Who is not required to submit this Form?

ITR-4 is not an option for the people and HUFs listed below:

If the entire amount of income earned exceeds Rs. 50 lakh.
If any losses from prior years have been carried forward.
If the person is authorised to sign at a location outside of India.
Whether there are ever any investments made in unlisted equity shares at any point in the fiscal year.
If someone has overseas assets or has earned international money.
If more than one residential property has contributed to the income.
If the person works as a director for a corporation.
If the person is an RNOR or a non-resident.

Who must submit an ITR 4?

Individuals, HUFs, and partnership firms that had the following total annual income in AY 2020–21 are required to file Form ITR 4:

Section 44AD or 44AE business income
Earnings from a profession as determined under section 44ADA
Up to Rs 50 lakh in salary or pension income
Income from a single residential property earning up to Rs. 50 lakh (excluding the brought forward loss or loss to be carried forward cases under this head)

Up to Rs 50 lakh in income from other sources (excluding winning from lottery and income from horse races).

Organizational structure ITR 4 is broken down into the following sections:

General: Part A

Name Initials
The PAN number
Office address
Additional personal details
Document status
Accounting Information
Business nature

Part A-BS – Balance sheet of the proprietary business or profession as of March 31, 2017

The following details must be provided in this section:

Income sources
Spending of funds
Provide the following information if regular books of accounts are not kept:
total number of different borrowers
the sum of all unsecured creditors
Quantity of all stock-in-trade
Amount of the remaining cash

Profit and Loss Account, Part A

The following information must be completed under this section:

Profit and loss account credits:
Debits to the profit and loss account
Tax and appropriations provision

The following must be provided if there are no regular books of account, business, or profession:

Gross revenue
Costs of gross profit
Net income

Other Information, Part A-OI

The information required in this area must include the following:

The accounting method used the previous year: Cash or Mercantile.
Has the process of account changed at all? (Yes/No)
Effect on profit due to, if any, a departure from Section 145A's accounting requirements in the method of accounting used the previous year.
The closing stock value method was used the prior year.
Uncredited amounts to the profit and loss account
Amounts debited to the profit and loss account are not permitted under Section 36 because relevant clauses' applicable conditions weren't met.
Amounts deducted from the profit and loss account in the payments that Section 37 prohibits
Sums deducted from the profit and loss account that are prohibited by Section 40
To the extent prohibited by Section 40A, amounts are debited to the profit and loss account.
Any sum that was previously forbidden under Section 43B but was authorised the year before
Any money deducted from the prior year's profit and loss statement but forbidden under Section 43B
Credit balance remaining on the accounts for Union Excise Duty, Service Tax, Vat/Sales Tax, and Any Other Taxes, as well as the total balance due
Amounts are considered profits and gains under Section 33AB or 33ABA.
Any profit subject to taxation under Section 41
The amount paid or deducted from the profit and loss accounts for a prior period.

Quantitative information, Part A-QD

You must provide the following information: In the event of a trade issue:

stock opening
Acquisition made the previous year
The prior year's sales
Final stock
Lack of surplus

When it comes to a manufacturing company:

Stock opening

By-products and finished goods

Outline total income and tax computation for income subject to total tax in Part B. The 35 Schedules listed below are included in this part:

Schedule TI - Total Income Calculation
Section TTI - Calculating the Tax Owed on the Total Income
Schedule S - Details of Salary Income
Schedule HP - Details of House Property Income
Schedule BP - Calculation of Business or Profession Income
Schedule DEP - Summary of Depreciation in Assets:
Schedule ESR: Section 35, 35CCC, or 35CCD Deduction
Schedule CG: Capital Gains
Schedule OS - Other Sources of Income
Schedule CYLA: Income details after current year losses have been offset
Schedule BFLA: Details of income after set-off of brought-forward losses from prior years
Schedule CFL: Details of losses to be carried forward to subsequent years
Schedule UD (4): Unabsorbed depreciation and allowance under Section 35
Schedule 10A - Section 10A Deduction
Schedule 80G - Information on Donations Eligible for Section 80G Deduction
Schedule 80-IA - Section 80-IA Deductions
Schedule 80-IB - Section 80 IB Deductions
Section 80-IC or 80-IE deductions are listed on Schedule 80-IC or 80-IE.
Schedule VI-A - Deductions under Chapter VI-A
Schedule AMT: Computation of Alternate Minimum Tax Payable Under Section 115JC
Schedule AMTC: Section 115JD Tax Credit Calculation
Schedule SPI - Income of particular persons includable in assessee's income
Schedule SI - Income subject to special rates of tax
Schedule IF: Information on the partnership firms in which you are a partner
Schedule EI - Exempt Income Information
Schedule FSI: Information on foreign income and tax benefits
Schedule TR: A summary of tax relief claims made for taxes paid outside India.
Schedule FA: Information on foreign assets and foreign-sourced income
Schedule 5A: Information on the distribution of income between spouses under the Portuguese Civil Code
Schedule AL: Assets and Liabilities at Year's End

Frequently Asked Questions

Can I also submit my ITR 4 offline?

Yes, but only if the following conditions are met: a) The taxpayer is 80 years of age or older; b) the taxpayer has an annual income of less than Rs 5 lakh and is not required to make an income tax refund claim.

Can I deduct other expenses and depreciation if I use the presumed scheme?

No, a person cannot claim depreciation or any other expense if they are paying tax at the rate of 8% following Section 44AD.

I chose the Section 44ADA presumptive taxation plan. Do I have to keep books of accounts following Section 44AA?

You are not required to keep the books of accounts relating to the designated profession if you choose to use the presumptive taxation scheme of Section 44ADA (declare income at 50% of the gross receipts) and are engaged in the defined profession as described in Section 44AA (1). (i.e., the provision of Sections 44AA will not apply).

What happens when unrealised rent is later realised in terms of taxes?

Any additional unrealised rent recoveries will be counted as part of your income under the heading Income from House Property in the year that the rent is realised (whether or not you are the property owner in that year). It will be taxed after deducting a sum equivalent to 30% of the unrealised rent.

ITR 4 Return Filing

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