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File ITR 4 | FY 2022-23 (AY 2023-24)

Updated on: 23 Nov, 2023 01:22 AM

ITR-4 , is filed by professionals & businessmen who are filing their taxes in accordance with the presumptive scheme of taxation as per Section 44AD, Section 44ADA and Section 44AE. Every year new ITR forms are notified by the Income Tax Department with some changes.

Tax2win can help you select the right form while filing ITR for you. File ITR today.

What is ITR 4 (SUGAM) in the Income Tax Act?

The Income Tax Department has notified different ITR forms on the basis of the nature of income & class of people like ITR-1, ITR-2, ITR-3 etc. to file income tax returns.

ITR-4 is an income tax return form that is used by taxpayers who are running a business or profession and have opted for the presumptive taxation scheme under Section 44AD, Section 44ADA, or Section 44AE of the Income Tax Act.

However, if the turnover of the above mentioned businesses exceeds Rs. 2 crores, the taxpayer will have to file ITR-3.

Under this scheme, the taxpayer is not required to maintain detailed books of accounts and can declare income at a prescribed rate based on gross receipts. The applicable rates for different businesses and professions are provided in the Income Tax Act.

Download ITR 4

Budget 2023 Update

Category Previous limits Revised limits
Sec 44AD: For small businesses Rs. 2 crore Rs. 3 crore*
Sec 44ADA: For professionals like doctors, lawyers, engineers, etc. Rs. 50 lakh Rs. 75 lakh*

Please note:- This will be applicable from Fy 2023-24 (AY 2024-25)

What is the eligibility criteria for filing ITR-4?

  • The taxpayer should be an individual, HUF, or partnership firm.
  • The taxpayer should be a resident of India.
  • The taxpayer should have income from business or profession.
  • The taxpayer should have opted for the presumptive taxation scheme under Section 44AD, Section 44ADA, or Section 44AE.
  • The total income of the taxpayer should not exceed Rs. 50 lakh.
  • The taxpayer should not have income from more than one house property.
  • The taxpayer should not have income from capital gains except from the sale of assets mentioned in Section 44AD(1).
  • The taxpayer should not have any income from lottery, racehorses, legal gambling, or any other speculative business.

Who are not eligible to file ITR-4?

Here are some taxpayers who are not eligible to file ITR-4:

  • Companies
  • LLPs (Limited Liability Partnerships)
  • Individuals who have income from sources other than those eligible for the presumptive taxation scheme
  • Individuals who have income exceeding Rs. 50 lakhs in a financial year
  • Individuals who are either directors in a company or have invested in unlisted equity shares.

How to file ITR-4 Form?

Firstly we will download ITR Utility from link -

Part A: Personal Information & Filing Status

The first part of this form is related to the personal information of the assessee such as

  • Name,
  • PAN,
  • Address,
  • Date of Birth,
  • Aadhar no.
  • Email and
  • Mobile number, etc.

The next part shows the filing status of the return, i.e., whether it is a revised return or return in response to some notice issued by the income tax department or a return filed by the assessee himself or by any of his representatives and details of such representative.

Part B: Gross Total Income

Now comes the part for the calculation of Gross Total Income. It is the aggregate of income calculated under all different heads of Income.

Income from Business and Profession is calculated in the schedule on a presumptive basis based on the relevant section.

Income taxable under the head ‘Salary’: it is to be calculated the same as in the case of ITR-1. First, determine the monetary and non-monetary part of the salary and then deduct the allowance exempt under section 10. Then allow deduction under section 16, i.e., standard deduction, entertainment allowance, professional tax. To get the amount chargeable to tax under the head income from “Salaries.”

Income from House Property: Calculation of income from house property where maximum loss that can be set off in a period is limited to Rs. 2 Lakhs.

Other sources: Income from other sources can be calculated by specifying the source of such income from the drop-down list. After that, a standard deduction u/s 57 (iia) is available toward the family pension.

Part C: Deductions and Total Income

Now, allow for deduction under Chapter- VIA of the Income Tax Act 1961. The quantum of such deduction is based on the amount invested by the assessee.

Deductions and Total Income

Now, calculate the tax liability based on the income tax slab applicable to the income group of the assessee. And allow for Rebate u/s 87 A if income is less than Rs. 3.5 Lakh. And allow for Relief u/s 89 in respect of salary arrears received.

Schedule BP of ITR 4 – Sugam

The schedule for calculating Business Income is as follows:

  • The first set of presumptive income is for Business income under section 44AD.
  • Presumptive income of Profession is covered under section 44 ADA
  • And for goods carriage, the presumptive income is calculated under section 44 AE.
  • It also contains a column for information regarding Turnover/ Gross Receipt reported for GST.
  • After that, it also contains financial particulars for Business.
Schedule BP Schedule BP Schedule BP

Please enter details of Financial particulars in below screen

details of Financial particulars

TDS Schedule under Indian Income Tax Return form ITR 4

Part 19 is related to the Tax Deducted at source from salary. This schedule is populated using the Form 16 issued by the Employer. It incorporates details such as:

  • TAN of deductor,
  • Name of the employer,
  • Income under Salary, and
  • Tax deducted thereon.
20 TDS

Part 20 TDS 2(i) is for TDS on Income other than Salary as per the Form 16A furnished by the deductor.

20 TDS

And Part 20 TDS 2(ii) is for TDS on Rent and as per Form 16C TDS certificate for Rent.

Schedule IT of Income Tax Return Form ITR 4

Part 21 is for providing details regarding the payment Advance Tax during the year and self-assessment tax paid at the end of the period. This Schedule requires the assessee to fill the information given on the payment challan such as BSR Code, Serial Number of Challan, date of payment, amount, etc.

21 Sch IT

Schedule TCS of Income Tax Return Form ITR 4

TCS Schedule 22 consists of details regarding the Tax Collected at the source and as mentioned in the Form 27D issued by the collector.

22 Sch TCS

Part 21 is for providing details regarding the payment Advance Tax during the year and self-assessment tax paid at the end of the period. This Schedule requires the assessee to fill the information given on the payment challan such as BSR Code, Serial Number of Challan, date of payment, amount, etc.

Schedule – Taxes Paid and Verified of Income Tax Return Form ITR 4

In the next schedule, the total tax liability that the assessee is required to pay is automatically calculated. Such liability is calculated after considering the details furnished in the previous schedule. Net liability or refund is calculated by taking the difference of total tax paid from tax liability calculated based on income.

  • Column / Part 28 is for providing the bank account details of assessee held in India at any time during the previous year but not including the dormant accounts.
  • The above bank account details are followed by the Declaration regarding true and fairness of the information provided. And filing the return in the capacity of Self, Karta, Representative, and Partner.
  • If the Tax return Preparer prepares the return, the details of such TRP is to be provided along the amount to be paid to TRP.

Schedule 80G of Indian Income Tax Return Form ITR 4

The Last schedule is to calculate the total amount of deduction to be claimed under section 80G for contributions/ donations made to the charitable institutions.

  • The First two parts are for calculating deductions without any qualifying limit specified under the law. The listing is to be made as the donations eligible for 100% deductions and includes details of the donee and type of donation made.
  • After that donation eligible for a deduction of 50% of the donated amount.
    Schedule 80G
  • The next two parts i.e, C & D are for donations having qualifying limit as specified under the Income Tax Act 1961.
    Schedule 80G
  • Part E reflects the cumulative deduction amount claimed under section 80D.

Verification of ITR-4

After successful filing, the income tax return needs to be verified. The verification is required to be done within 30 days of filing ITR. It can be done online i.e. e-verification through an OTP (One Time Password) or EVC (Electronic Verification Code). Alternatively, the offline process can be followed by sending the signed copy of ITR V to CPC Bangalore. For more details refer to our guide on How to verify your Income Tax Return.

For further details on ITR forms Read More.

What are the different ways of submitting ITR4?

There are two options to file ITR-4 :

  • 1- Paper Form : It can be filed in a physical form or by furnishing bar coded return. Paper Form ITR is allowed in only in case of super senior citizen.
  • 2- Electronically : Return can be filed on the e-filing portal of Income Tax Department. After filing, return needs to be verified through
    • Digital signature or
    • Authenticating by EVC or
    • By sending ITR-V (duly signed) by post to CPC in 30 days
    Income Tax Return Form ITR 4

Frequently Asked Questions

Q- Do I need to file ITR-4 if my income is less than the threshold limit but total electricity bill paid during the year is Rs. 1,05,000/- ?

Yes, for FY 2022-23 ITR-4 needs to be filed in this case even if income is less than the threshold limit.

Q- Can I file ITR-4 if audit u/s 44AB is applicable to me?

ITR-4 is a simplified form which cannot be filed by the individuals to whom the audit is applicable.

Q- Am I eligible to file ITR-4 if I am a joint owner of house property?

For FY 2020-21 ITR-1 & ITR-4 cannot be filed by an individual who is a joint owner of a house property. For FY 2021-22 you can file ITR 4 in this case.

Q- What is Presumptive Income?

As the name suggests under presumptive method of taxation no actual computations for determining the profits or losses of the businesses are made. The turnover is reported and a certain percentage of it is taken as taxable income for the year. In case of business u/s 44AD minimum 6% of the business turnover is required to be reported as taxable income in case the transaction is undertaken through electronic modes and 8% otherwise. To learn more about presumptive income and taxation Read More.

Q- Is it compulsory to file the ITR4 form for 5 consecutive years once filed in a particular year?

If a taxpayer is opting for Presumptive scheme as per section 44AD then he/she shall have to file ITR4 for 5 consecutive years.

Q- The new ITR-4 is requiring GST as mandatory to file an ITR. But I have not registered under the GST. How should I file my ITR?

ITR 4 can also be filed if taxpayers are not registered under GST Law.

Q- What is the procedure if I submitted the ITR-4 form instead of an ITR-1 form?

If the wrong ITR Form has been filed , then the return is a defective return, to make it validate, file the revised return.The last date for revised return is the end of the 31st December

Q- I am a salaried person. I also deal in share trading. Which ITR should I file?

ITR Form will depend whether the taxpayer intends to show share trading as capital gain or Business Income.

Q- Which ITR (1 or 4) form has to be filed if a doctor gets a salary from a private hospital and also receives the form 16A?

Doctor needs to file ITR 4 if he received form 16A then he should be filed ITR 1

Q- How should I file an ITR-4 if the only income I have comes from tuition and house rent?

Taxpayers can consider his tuition income as business covered u/s 44ADA, and can file his return accordingly.

Q- Can I file the ITR 4 under 44ADA if I filed the ITR 3 last year which was the first year of filing? The 5 years limit is for 44ADA as well.

Yes, Taxpayers can file ITR 4 if she/he filed ITR3 last year and the limit of 5 years is not applicable on Sec. 44ADA

CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.