ITR 4 Form (Sugam)- Eligibility And Procedure for Filing [Latest]

ITR-4 Form

1. The current Income-tax Return (ITR) Form-4 is to be filed by small business owners, who do not maintain books of accounts but only maintain sales ledger in approximate volume. This includes online sellers, traders, wholesalers and manufacturers, etc.
2. Then freelancers such as online content writers, bloggers, vloggers, etc. need to file ITR-4 Form. Also, professionals like chartered accountants, doctors, lawyers and engineers, etc. need to file this form.
3. Individuals who are drawing a salary as well as earning additional income from freelancing activities or part-time business also need to file ITR-4 Form. Furthermore, individuals who make profits through Futures and Options (F&O), cryptocurrency, commodities, or forex need to file this particular form.

About ITR-4

1.ITR-4 Form is the Income Tax Return form for the taxpayers who opt for a presumptive income scheme under Section 44AD, Section 44ADA and Section 44AE of the Income Tax Act.

2.However, if the turnover of the business mentioned above exceeds Rs 2 crores, the taxpayer will have to file ITR-3.

Who is required to file ITR-4?

ITR 4 is to be filed by the individuals/HUF/ Partnership firm whose total income of AY 2020-21 includes as below:

1. Business income under section 44AD or 44AE.
2. Income from profession calculated under section 44ADA.
3. Salary/pension having income up to Rs 50 lakh.
4. Income from One House Property having income up to Rs 50 lakh (excluding the brought forward loss or loss to be carried forward cases under this head).
5. Income from Other Sources having income up to Rs 50 lakh (Excluding winning from lottery and income from horse races).

Note: Freelancers engaged in the above profession can also opt for this scheme if their gross receipts don’t exceed Rs 50 lakhs.

Who is not required to file ITR-4

1. An individual having income from salary, house property or other sources above Rs 50 lakh cannot use this form.
2. An individual who is either a director in a company and has invested in unlisted equity shares cannot use this form.
3. An individual, HUF or partnership firm whose books of accounts should be audited under the Income Tax Act, 1961.
4. Resident but not ordinarily residents (RNOR)
5. Non-residents
6. In case an individual is either a director in a company or has invested in unlisted equity shares.
7. Deferred tax on ESOP received from employer being an eligible start‐up.
8. Having an agricultural income of more than Rs 5,000.