This guide provides detailed insights into the applicability, eligibility, and step-by-step process for filing ITR 4 for the financial year 2025-26. Stay compliant and avoid penalties by understanding the nuances of ITR 4 filing.
Understanding ITR 4
Eligibility Criteria
Deductions and Exemptions
Filing Process
FAQs on ITR 4 Filing
ITR 4 is designed for taxpayers opting for the presumptive taxation scheme under Sections 44AD, 44ADA, and 44AE.
Purpose of ITR 4
ITR 4 is used by individuals, HUFs, and firms (other than LLP) with income from business or profession.
Applicable for businesses with turnover up to ₹2 crore under Section 44AD.
Professionals with gross receipts up to ₹50 lakh under Section 44ADA.
Transporters with up to 10 goods carriages under Section 44AE.
Presumptive Taxation Scheme
This scheme allows taxpayers to declare income at a prescribed rate without maintaining detailed accounts.
8% of turnover for non-digital transactions under Section 44AD.
6% for digital transactions under Section 44AD.
50% of gross receipts for professionals under Section 44ADA.
Determine if you qualify to file ITR 4 based on your income sources and business structure.
Who Can File ITR 4?
ITR 4 is suitable for individuals, HUFs, and firms with income from business or profession under presumptive taxation.
Individuals with business income up to ₹2 crore.
Professionals with income up to ₹50 lakh.
Transporters with up to 10 vehicles.
Who Cannot File ITR 4?
Certain taxpayers are excluded from filing ITR 4.
Individuals with income exceeding ₹50 lakh.
Those with foreign assets or income.
LLPs and companies.
Maximize your tax savings by leveraging available deductions and exemptions.
Common Deductions
Utilize various sections of the Income Tax Act to reduce taxable income.
₹1.5 lakh under Section 80C for investments like PPF, ELSS.
₹25,000 under Section 80D for health insurance premiums.
Interest on education loan under Section 80E.
Worked Example
Illustrating tax savings using deductions.
Assume total income of ₹10 lakh.
Deductions claimed: ₹1.5 lakh under 80C, ₹25,000 under 80D.
Taxable income: ₹8.25 lakh, resulting in tax savings of ₹37,500.
Follow these steps to file your ITR 4 accurately and on time.
Pre-Filing Requirements
Gather necessary documents and information before filing.
Form 16A for TDS details.
Bank statements for income verification.
Previous year's tax return for reference.
Step-by-Step Filing
Detailed instructions for filing ITR 4 online.
Log in to the Income Tax e-filing portal.
Select 'ITR 4' from the dropdown menu.
Fill in the required details and upload documents.
Who is eligible to file ITR 4?
ITR 4 is applicable for individuals, HUFs, and firms (excluding LLPs) with income from business or profession under the presumptive taxation scheme. The turnover must not exceed ₹2 crore for businesses and ₹50 lakh for professionals.
What is the deadline for filing ITR 4 for FY 2025-26?
The deadline for filing ITR 4 for FY 2025-26 is July 31, 2026. It is advisable to file early to avoid last-minute hassles and penalties.
Can I claim deductions under Section 80C while filing ITR 4?
Yes, you can claim deductions under Section 80C up to ₹1.5 lakh for eligible investments such as PPF, ELSS, and life insurance premiums while filing ITR 4.
What happens if I miss the ITR 4 filing deadline?
If you miss the deadline, you can file a belated return by December 31, 2026, with a penalty of up to ₹5,000 under Section 234F. However, filing late may result in loss of certain benefits and deductions.
Is it mandatory to maintain books of accounts under presumptive taxation?
No, taxpayers opting for presumptive taxation under Sections 44AD, 44ADA, or 44AE are not required to maintain detailed books of accounts. However, they must maintain records of turnover and receipts.
Can LLPs file ITR 4?
No, LLPs cannot file ITR 4. This form is only applicable to individuals, HUFs, and firms (other than LLPs) opting for presumptive taxation.
What is the presumptive income rate for professionals under Section 44ADA?
Under Section 44ADA, professionals can declare 50% of their total gross receipts as income. This is applicable for professionals with gross receipts up to ₹50 lakh.
How do I verify my ITR 4 after filing?
You can verify your ITR 4 using Aadhaar OTP, net banking, or by sending a signed ITR-V form to the Centralized Processing Center (CPC) within 120 days of filing.