File ITR-4 Easily With IVEC.in
Any individual, HUF, or partnership firm wishing to be eligible to offer its income on a presumptive basis may use ITR 4, also known as Sugam. A taxpayer is assumed to have earned a minimum income under the presumptive taxation system, which is stated as a percentage of their business or profession’s total earnings or as a fixed sum based on the number of commercial cars they possess. Please be aware that an LLP is not entitled to use ITR 4 but can use ITR 4 if it is eligible for presumptive taxation. Only those who are residents for income tax purposes may utilise this Form.
Complete Info About ITR 4
Who is not required to submit this Form?
ITR-4 is not an option for the people and HUFs listed below:
- If the entire amount of income earned exceeds Rs. 50 lakh.
- If any losses from prior years have been carried forward.
- If the person is authorised to sign at a location outside of India.
- Whether there are ever any investments made in unlisted equity shares at any point in the fiscal year.
- If someone has overseas assets or has earned international money.
- If more than one residential property has contributed to the income.
- If the person works as a director for a corporation.
- If the person is an RNOR or a non-resident.
Who must submit an ITR 4?
Individuals, HUFs, and partnership firms that had the following total annual income in AY 2020–21 are required to file Form ITR 4:
- Section 44AD or 44AE business income
- Earnings from a profession as determined under section 44ADA
- Up to Rs 50 lakh in salary or pension income
- Income from a single residential property earning up to Rs. 50 lakh (excluding the brought forward loss or loss to be carried forward cases under this head)
- Up to Rs 50 lakh in income from other sources (excluding winning from lottery and income from horse races).
ITR-4’s organisational structure is broken down into the following sections:
General: Part A
- Name Initials
- The PAN number
- Office address
- Additional personal details
- Document status
- Accounting Information
- Business nature
Part A-BS – Balance sheet of the proprietary business or profession as of March 31, 2017
The following details must be provided in this section:
- Income sources
- Spending of funds
- Provide the following information if regular books of accounts are not kept:
- total number of different borrowers
- the sum of all unsecured creditors
- Quantity of all stock-in-trade
- Amount of the remaining cash
Profit and Loss Account, Part A
The following information must be completed under this section:
- Profit and loss account credits:
- Debits to the profit and loss account
- Tax and appropriations provision
The following must be provided if there are no regular books of account, business, or profession:
- Gross revenue
- Costs of gross profit
- Net income
Other Information, Part A-OI
The information required in this area must include the following:
- The accounting method used the previous year: Cash or Mercantile.
- Has the process of account changed at all? (Yes/No)
- Effect on profit due to, if any, a departure from Section 145A’s accounting requirements in the method of accounting used the previous year.
- The closing stock value method was used the prior year.
- Uncredited amounts to the profit and loss account
- Amounts debited to the profit and loss account are not permitted under Section 36 because relevant clauses’ applicable conditions weren’t met.
- Amounts deducted from the profit and loss account in the payments that Section 37 prohibits
- Sums deducted from the profit and loss account that are prohibited by Section 40
- To the extent prohibited by Section 40A, amounts are debited to the profit and loss account.
- Any sum that was previously forbidden under Section 43B but was authorised the year before
- Any money deducted from the prior year’s profit and loss statement but forbidden under Section 43B
- Credit balance remaining on the accounts for Union Excise Duty, Service Tax, Vat/Sales Tax, and Any Other Taxes, as well as the total balance due
- Amounts are considered profits and gains under Section 33AB or 33ABA.
- Any profit subject to taxation under Section 41
- The amount paid or deducted from the profit and loss accounts for a prior period.
Quantitative information, Part A-QD
You must provide the following information: In the event of a trade issue:
- stock opening
- Acquisition made the previous year
- The prior year’s sales
- Final stock
- Lack of surplus
When it comes to a manufacturing company:
Stock opening
By-products and finished goods
Outline total income and tax computation for income subject to total tax in Part B. The 35 Schedules listed below are included in this part:
- Schedule TI – Total Income Calculation
- Section TTI – Calculating the Tax Owed on the Total Income
- Schedule S – Details of Salary Income
- Schedule HP – Details of House Property Income
- Schedule BP – Calculation of Business or Profession Income
- Schedule DEP – Summary of Depreciation in Assets:
- Schedule ESR: Section 35, 35CCC, or 35CCD Deduction
- Schedule CG: Capital Gains
- Schedule OS – Other Sources of Income
- Schedule CYLA: Income details after current year losses have been offset
- Schedule BFLA: Details of income after set-off of brought-forward losses from prior years
- Schedule CFL: Details of losses to be carried forward to subsequent years
- Schedule UD (4): Unabsorbed depreciation and allowance under Section 35
- Schedule 10A – Section 10A Deduction
- Schedule 80G – Information on Donations Eligible for Section 80G Deduction
- Schedule 80-IA – Section 80-IA Deductions
- Schedule 80-IB – Section 80 IB Deductions
- Section 80-IC or 80-IE deductions are listed on Schedule 80-IC or 80-IE.
- Schedule VI-A – Deductions under Chapter VI-A
- Schedule AMT: Computation of Alternate Minimum Tax Payable Under Section 115JC
- Schedule AMTC: Section 115JD Tax Credit Calculation
- Schedule SPI – Income of particular persons includable in assessee’s income
- Schedule SI – Income subject to special rates of tax
- Schedule IF: Information on the partnership firms in which you are a partner
- Schedule EI – Exempt Income Information
- Schedule FSI: Information on foreign income and tax benefits
- Schedule TR: A summary of tax relief claims made for taxes paid outside India.
- Schedule FA: Information on foreign assets and foreign-sourced income
- Schedule 5A: Information on the distribution of income between spouses under the Portuguese Civil Code
- Schedule AL: Assets and Liabilities at Year’s End
How do I submit a Form ITR-4?
You have the option of submitting your ITR-4 Form offline or online.
Offline:
Only one of the following situations allows the ITR form to be submitted offline:
- The person is 80 years of age or older.
- The person’s income is less than Rs 5 lakhs, and they are exempt from the requirement to claim a refund in their income tax return.
- The following methods exist for filing the return offline:
- By submitting a return on actual paper
- Through submission of a bar-coded return
- When you submit your actual paper return, the Income Tax Department will give you an acknowledgement.
Online/Electronically
By providing the return electronically with a digital signature — if you electronically sign your ITR-4 Form, an acknowledgement will be sent to the email address you have on file. Alternatively, you can directly download it from the income tax website.
You must sign the Return Form ITR-V and send it to the Income Tax Department’s CPC office in Bangalore within 120 days of e-filing after electronically transmitting the data and submitting the return’s verification.
Keep in mind that ITR-4 is an annexure-less form, meaning you do not need to transmit it with any attachments.
ITR-4 for AY 2021–22 saw significant changes
- ITR 4 hasn’t undergone any significant changes since last year.
- A declaration allowing for the selection of the old or new tax regimes has been added to ITR 4 for AY 2021–22. The statement is “Are you selecting for new tax regime under section 115 BAC” in Part A-general information (Yes or No). If so, please provide the Form 10IE submission date and acknowledgement number.
- Part B: Under “Income from other sources,” the e-filing tool must have a drop-down list that specifies the type of income, such as interest from savings accounts, deposits, etc. Dividend income must be broken into quarterly payments to qualify for section 234C’s applicable relief from the interest charge for advance tax payment default.
- There is no more extended Schedule DI, which was added for AY 2020–21.
If you submit your ITR-4 Form electronically under digital signature, the acknowledgment will be sent to your registered email id. You can also choose to download it manually from the income tax website. You are then required to sign it and send it to the Income Tax Department’s CPC office in Bangalore within 120 days of e-filing.
Remember that ITR-4 is an annexure-less form i.e. you do not have to attach any documents when you send it.
Frequently Asked Questions
Can I also submit my ITR 4 offline?
Yes, but only if the following conditions are met: a) The taxpayer is 80 years of age or older; b) the taxpayer has an annual income of less than Rs 5 lakh and is not required to make an income tax refund claim.
Can I deduct other expenses and depreciation if I use the presumed scheme?
No, a person cannot claim depreciation or any other expense if they are paying tax at the rate of 8% following Section 44AD.
I chose the Section 44ADA presumptive taxation plan. Do I have to keep books of accounts following Section 44AA?
You are not required to keep the books of accounts relating to the designated profession if you choose to use the presumptive taxation scheme of Section 44ADA (declare income at 50% of the gross receipts) and are engaged in the defined profession as described in Section 44AA (1). (i.e., the provision of Sections 44AA will not apply).
What happens when unrealised rent is later realised in terms of taxes?
Any additional unrealised rent recoveries will be counted as part of your income under the heading Income from House Property in the year that the rent is realised (whether or not you are the property owner in that year). It will be taxed after deducting a sum equivalent to 30% of the unrealised rent.
What day is the ITR-4 filing deadline for AY 2021–22 (FY 2020–21)?
The ITR-4 filing deadline is July 31, 2021, for AY 2021–22 (FY 2020–21).
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