Who and How we can file ITR 4 Online?

When it comes to filing ITR, tax payers need to choose the right kind of form. The Income Tax Department in India has provided different kinds of forms for different categories of tax payers. Here we discuss what you must know about ITR 4.

What is ITR 4?

The other popular name of ITR 4 Form is Sugam form. This form has to be used by those tax payers who have opted for the presumptive income scheme under the Section 44AD, Section 44ADA and Section 44AE of the Income Tax Act. However, the individuals who earn more than Rs 2 crores through their business need to file Income Tax Return Form 3 (ITR 3). ITR 4 can be filed both online and offline. Here are the details on who can file ITR 4 and the process of filing the ITR 4.

Who can file ITR 4?

ITR 4 can be filed by those individuals, Hindu Undivided Families and Partnerships whose total income during the assessment year is from the following sources.

Income through business under section 44AD or 44AE

Income generated through profession that is listed under the section 44ADA

Salary or pension whose total value exceeds Rs. 50 lakhs per year

Income from the single house property that exceeds Rs. 50 lakhs

Income from winning lotteries or horse races if the income exceeds Rs. 50 lakhs per annum

Freelancers whose income does not exceed Rs. 50 lakhs per annum

Who need not file ITR 4?

Those individuals who make more than Rs. 50 Lakhs as income from their salaries, house, property or the other sources discussed above cannot use this form.

The person who is the director of a company and has made investments in unlisted equity shares cannot file the ITR through this form.

How to file ITR 4 online

You can file the ITR online electronically with your digital signature.

The data will be transmitted electronically and then the tax payer must submit the verification of the ITR in ITR-V Return Form.

When the ITR 4 form is submitted electronically through the online mode with digital signature, the Income Tax Department will send an acknowledgement to the registered email address of the tax payer. This acknowledgment can also be downloaded from the official website of the Department of Income Tax. Once you download the acknowledgment or get it in your email, you must send it to the CPC office of the Income Tax Department within 120 days of filing the form online.

How to file ITR 4 offline

Tax payers can file the ITR offline if they happen to meet any one of the following criteria.

If the tax payer is aged 80 years or more

If the income of the tax payer is less than Rs. 5 Lakhs and if the individual need not claim any refund in the ITR.

For filing the ITR 4 offline, the individual can take the following routes.

Furnish the ITR in a physical paper form.

Furnish the returns in a bar coded way.

Once you submit your ITR 4 through offline mode following the above mentioned ways, the Income Tax Department will send you an acknowledgement.