ITR-4 Form

A comprehensive guide to understanding the ITR-4 Form

What is the ITR-4 Form?

The ITR-4 Form is applicable for individuals or HUFs who have income from proprietary business or are carrying on a profession.

If the requirements of audit are applicable, the due date of filing of return is 30th September. Otherwise, usually the due date of filing of return for non-audit cases is 31st July.

In case the presumptive method of taxation is applicable (Section 44AD and Section 44AE of the Income Tax Act),ITR-4S must be filed.

Since ITR-4S is applicable where gross receipts/turnover is less than Rs 1crore; assesses who are carrying out business or profession under presumptive income as per section 44AD & 44AE of the Income Tax Act but have turnover/gross receipts of more than Rs. 1 crore; will have to file ITR-4.

Who is eligible to file using the ITR-4 Form?

Assesses who are eligible to file using the ITR-4 Form are:

• Carrying on a business or profession
• Eligible for Presumptive Business Income but where Turnover/Gross Receipts exceeds Rs. 1 crore
• Return may include Salary/Pension
• Earn Income from House Property
• Earn Income from Other Sources

What is the structure of the ITR-4 Form?

ITR-4 is divided into:

• Part A
  • Part A-GEN: General information and Nature of Business
  • Part A-BS: Balance Sheet as of March 31, 2015 of the Proprietary Business or Profession
  • Part A-P&L: Profit and Loss for the Financial Year 2014-15
  • Part A-OI: Other Information (optional in a case not liable for audit under Section 44AB)
  • Part A-QD: Quantitative Details (optional in a case not liable for audit under Section 44AB)
• Part B: Outline of the total income and tax computation in respect of income chargeable total tax.
• Verification

After this there are 35 schedules.

• Schedule-S: Computation of income under the head Salaries.
• Schedule-HP: Computation of income under the head Income from House Property
• Schedule-DPM: Computation of depreciation on plant and machinery under the Income-tax Act
• Schedule DOA: Computation of depreciation on other assets under the Income-tax Act
• Schedule DEP: Summary of depreciation on all the assets under the Income-tax Act
• Schedule DCG: Computation of deemed capital gains on sale of depreciable assets
• Schedule ESR: Deduction under section 35 (expenditure on scientific research)
• Schedule-CG: Computation of income under the head Capital gains.
• Schedule-OS: Computation of income under the head Income from other sources.
• Schedule-CYLA: Statement of income after set off of current year’s losses
• Schedule BFLA: Statement of income after set off of unabsorbed loss brought forward from earlier years.
• Schedule CFL: Statement of losses to be carried forward to future years.
• Schedule- UD: Statement of unabsorbed depreciation.
• Schedule- 10A: Computation of deduction under section 10A.
• Schedule- 10AA: Computation of deduction under section 10AA.
• Schedule- 10B: Computation of deduction under section 10B.
• Schedule- 10BA: Computation of deduction under section 10BA.
• Schedule 80G: Statement of donations entitled for deduction under section 80G.
• Schedule- 80IA: Computation of deduction under section 80IA.
• Schedule- 80IB: Computation of deduction under section 80IB.
• Schedule- 80IC/ 80-IE: Computation of deduction under section 80IC/ 80-IE.
• Schedule VIA: Statement of deductions (from total income) under Chapter VIA.
• Schedule SPI: Statement of income arising to spouse/ minor child/ son’s wife or any other person or association of persons to be included in the income of assesse in Schedules-HP, BP, CG and OS.
• Schedule SI: Statement of income which is chargeable to tax at special rates
• Schedule-IF: Information regarding partnership firms in which assessee is a partner.
• Schedule EI: Statement of Income not included in total income (exempt incomes)
• Schedule IT: Statement of payment of advance-tax and tax on self-assessment.
• Schedule TDS1: Statement of tax deducted at source on salary.
• Schedule TDS2: Statement of tax deducted at source on income other than salary.
• Schedule-TCS: Statement of tax collected at source.
• Schedule TR: Statement of tax relief claimed under section 90 or section 90A or section 91.
• Schedule FA: Statement of Foreign Assets.

How do I fill out the ITR-4 Form?

Here are a few general guidelines to keep in mind while filling your ITR-4 form:

• If any schedule is not applicable to you, strike it out and write —NA— across it
• If any item is not applicable to you, write NA against it
• Indicate nil figures by “Nil”
• Put a “-” sign before negative figures
• All figures are to be rounded off to the nearest one rupee except figures for total income/loss and tax payable. Those are to be rounded off to the nearest multiple of ten.
• If you are an individual, under the Employer Categoryyou should tick Government if you are a Central/State Government employee. You should tick PSU if you work in a public sector company of the Central/State Government.

What is the best sequence to fill it out?

The easiest way to fill out your ITR-4 Form is to follow this sequence:

• Part A
• All the schedules
• Part B
• Verification

How do I file my ITR-4 Form?

You can submit your ITR-4 Form either online or offline. It is mandatory to file Income Tax Returns electronically (either through Mode 3 or Mode 4) for the following assesses:

• those who earn more than Rs. 5 lakhs per year
• those having any assets outside India (including financial interest in any entity) or signing authority in any account outside India
• those claiming relief under Section 90/90A/91 to whom Schedule FSI and Schedule TR apply

Offline:

• By furnishing a return in a physical paper form
• By furnishing a bar-coded return

The Income Tax Department will issue you an acknowledgment at the time of submission of your physical paper return.

Online/Electronically:

• By furnishing the return electronically under digital signature
• By transmitting the data electronically and then submitting the verification of the return in Return Form ITR-V

If you submit your ITR-4 Form electronically under digital signature, the acknowledgment will be sent to your registered email id. You can also choose to download it manually from the income tax website. You are then required to sign it and send it to the Income Tax Department’s CPC office in Bangalore within 120 days of e-filing.

Remember that ITR-4 is an annexure-less form i.e. you do not have to attach any documents when you send it.

Frequently Asked Questions

What is the difference between ITR-4 and ITR-4S?

ITR-4 is to be filled by individuals/HUFs/small businesses having income from proprietary businesses or profession.

In case the presumptive income method is applicable to you, you must file ITR-4S.

However, businesses or profession which are covered under presumptive income under section 44AD and section 44AE where the Turnover/Gross Receipts exceeds Rs 1 crore must file ITR-4.