 4 through two different methods- Online and Offline. Below given is a detailed process to file ITR 4 online and offline.
ITR 4 can only be filed offline if-
- The individual is of 80 years of age or more
- Income of the taxpayer is less than ₹5 lakhs and do not possess any income tax refund request
The ITR-4 can be submitted through furnishing a return on physical paper form or bar-coded form.
Assessees can file ITR 4 online on the e-filing web portal of Income Tax Department. One needs to verify the filings in any of the below given ways-
- By submitting the return electronically through digital signature
- By communicating the data electronically and then submitting the verification
- Using Aadhaar OTP
After filing the ITR 4, you will receive acknowledgment receipt on your registered email ID.
ITR 4 Form: FAQs
No. There is no mandate to file ITR 4. However, it depends upon the taxpayer who chooses to avail the presumptive income scheme.
Given below are the documents that should be kept handy while filing ITR 4-
· 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.
For AY 2022-23 (FY 2021-22) the due date of filing of ITR-4 is 31st July 2022.