ITR-4 Return Filing

Under what conditions are one not required to file ITR-4?

ITR-4 is not required for people and HUFs that:

• Earned a total income of more than Rs. 50 lakh.
• Had their losses from prior years carried forward
• Is Authorised to sign at a location outside of India.
• Ever made any investments in unlisted equity shares at any point in the fiscal year
• Has overseas assets or has earned international money.
• Had earned a contribution in their income from more than one residential property
• Is registered as a director for a company.
• Is an RNOR or a non-resident.

Who is liable to file an ITR 4?

Individuals, HUFs, and partnership firms that fulfilled the following requirements in the previous year are required to file Form ITR 4:

• Section 44AD or 44AE business income
• Under section 44ADA, earnings from a profession
• Earned Rs 50 lakh in salary or pension income
• Earned an income of Rs 50 lakh from a single residential property 
• Income of Rs 50 lakh from other sources (excluding winning from lottery and income from horse races).

What is the structure of Form ITR-4?

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, 2022

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 that is required in this section is as follows:

• Cash or Mercantile accounting method used in the previous year.
• Were there any changes made to the accounting process? (Yes/No)
• Profit impact of departing from Section 145A’s accounting requirements in the previous year’s method of accounting, if any.
• What was the closing stock method used in the previous year?
• How much wasn’t credited to the profit and loss account?
• Due to applicable unmet conditions in relevant clauses, amounts debited to the profit and loss account are not permitted under Section 36.
• In payments that are prohibited by Section 37, amounts are deducted from the profit and loss account
• Section 40-prohibited deductions from profit and loss accounts
• Profit and loss accounts are debited to the extent prohibited by Section 40A.
• Sums that were previously prohibited under Section 43B but were authorized in the previous year
• The amount deducted from the prior year’s profit and loss statement but prohibited by Section 43B
• All outstanding amounts for Union Excise Duty, Service Tax, VAT/Sales Tax, and Any Other Taxes.
• According to Section 33AB or 33ABA, amounts are considered profits and gains.
• Profits subject to Section 41 taxation
• Prior period payments or deductions from profit and loss accounts

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

The 35 Schedules in Part B that outline total income and tax computation for income subject to total tax are listed below 

• 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 the 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

The process of submitting a Form ITR-4?

You have the option of submitting your ITR-4 Form offline or online.

Offline:

Only one of the following situations allows the ITR form to be submitted offline:

• The age of the taxpayer is 80 or more than that
• The person earns less than five lakhs per annum, and they are not eligible to get a refund in their Income Tax.

You can file the return offline:

• Through getting a return on actual paper
• By submitting a bar-coded return
• Income Tax Department provides an acknowledgement on submission of IRR

Online/Electronically

If you submit the ITR-4 electronically with a digital signature, an acknowledgment will be sent to the email address you have on file. The income tax website also allows you to download it directly.

After electronically transmitting the data and submitting the return’s verification, you must sign and send the Return Form ITR-V to Bangalore’s CPC office within 120 days of e-filing.

Remember that the ITR-4 is an annexure-less form, which means it does not require any attachments.

Frequently Asked Questions