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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 :
  1. Salary/pension having income up to Rs 50 lakh
  2. Business income under section 44AD or 44AE
  3. Income from profession calculated under section 44ADA
  4. 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);
  5. 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
  1. As stated above this form is not applicable to Company
  2. Person having income from salary, house property or other sources above Rs 50 lakh cannot use ITR-4.
  3. An individual who is either a director in a company and has invested in unlisted equity shares cannot use ITR-4.
  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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