What is ITR-4? Who can file it and who can’t.

NewDelhi: The ITR-4 is for professionals and self-employed individuals who have opted for the presumptive income scheme. The form has been made available on the website of the department — https://www.Incometaxindiaefiling.Gov.In.

Here is all you need to know about  ITR-4

The Income Tax department explain that Form ITR – 4 (SUGAM) can be used by an Individual/HUF/Firm whose total income for the year includes either of the following:

(a) Business income computed as per the provisions of section 44AD or 44AE

(b) Income from Profession as computed as per the provisions of 44ADA

(c) Income from salary/pension

(d) Income from one house property (excluding cases where loss is brought forward from previous years)

(e) Income from other sources (excluding winnings from lottery and income from race horses).

Further, it says, in a case where the income of another person like spouse, minor child, etc., is to be clubbed with the income of the taxpayer, this return form can be used where income to be clubbed falls in any of the above categories.

Who can’t user Form ITR – 4 (SUGAM)

The Income tax department explains that the form can not be used by an individual/HUF:

• Whose total income for the year includes income from more than one house property.
• Income from winnings from lottery or income from race horses.
• Income chargeable to tax under the head “Capital Gains”.
• Income taxable under section 115BBDA.
• Income of the nature referred to in section 115BBE.
• Any resident having income from any source outside India.
• Agricultural income of more than Rs 5,000.
• Income from speculative business and other special incomes.
• Income from agency business or income in the nature of commission or brokerage.
• Who claims relief under section 90, 90A and/or section 91
• Who is a resident and ordinarily resident and has any assets (including financial interest in any entity) located outside India or signing authority in any account located outside India. 

 

The I-T department further says that in case of a taxpayer who is engaged in any business eligible for the presumptive taxation scheme of section 44AD or section 44AE or section 44ADA but he does not opt for the presumptive taxation scheme, such a taxpayer has to maintain the books of account of the business as per the provisions of section 44AA and has to get these accounts audited. In such a case he/she cannot use ITR 4.