ITR-4 SUGAM Form Filing - Income Tax Return

For filing returns, the Income Tax Department has set out different forms. These forms are filed by the taxpayers as per the category that they fall under and the source of their income. There are multiple criteria that decide eligibility of a taxpayer to file a particular ITR form. Form ITR-4 is used for filing Income Tax Return by those taxpayers who have opted for the presumptive income scheme under Sections 44AD, 44ADA and 44AE of the Income Tax Act, 1961. This is, however, subject to the business turnover limit of INR 2 crores, exceeding which the taxpayer would be required to file ITR-3. Presumptive Taxation scheme is a scheme that exempts the small taxpayers from maintenance of books of accounts.

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    Who all are eligible to file Form ITR 4?

    Form ITR-4 is required to be filed by those individuals whose income comes from the following sources:

    • Business Income under Section 44AD/Section 44AE
    • Income from profession as per Section 44ADA
    • Income up to INR 50 lakhs from Salary/Pension
    • Income up to INR 50 lakhs from One House Property (does not include brought forward loss or loss to be brought forward under this head)
    • Income from other sources up to INR 50 lakhs (does not include winning from lottery or horse races)
    • Form ITR-4 can also be filed by freelancers in case their income does not exceed INR 50 lakhs.

    Who all are not required to file Form ITR-4?

    Form ITR-4 cannot be filed by any individual who:

    • Holds Directorship in a company
    • Holds any unlisted equity shares at any time during the previous year
    • Has assets/financial interest in an entity outside India
    • Has signing authority in an account outside India
    • Has income from a source located outside India
    • Has profits from a business or profession which is not required to be computed under sections 44AD, 44ADA or 44AE, like income from speculative business, commission, brokerage, etc.
    • Makes Capital Gains
    • Has income from more than one house property
    • Has income under the head “other sources” from winning lottery, horse races, income taxable at special rates u/s 115BBDA or 115BBE
    • Has income which is to be apportioned in accordance with the provisions of Section 5A
    • Has agricultural income exceeding INR 5,000
    • Has any brought forward loss or loss which is to be carried forward under any income head
    • Has loss under “income from other sources”
    • Has a claim of relief under Sections 90, 90A or 91
    • Has any deduction claim under Section 57 (except deduction relating to family pension)
    • Has claim of tax credit which has been deducted at source in the hands of another person
    • Has joint ownership in house property (inserted in AY 20-21)

    What are the components of Form ITR-4?

    Form ITR-4 has the following parts:

    • Part A: General Information
    • Part B: Gross total income under the five heads of income
    • Part C: Deductions and Total Taxable Income
    • Schedule BP: Details of Income from Business
    • Schedule 80G: Details of Donations entitled for deduction under Section 80G
    • Schedule IT: Statement of payment of advance tax and tax on self-assessment
    • Schedule- TCS: Statement pertaining to Tax Collected at source
    • Schedule TDS1: Statement of Tax Deducted at Source on Salary
    • Schedule TDS2: Statement of tax deducted at source on income apart from salary
    • Verification column

    Filing Income Tax Return ITR-4 SUGAM Form

    ITR-4 SUGAM form can be filed under any of the following four methods:

    1. Filing in a paper form – Only applicable for individuals over 80 years old and/or individuals/HUFs whose income does not exceed Rs.5 lakhs and no refund is claimed.
    2. Filing online using digital signature certificate.
    3. Transmitting the data in ITR-4 SUGAM form electronically under electronic verification code.
    4. By transmitting the data in ITR-4 SUGAM form electronically and then mailing (By post) the return in Return Form ITR-V to the Income Tax Office.

    Assessee filing ITR-4 SUGAM form under the fourth method must complete the acknowledgement in ITR-V. After preparing ITR-V, the assessee should print out two copies of Form ITR-V. One copy of ITR-V, duly signed by the assessee, has to be sent by ordinary post to

    Post Bag No. 1,
    Electronic City Office,
    Bengaluru— 560 100,
    Karnataka.

    The other copy may be retained by the assessee for his record.

     

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