ITR-4 Return

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ITR-4 Return

₹12899
₹ 9899 One Time Payment
  • Presumptive Income
  • E-filing
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ITR-4: Overview

Who Should Use It: ITR-4 is applicable for individuals, Hindu Undivided Families (HUF), and firms (other than LLPs) who are residents and have income from business and profession, or who are eligible for the presumptive taxation scheme under Section 44ADA.

Eligibility Criteria:

    • Income from a profession referred to in section 44AA(1) (e.g., accountancy, interior decoration).
    • Total income up to ₹50 lakh.
    • Income from salary, pension, one house property, and other sources is permissible, provided the total income does not exceed the specified limit.

Key Features

Presumptive Income: Taxpayers can declare their income on a presumptive basis, i.e., 50% of gross receipts for professionals, and 8% or 6% of gross receipts for business under the presumptive taxation scheme.

E-filing: The return can be filed online or through a tax professional.

Form Structure

  1. Personal Details: Name, PAN, address, contact details.
  2. Income Details:
    1. Income from Business and Profession
    2. Other Sources (Interest, dividends, etc.)
  3. Deductions: Deductions under Chapter VI-A (Section 80C, 80D, etc.).
  4. Tax Computation: Calculate total income, tax liability, and any rebates or reliefs.
  5. Verification: Sign and verify the return.

Important Sections

  • Section 44ADA: Provides a presumptive taxation scheme for professionals with gross receipts of up to ₹50 lakh.
  • Section 80C: Deduction for investments in specified financial instruments.

Filing Process

  • Prepare the Form: Gather necessary documents (income statements, TDS certificates, etc.).
  • Log In to the Portal: Access the Income Tax e-filing portal.
  • Select ITR-4: Choose the appropriate assessment year and fill in the details.
  • Submit: Review and submit the return, and download the acknowledgment receipt.

Key Dates

Due Date: Generally, the due date for filing ITR-4 for individuals and firms is July 31 of the assessment year.

Common Mistakes to Avoid

  • Incorrect details in personal information.
  • Not claiming eligible deductions.
  • Failing to verify the return after filing.

Resources

Income Tax Department Website: Access forms, instructions, and updates.

Tax Professionals: Consider consulting a tax advisor for personalized guidance.

Detailed Structure of ITR-4

1. Personal Information

  • Name: As per PAN.
  • PAN: Permanent Account Number.
  • Date of Birth: Required for individuals.
  • Address: Complete address, including city and state.
  • Mobile Number and Email ID: For communication and updates.

2. Income Details

  • Income from Business or Profession:
    • Specify gross receipts and calculate presumptive income.
    • Declare if opting for Section 44ADA (50% of gross receipts).
  • Income from Salary/Pension: Enter salary details, including deductions for provident fund, etc.
  • Income from House Property: Details of rent received, municipal taxes paid, and income calculation.
  • Income from Other Sources: Include interest, dividends, and any other income.

3. Deductions

  • Fill in deductions under Chapter VI-A:
    • Section 80C: Deductions for investments in life insurance, PPF, ELSS, etc.
    • Section 80D: Deductions for health insurance premiums.
    • Other deductions: Section 80E (interest on education loan), Section 80G (donations), etc.

4. Tax Computation

  • Total Income Calculation: Sum up all income sources and subtract deductions.
  • Tax Liability: Calculate tax based on applicable slab rates.
  • Rebate Under Section 87A: Available for individuals with total taxable income up to ₹5 lakh.

5. Payment of Tax

  • Mention TDS deducted and any advance tax paid.
  • Calculate any outstanding tax payable or refund due.

6. Verification

  • Signature: Digital signature or physical signature if filed manually.
  • Verification options: Aadhaar OTP, EVC, or sending a signed ITR-V to the tax department.

Common Issues Faced During Filing

  • Incomplete Data: Missing or incorrectly entered details can lead to processing delays.
  • Mismatched TDS: Ensure that TDS shown in Form 26AS matches the income reported in the return.
  • Wrong Deductions: Misclaiming deductions can lead to penalties or re-assessment.
  • Filing After Due Date: Late filing incurs penalties and interest on tax due.
  • Incorrect Bank Details: Essential for refunds; ensure bank account number and IFSC code are correct.

Important Points to Remember

  • Keeping Records: Maintain all supporting documents for income and deductions.
  • E-filing Acknowledgment: After submitting, save the acknowledgment for future reference.
  • Amendment of Return: If errors are found post-filing, the return can be revised within the specified time.

Additional Resources

  • Income Tax Department Portal: Income Tax E-filing.
  • ITR-4 Form Download: Available in PDF format on the IT portal.
  • User Manuals: Detailed guidelines are provided for each section on the IT portal.
  • Tax Helpline: Reach out to the Income Tax Department for any queries related to filing.

Filing Assistance

  • Tax Consultants: Engaging a tax professional can simplify the process, especially for those unfamiliar with tax laws.
  • Online Tax Filing Services: Platforms like Cleartax, H&R Block, and others offer user-friendly interfaces for filing tax returns.

Filing Timeline

  • Pre-Filing Preparation: Start gathering documents and information as soon as the financial year ends (April).
  • Filing Deadline: For individuals and small businesses, the deadline is typically July 31.
  • Follow-Up: Check the status of your return and any refund through the income tax portal.

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