How to File ITR-4 Under Income Tax Act 1965?

How to File ITR-4 Under Income Tax Act 1965?

File ITR-4 Under Income Tax Act 1965 Guide
File ITR-4 Under Income Tax Act 1965 Guide

Filing Income Tax Returns
(ITR) is a crucial responsibility for taxpayers in India. Among various forms, ITR-4 is designed specifically for individuals, Hindu Undivided Families (HUFs), and firms (other than LLP) who opt for the presumptive income scheme under Section 44AD, Section 44ADA, and Section 44AE of the Income Tax Act, 1965. This comprehensive guide will walk you through the process of filing ITR-4, covering everything from eligibility criteria to step-by-step filing instructions.

Introduction to ITR-4

The ITR-4 form is specifically designed for individuals, HUFs, and firms opting for the presumptive taxation scheme. This scheme simplifies the tax calculation process, allowing taxpayers to declare income at a prescribed rate without maintaining detailed books of accounts.

 Eligibility Criteria

Who Can File ITR-4

- Individuals, HUFs, and firms (other than LLPs) who are residents of India.

- Taxpayers engaged in business or profession under the presumptive income scheme of Section 44AD, Section 44ADA, or Section 44AE.

- Businesses with a turnover or gross receipts up to ₹2 crores.

- Professionals with gross receipts up to ₹50 lakhs.

- Owners of goods carriage vehicles not exceeding ten vehicles at any time during the year.

 Who Cannot File ITR-4

- Taxpayers with income from capital gains.

- Non-residents or residents not ordinarily resident.

- Individuals earning income from salary, house property, or other sources not covered under the presumptive scheme.

- Individuals who hold directorship in a company or have invested in unlisted equity shares.

Understanding Presumptive Income Scheme

The presumptive income scheme under the Income Tax Act provides relief to small taxpayers by simplifying their tax computation process.

Section 44AD

Applicable to small business owners, Section 44AD allows them to declare income at 8% of turnover or gross receipts (6% if receipts are through digital modes). 

Section 44ADA

This section is for professionals such as doctors, lawyers, architects, etc., who can declare 50% of their gross receipts as income under this scheme.

Section 44AE

Applicable to taxpayers engaged in the business of plying, hiring, or leasing goods carriages, this section allows them to declare income on a per-vehicle basis.

Documents Required

  1. PAN card
  2. Aadhaar card
  3. Bank account details
  4. Form 16 (if applicable)
  5. Receipts of expenses claimed
  6. Details of turnover/gross receipts
  7. Financial statements (optional under presumptive scheme)

Detailed Filing Process

Gather Necessary Information

Collect all relevant documents and information required for filing ITR-4. This includes personal details, income details, and documents supporting deductions and exemptions.

 Log in to the Income Tax Portal

Access the official Income Tax e-filing portal ( and log in using your PAN and password.

Select the Appropriate Assessment Year

Choose the assessment year for which you are filing the return. For instance, for income earned in the financial year 2023-24, select AY 2024-25.

Fill in Personal Information

Enter your personal details such as name, address, PAN, Aadhaar number, and contact information.

Provide Income Details

Input details of your business or professional income as per the presumptive scheme. Ensure accurate reporting of turnover/gross receipts and corresponding income as per Section 44AD, 44ADA, or 44AE.

Declare Deductions

Declare deductions under various sections like 80C (investments), 80D (medical insurance), 80G (donations), etc. Provide supporting documents where necessary. 

Calculate Tax and Verify

The system will automatically calculate your tax liability based on the provided information. Verify the calculations to ensure accuracy.

 Submit and E-Verify

After verifying all details, submit your ITR. Complete the e-verification process using Aadhaar OTP, net banking, or other available methods.

 Common Mistakes to Avoid

- Incorrect personal information such as PAN, Aadhaar, or bank details.

- Misreporting income details or claiming incorrect deductions.

- Failing to e-verify the return, leading to non-submission of the ITR.

- Overlooking changes in tax laws and provisions applicable for the assessment year.

 Post-Filing Activities

 Acknowledgment Receipt

After successful submission and e-verification, download the acknowledgment receipt (ITR-V) for your records.

 Rectification and Revisions

If you discover any errors after filing, you can rectify or revise your return. Use the rectification option on the e-filing portal to correct mistakes.

 FAQs on ITR-4

Q1: Can I file ITR-4 if I have income from salary?

A1: No, ITR-4 is not applicable for individuals with income from salary. Use ITR-1 or ITR-2 instead. 

Q2: What if my turnover exceeds ₹2 crores?

A2: You cannot use the presumptive scheme under Section 44AD. You will need to maintain books of accounts and file ITR-3 or ITR-5.

 Q3: Is e-verification mandatory?

A3: Yes, e-verification is mandatory to complete the filing process. Without it, your return is considered incomplete.


Filing ITR-4 under the Income Tax Act 1965 is designed to simplify the tax filing process for small businesses and professionals. By following the guidelines and avoiding common mistakes, taxpayers can ensure a smooth and hassle-free filing experience. Stay informed about tax provisions and maintain accurate records to benefit from the presumptive taxation scheme. 

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