The ITR-4 Form is the Income Tax Return is allowed only for Individual, HUF or a Partnership Firm, who opted for the presumptive income scheme as per Section 44AD, Section 44ADA & Section 44AE of the Income Tax Act. However, if the turnover of the business mentioned above exceeds Rs 2 crores i.e if Tax Audit is Applicable, the taxpayer will have to file ITR-3. ITR 4 Form is not applicable to a Company.
Who can file ITR 4
ITR 4 is to be filed by the individuals/HUF/ partnership firm whose total income of AY 2019-20 includes :
- Salary/pension having income up to Rs 50 lakh
- Business income under section 44AD or 44AE
- Income from profession calculated under section 44ADA
- Income from One House Property having income up to Rs 50 lakh (excluding the brought forward loss or loss to be carried forward cases under this head);
- Income from Other Sources having income up to Rs 50 lakh (Excluding winning from lottery and income from horse races).
Note:- Freelancers and bloggers engaged in the above profession can also opt for this scheme if their gross receipts don’t exceed Rs 50 lakhs.
Person not Eligible to File ITR 4
- As stated above this form is not applicable to Company
- Person having income from salary, house property or other sources above Rs 50 lakh cannot use ITR-4.
- An individual who is either a director in a company and has invested in unlisted equity shares cannot use ITR-4.
- ITR -4 is not applicable on the persons, who carry on business or profession of Income from commission ( either 194 H or 194D ) or brokerage or an agency business cannot file ITR-4S. And those person who are in the profession of legal, medical, engineering, architectural, accountancy, technical consultancy, interior designing etc
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