Explore all the details you need about ITR-4 Return Filing, tailored for your needs.
ITR-4 Return Filing is specifically designed for taxpayers who have opted for the presumptive income scheme outlined in Section 44AD, Section 44ADA, and Section 44AE of the Income Tax Act. This form is mandatory for eligible taxpayers and simplifies the process of filing income tax returns for businesses and professionals.
The ITR-4 form is used by individuals and Hindu Undivided Families (HUFs) who have opted for the presumptive income scheme, making it suitable for those engaged in small businesses, professions, or freelancing.
For businesses with annual turnover exceeding Rs. 2 Crores, the ITR-3 form should be used. ITR-5 may also be required in certain situations depending on the taxpayer's profile.
Solocorp offers expert guidance in filing the ITR-4 form, ensuring that all tax details are accurately reported. Our professional team provides you with a seamless filing experience and ensures compliance with tax regulations to avoid any penalties.
ITR 4 Form is designed for individuals, Hindu Undivided Families (HUFs), and firms (excluding Limited Liability Partnerships or LLPs) who choose to utilize the presumptive income scheme as per Sections 44AD, 44ADA, and 44AE of the Income Tax Act.
Taxpayers eligible to file ITR-4 typically include small businesses, freelancers, and professionals who are earning income under the presumptive income scheme and meet the criteria set by the Income Tax Department.
The presumptive taxation scheme is designed to simplify tax compliance for certain individuals and businesses.
Under Section 44AA of the Income Tax Act, individuals and businesses engaged in specific activities are typically required to maintain detailed accounting records. However, Sections 44AD, 44ADA, and 44AE offer relief to small taxpayers by allowing them to estimate their income at prescribed rates, reducing the burden of maintaining extensive financial records.
This scheme is beneficial for taxpayers who qualify, as it provides a simpler method of income calculation without the need for maintaining complex books of accounts.
Section 44AD allows Resident Individuals, Resident Hindu Undivided Families (HUFs), and Resident Partnership Firms (excluding Limited Liability Partnerships) engaged in certain businesses to calculate their income on an estimated basis, provided they meet specific conditions.
This scheme offers a simplified method for businesses to compute their income, thus reducing the burden of maintaining detailed financial records.
Section 44ADA provides Resident individuals in India who are professionals in fields specified under Section 44AA(1) with a way to estimate their professional income, subject to certain conditions.
This scheme is designed to benefit small professionals, offering them a straightforward approach to calculate income without the need for detailed record-keeping.
Section 44AE applies to individuals, HUFs, firms (excluding Limited Liability Partnerships), and other residents or non-residents engaged in the business of plying, leasing, or hiring goods carriages. They can estimate their income under this scheme, provided they own not more than ten goods carriages during the previous year.
This scheme simplifies income calculation for businesses in the goods carriage sector, making it easier to comply with tax obligations without maintaining complex records.
To qualify for using the ITR-4 SUGAM form, the taxpayer must meet the following criteria for the assessment year:
The following categories of taxpayers do not fall under the ITR 4 applicability criteria:
Directors of a company.
Individuals who have held unlisted equity shares at any point during the previous year.
Taxpayers with assets, including financial interests, in any entity situated outside India.
Individuals who have signing authority in any account located outside the country.
Persons with income from sources outside India.
The ITR 4 Form is structured into four parts for easy reporting of your income and tax-related information.
This section of the ITR 4 form includes your personal details such as name, gender, PAN number, date of birth, income tax ward, address, email address, and mobile number.
In this part, you report your income from various sources categorized into five heads: income from business, income from salary or pension, income from house property, and income from other sources. By adding all these incomes together, you calculate your gross total income.
Here, you list the deductions allowed under various sections of the Income Tax Act, such as 80C, 80D, 80E, and others. These deductions are subtracted from your gross total income to arrive at your total taxable income.
This section involves detailed calculations related to your tax liability. It includes factors like surcharge, relief under section 89, interest under section 234B and 234C, advance tax paid, TCS collected, refund, rebate under section 87A, cess on tax payable, and more. It computes your total tax payable, and if the total tax and interest exceed the taxes paid, it calculates the balance tax due.
For individuals reporting income from business and opting for the presumptive income scheme under Section 44AD or 44AE, additional information needs to be provided:
Schedule IT: Statement of advance tax and self-assessment tax payment.
Schedule TCS: Statement of taxes collected at source (TCS).
Schedule TDS1: Statement of tax deducted at source on salary.
Schedules TDS2: Statement of tax deducted on income other than salary.
Solocorp provides expert support for filing your ITR-4 form, ensuring that you meet all the necessary requirements and comply with tax regulations.
Our professionals have a complete understanding of the ITR-4 process and will provide expert guidance to ensure accurate and compliant filing.
We offer a user-friendly online platform, allowing you to file your returns conveniently from the comfort of your home or office.
With our thorough review process, we guarantee that your ITR-4 form is error-free, minimizing the risk of tax-related issues.
We prioritize timely filing to help you avoid penalties for late submission and ensure peace of mind during tax season.
Our experienced professionals guide you throughout the ITR-4 filing process, ensuring accuracy and compliance.
We offer a hassle-free online platform for filing your returns, eliminating long queues and paperwork.
Our detailed review process guarantees error-free filing, minimizing the risk of tax-related issues in the future.
We ensure your returns are filed on time to avoid penalties and delays.
If eligible, we assist you in processing your tax refund efficiently, ensuring you receive it promptly.
Solocorp’ expert team is always available to address any queries and provide guidance throughout the filing process.
We keep you updated on changes in tax laws and deadlines to ensure you're always compliant with the latest regulations.