The process of ITR-4 Return Filing typically includes the following key aspects:
- Applicability: ITR-4 is applicable to individuals, HUFs, and professionals opting for presumptive taxation scheme under sections 44AD, 44ADA, or 44AE.
- Presumptive Income Details: Taxpayers must provide details of presumptive income earned from business or profession, computed at a specified percentage of turnover or gross receipts.
- Income Details: The form requires details of income earned by the taxpayer from other sources, if any, during the financial year.
- Expenditure Details: Taxpayers must provide basic details of expenditures related to business or profession for computation of presumptive income.
- Tax Computation: Calculation of tax liability based on presumptive income, other income sources, and deductions claimed under various sections of the Income Tax Act.
- Filing and Verification: The completed form must be filed electronically on the Income Tax e-filing portal. It requires verification by the taxpayer or authorized signatory.
Advantages of ITR-4 Return Filing Filing ITR-4 offers several advantages to taxpayers:
- Simplified Taxation: Allows taxpayers to pay taxes based on presumptive income without the need for detailed accounting of profits and expenses.
- Reduced Compliance Burden: Simplifies tax filing process for small taxpayers and professionals, reducing administrative overhead.
- Claiming Deductions: Provides scope for claiming deductions under relevant sections to minimize tax liability.
Conclusion ITR-4 Return Filing is essential for individuals, HUFs, and professionals opting for presumptive taxation scheme under sections 44AD, 44ADA, or 44AE in India. It enables taxpayers to comply with income tax regulations, accurately report their income, claim deductions, and fulfill their tax obligations effectively. Understanding the process and requirements of ITR-4 filing ensures smooth compliance and avoids penalties for non-compliance.
