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ITR-4 Form Filing
ITR 4 form is useful for individuals who do business or who earn through profession. This form is applicable to all type of business, undertakings or occupations, with no limit on earned income. This form can be used by any person or Hindu Undivided Family (HUF) to file their income tax returns. If the turnover of the business mentioned above exceeds Rs. 2 crore, the taxpayer will have to file ITR-3.
ITR 4 applicable to the following taxpayers
- Individuals whose income from agriculture is less than Rs. 5000.
- Those individuals who earn income from any business or profession.
- Individual who have no property in countries other than India.
- Individuals earning income from single housing estate. One house property having income up to 50 lakh.
- Income from other sources having up to Rs. 50 lakh.
Who cannot file ITR- 4
- An individual who is either a Director in a company and has invested in unlisted equity shares.
- Individual who earn income from salary, house property or other sources above Rs. 50 lakh.
- Partnership firm, individual or HUF whose books of accounts should be audited under Income Tax act 1961.
Major Changes in ITR -4 for the Assessment Year 2020-21
- Reduced the presumptive income from 8% to 6%.
- In section 44AD one new clause has been added as the electronic mode in addition to electronic clearance.
- If the Aadhar number is provided then PAN number is made optional in ITR-4.