ITR-4(SUGAM)

This article will aid users to understand Income Tax Return Form i.e. ITR-4. This article will provide details on who can use this form, who cannot use ITR-4, what are prerequisites for filing this form, Various schedules of this form and various slab rates applicable for business.

ITR-4 can be filed online by log on to Income Tax Portal. Refer link>> https://www.incometax.gov.in/iec/foportal.

ITR-4 can be filed by using offline utility which can be downloaded from the link >> https://www.incometax.gov.in/iec/foportal/downloads/income-tax-returns

Due Date for filing ITR-4 for F.Y. 2021-22 & A.Y. 2022-23 is 31st July, 2022.

Table of Contents

Who can use ITR-4

Individuals or HUF with a total Income of up to INR 50,00,000 having income from salaries, one house property, other sources, and agricultural income up to Rs.5,000 and have income from business & profession computed on presumptive taxation basis under section 44AD/ 44ADA/ 44E.

Who cannot use ITR-4

Person who is Director in any company
Person who has held any unlisted equity shares at any time during the previous year
Person who has any asset (including financial interest in any entity) located outside India
Person who has signing authority in any account located outside India
Person who has income from any source outside India
Person whose tax has been deducted u/s 194N
Person whose ESOP payment or deduction of tax has been deferred
Person who has brought forward loss or loss to be carried forward under any income head

Perquisites for filling ITR-4/ Business tax filing

User must be registered on e-filling portal.
Link Aadhaar Number and PAN on e-filling portal in case of proprietorship, add authorized signatory details and validate Digital Signature Certificate for that signatory
It is mandatory to have at least one pre-validated bank account
Nominate pre-validated bank account for refund
Books of Accounts (Balance Sheet & Profit & Loss Account including Schedule of Fixed Assets and other relevant Schedules)
Interest Certificates from the Post offices and Banks
Download Form 26AS and Annual Information Statement
Loan statements from the NBFC or the Bank
Bank Account Statements for relevant period
Creditor/Debtor/Stock Confirmation
Advance Tax Challans

Sections of ITR-4

ITR-4 Form has 5 Sections:

Personal Information – Usually prefilled from profile information updated on IT portal. This information if needs to be updated than the same has to be updated on Pro file of IT Portal. Please verify the details filled and ensure all the mandatory star marked details have been filled.
Gross Total Income – Income from Business & Profession, Salary, House Property, Other Sources and Exempt Income. Few information such as details on which TDS has been deducted get pre filled in the return. However, taxpayer to check the accuracy and completeness of such information and can add additional details of income not appearing such as agriculture income or any other income.
Disclosure – Update details of financial particulars related to presumptive business, GST turnover and exempt income.
Total Deductions – Deduction can be added of Chapter VI which assessee has to avail.
Tax Paid – It comprises of following details:
- TDS from Salary / Other than Salary as furnished by Payer (mostly gets Prefilled)
- TCS (mostly gets Prefilled)
- Advance Tax (mostly gets Prefilled)
- Self-Assessment Tax (This needs to added bases on Tax payment made by assessee)
Total Tax Liability – Assessee has to review the Net tax liability basis the details filled in above sections.

Applicable Slab Rates on Business

For detail understanding of —-> Business tax return filing is income tax return with additional filing of TDS return, Advance Tax Payment, GST Return, PF/ESI payments for businesses which needs to be filled every year. This return includes information on earnings and expenditures of that particular business. It further includes information of Assets and liabilities of a business.

Tax returns permit tax payers to calculate the tax payments schedule, tax liability and tax refund in in case of overpayment. Different countries have different tax return filing policies and features, but the time frame is commonly on an annual basis. Business tax return for an Businesses business or a company with an income in par or more than the exempted limit as specified by government must file taxes annually. Income includes wages, interests, dividends, capital gains, and profit. This documentation is filed with a taxing authority following the guidelines.

Refer link https://www.taxledgeradvisor.com/business-tax-filling/

Need Expert Assistance for ITR-4 filing

For expert assistance on ITR-4 return filling in Udaipur and Rajasthan, reach our professionals at Tax Ledger Advisor.