Today in this Guide we are learning about “ITR 4 Form for Whom”. Who can use ITR 4 Form or which Person can Filed Income tax return using ITR 4 Form.This comprehensive guide aims to provide a better understanding of the ITR-4 Form, its eligibility criteria, ITR 4 form structure, and who should and should not file this form. If you want to gain knowledge about ITR 4 form then read this article carefully till the end.

What is ITR-4 Form ?

The Income-tax Return (ITR) Form-4 is an important document for all small business owners, freelancers, and professionals(chartered accountants, doctors, lawyers and engineers), to fulfil their tax obligations. It includes individuals who do not maintain books of accounts but rely on sales ledgers or engage in specific income generating activities.

Many small business owners such as: firms, online selling, trading, wholesalers and manufacturers,etc. Also this ITR-4 Income tax return includes vloggers, bloggers, online content writers, video editors, graphics designers and professionals, etc.

ITR 4 is for Whom or Who can Filed ITR 4 Form

ITR 4 is a simplified income tax return form that can be used by individuals, Hindu Undivided Families (HUFs), and partnership firms to declare their income. The form is designed for taxpayers whose total income does not exceed ₹50 lakh and who have income from the following sources:

  • Business income under Section 44AD or 44AE
  • Income from profession calculated under Section 44ADA
  • Salary or pension up to ₹50 lakh
  • Income from one house property up to ₹50 lakh (excluding brought forward loss or loss to be carried forward cases under this head)
  • Income from other sources up to ₹50 lakh (excluding winning from lottery and income from horse races)

Who are not Eligible for ITR 4 Form

The following taxpayers are not eligible to file ITR 4 :

  • Individuals who are directors in a company
  • Individuals who hold any unlisted equity shares at any time during the previous year
  • Individuals who have assets/financial interest in an entity outside India
  • Individuals who have signing authority in any account outside India
  • Individuals who have income from a source located outside India
  • Individuals who have profits from a business or profession which is not required to be computed under sections 44ADA, 44AD or 44AE, like income from a business, commission, brokerage, etc.
  • Individuals who make capital gains.
  • Individuals who generate income from more than one house properties.

If you are not sure that you’re eligible or not to file the ITR 4, then you should consult with a tax advisor like myonlineca

Learn ITR-4 Form Filing From Below Video

What is ITR 4 Form Structure in Income Tax

The ITR 4 form has two parts:

  • Part A: This part contains general information about the taxpayer, such as their name, address, PAN number, and date of birth.
  • Part B: This part contains information about the taxpayer’s income and deductions.

The income section of Part B is divided into five heads:

  • Salary: This head includes income from employment, such as salaries, wages, and pension.
  • House property: This head includes income from house property, such as rent and house property allowances.
  • Business or profession: This head includes income from business or profession, such as profits from trading, manufacturing, and professional services.
  • Capital gains: It includes the income of profits from the sale of assets, shares, bonds, and property.
  • Other sources: This includes income from the other sources such as interest, dividends, and winnings from lotteries, etc.

Part B contains a list of deductions that taxpayers can claim against their income. The list of deductions includes medical expenses, educational expenses, donations,etc.

When the taxpayer has completed Part A and Part B of the ITR 4 form,then they can calculate their tax liability and after this process the taxpayer pays his tax liability to the government.