Complete Guide to ITR-4: Simplifying Tax Filing for Professionals.

What is ITR-4?

ITR-4 is an income tax return form used by individuals and Hindu Undivided Families (HUFs) who have chosen the presumptive income plan under Section 44AD, Section 44ADA, or Section 44AE of the Income Tax Act.

It comprises information about income from a business or profession determined on a presumptive basis, as well as other income such as salary, house property, and income from other sources, if applicable.

Who is required to file ITR-4?

ITR-4 should be filed by resident individuals, Hindu Undivided Families (HUFs), or partnership firms if their total income for the Assessment year 2024-25 includes:

1. Income from Business under section 44AD having gross receipts up to 3 crore.
2. Income from the profession is calculated under section 44ADA having gross receipts up to 50 lacs.
3. From Salary / Pension Income, (only in the case of Individuals).
4. Income from One House Property (Excluding the brought forward losses or losses to be carried forward cases under this head).
5. Income from sources other than winning from lottery and income from horse races.

Who is not required to file ITR-4?

ITR-4 cannot be filed:

1. Individuals have total income from salary, house property, or other sources above Rs 50 lakh.
2. Having income from capital gain.
3. An individual who is either a director in a company or has invested in utilized equity shares.
4. Whose books of accounts are required to be audited under the Income Tax Act, of 1961?
5. A Non-resident Individual.
6. More than One House Property.
7. A resident who owns assets (like money or property) or has any financial involvement in a company or entity outside of India.
8. Individuals are subject to Tax Deducted at Source (TDS) under section 194N.

Documents required while filing ITR-4?

Make sure you have the following documents ready when filing ITR-4:

1. Aadhar Card.
2. Pan Card.
3. Form 16, in case of salary income.
4. Form 16A.
5. Form 26AS & AIS.
6. Bank Statement / Passbook.
7. Home Loan Statement.
8. Receipts for donations made.
9. Rental Agreement.
10. Rent receipts.
11. Investment premium payment receipts.

Conclusion:

ITR-4 serves as a crucial tool for individuals, Hindu Undivided Families (HUFs) & firms opting for the presumptive income scheme, streamlining tax return filing for professionals and businesses. Understanding qualifying requirements and compiling required documentation enables a seamless filing procedure and compliance with tax regulations.

At KDP Accountants, we specialize in guiding clients through the complexities of ITR-4 filing, offering personalized support to optimize tax efficiency and minimize compliance burdens.

The above note is subject to further study and clarifications. This note does not form an opinion from our end and before taking any decision based on above, it is recommended to consult our experts on the subject.Kamdar, Desai & Patel will not be liable for any damages (including, without limitation, damages for loss of business projects, or loss of profits) arising in contract, tort or otherwise from the use of or inability to use this article, or any of its contents, or from any action taken (or refrained from being taken) as a result of using this article or any such contents.