ITR-4 Form - What is ITR-4 Form, Eligibility, Documents and Structure

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ITR-4 form, also known as "Sugam" form, is a document prescribed by the Income Tax Department of India for individuals and Hindu undivided families (HUFs) who have declared presumptive income under Section 44AD, 44ADA, Section 44AE of the Income Tax Act.

Eligibility for ITR-4

Find out the eligibility requirements for filing ITR-4 form by reviewing the information below:

Income derived from business and profession is calculated presumptively under section 44AD, 44ADA, or 44AE of the Income Tax Act.

Total income for the fiscal year is not more than ₹50 lakh.

Income from Salary or Pension.

Income up to Rs 50 lakh from alternative sources (except lottery and horse racing winnings).

Freelancers or self-employed individuals who earn income from freelancing activities or consulting services can file ITR-4 if they meet the prescribed criteria.

Who is not required to file ITR-4?

People who fall under the following categories are not required to file ITR-4:

Income from more than one house property.

Individuals who receive income from capital gains.

Earns more than Rs. 5,000 in agricultural revenue.

Individuals who hold directorial positions in a company are not permitted to utilize this ITR-4 Form.

Any unlisted shares of equity during the previous year.

Losses either carried forward or incurred under any category of income.

Income is received from sources outside India.

Individual claiming relief for foreign tax paid under section 90, 90A, or 91.

Holds the status of a Resident Not Ordinarily Resident (RNOR) as well as a non-Resident Indian.

Required documents for ITR-4 Form

The documents required to file ITR-4 form include:

Rental Agreement

Bank Statements

Form 16

Form 16A

Insurance Receipts

Aadhar Card

Pan Card

Housing Loan Interest Certificates

Form 26AS and AIS

Structure of ITR-4 Form

Here is the general outline of the standard format of ITR-4 form:

Part A - General Information : This section collects basic details of the taxpayer.

Part B - Gross Total Income : Gross total income from five heads of income.

Part C - Deductions and Taxable Total Income : Taxpayers report deductions claimed under various sections of the Income Tax Act.

Part D - Computation of Tax Payable : This section calculates the total tax liability based on the taxable income of the taxpayer and the applicable tax rates.

Schedule BP - Details of Income from Business or Profession : It collects detailed information about income earned from business or profession.

Schedule IT, TCS, TDS 1 – Details of Advance Tax and Self-Assessment Tax Payments : Taxpayers provide information about any advance tax or self-assessment tax payments made during the year.

Schedule TDS2 : Details of Tax Deducted at Source (TDS) on income other than salaries are explained in this schedule.