“What is ITR Form 4?”, Eligibility for Filing ITR Form 4, and ITR Form 4 Filing Process

Introduction

Individuals and Hindu Undivided Families (other than LLP) with income from their own business or profession must file their income tax returns using the ITR 4 form. On the e-Filing portal, registered users have access to the pre-filling and filing of Income Tax Return Form 4. Information such as “What is ITR 4 Form?”, ITR 4 Form Filing Process, and Entity that are eligible for Income Tax Return Form 4 is mentioned in this article.

What is ITR 4 Form?

In simple terms ITR Form 4 is used for an individual and HUF (other than Limited Liability Partnership) whose income is less than or equals to INR 50 Lakh. Income from a business or profession that is estimated under Sections 44AD, 44ADA, or 44AE. Income from a pension or salary, one residential property, and up to INR 5,000 in agricultural income can file form ITR 4.

Entity that are eligible for Income Tax Return Form 4

• Income for the FY not more than INR 50 Lakh
• Income from Business and Profession that is Calculated Under Sections 44AD, 44ADA, or 44AE on a Presumptive Basis
• Income from a pension or salary, one residential property, and up to INR 5,000 in agricultural income
• Other sources that come from (aside from lottery winnings and income from racehorses):
• Interest earned on savings
• Interest received from Bank, Postal, and Cooperative Society Deposits
• Income Tax Refund Interest
• Pension for Family
• Interest on increased compensation
• Additional Interest Income (e.g., Interest Income from unsecured loan)

Prerequisite for filing ITR Form 4

• A valid user ID and password
• Active PAN Card
• Associated PAN and Aadhaar (Individual taxpayers)
• Validate at least one bank account beforehand
• Valid mobile number associated with your bank, NSDL, CDSL, Aadhaar, or e-Filing portal (for e-Verification)
• Download the offline tool or use a third-party application (If using offline mode)

Entity that are not Eligible for Filing ITR Form 4

• A Resident but Not Ordinarily Resident (RNOR), and Non-Resident Indian who earns more than INR 50,000 per year from agriculture.
• Is a director of a company; receives revenue from more than one residential property;
  • Receives income from lottery winnings
  • Owns and maintains race horses
  • Or receives income subject to special tax rates under Section 115BBDA or Section 115BBE.
• Has deferred income tax on ESOP received from an employer being a qualified start-up and has held any unlisted equity shares at any time during the prior year.

Process for Filing ITR Form 4 

To file and submit the ITR online, simply follow these steps:

• User ID and password to login to the e-Filing portal.
• Click e-File > Income Tax Returns > File Income Tax Return from your Dashboard.
• Choose the assessment year, then click Continue.
• Click Proceed after selecting Online Filing Mode.
• To continue, select Status if it applies to you and click Continue.
• To choose the income tax return, you have two choices:
  • Select Help me pick which ITR Form to fill if you are unsure which ITR to submit, then click Proceed. You can proceed with filing your ITR after the system assists you in determining the correct ITR.
  • Choose I know which ITR Form I need to fill if you are certain which ITR you should submit. Click Proceed with ITR after selecting the appropriate Income Tax Return from the selection.
• Click Let’s Get Started after carefully reading the form’s instructions and noting the list of required papers.
• Click Continue after checking the relevant checkboxes.
• Review your pre-filled information and make any required changes. At the conclusion of each section, enter any extra or supplementary information if necessary and click Confirm.
• In the appropriate section, enter your income and deduction information. Click Proceed once you have finished and verified all of the form’s sections.
• Click Preview Return once the tax has been paid. You will be sent to the Preview and Submit Your Return page if there is no tax liability due or if there is a refund based on tax computation.
• Enter Place, check the declaration box, and click Proceed to Validation on the Preview and Submit Your Return screen.
• Click Proceed to Verification on your Preview and Submit Your Return page after it has been approved.
• Choose your preferred option and click Continue on the Complete your Verification page.
• You receive a success notice after e-verifying your return, along with the Transaction ID and Acknowledgement Number. Additionally, you will get a confirmation message on the email address and mobile number you entered with the e-Filing platform.

Conclusion

An individual, HUF, or any other firm, with the exception of LLP, must submit the ITR 4 Form. To avoid hefty penalties, it is essential to submit the ITR return form before the due date.