ITR-4 Form Filling

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

The following taxpayers cannot fill form 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


Section 44AD

Income from business is calculated under section 44AD. Under this section, the expenses from the business are shown as subtracting from the income.  Section 44AD specially for small professional with the objective to simplify taxation, reduce compliance burden and facilitate the ease of doing business or profession.

Section 44ADA

Professionals with a gross income of 50 lakhs or less can file their returns under this section. Section 44ADA also includes freelancers who do technical assignments such as accountant, software developer, engineer, advocate, doctors, architectural professional, technical consultant etc.

Section 44AE

Section 44AE is for those small taxpayers carrying freight traffic who do not have more than 10 goods carriages. This section is to provide relief to these small taxpayers in tax. This scheme is designed for taxpayers who business of plying, hiring or leasing of goods carriages.

How Can Dial on Financial Service Help You?

Dial on financial service’s team can help to file your ITR Return. We will try our best to provide you a good service. We provide services at very low price compared to other service provider.

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