ITR 4

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ITR 4 Form

A new format of ITR 4 form is notified for the assessment year 2019 – 20. This form works as a return form for the taxpayers who opt for presumptive income scheme under section 44AD, section 44AE, and section 44ADA and those who have income less than Rs.50Lakhs.

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)