January 18, 2023
Jasmine John

What is the ITR 4 and Who is it For?

The Income Tax Return (ITR) 4 form is used to file income tax returns by individuals and entities with income from businesses or professions. This form has been introduced in India since May 1, 2014. The ITR 4 helps simplify accounting processes by eliminating complex calculations while filing tax returns. It also helps you to get a monthly tax refund directly into your bank account within 3 days after submitting your income tax return through the NEFT facility provided by RBI Bank


ITR 4 is a form that you can use to file your income tax returns. It is also known as the Income Tax Return Ecosystem (ITRE).

It is available in English and Hindi, so it's easy for anyone who speaks either language to fill out the form.

Who is it For?

ITR 4 is for people with income from business or profession.

The Income Tax Act of 1961 (ITA) defines an individual as an individual who is not a company. A company is defined under Section 2(f) of the ITA as any body corporate and includes all kinds of joint ventures and other associations, whether or not they are incorporated in India.

Form 2A

You will have to declare your turnover and estimate your profits for the year. You can do this by filling out Form 2A, which has a question on it asking you what kind of profit you made during that period. This form is filled in by each business separately and then submitted together with ITR 4. The last two questions in the form ask whether any income has been earned from other sources such as rental income or interest on bank deposits etc., which are not included in calculating taxable income under section 80C(1)(b).

Using ITR 1 Form

If you are using ITR 1 form, then you will have to provide details of agriculture income earned by you or on your behalf during the financial year and the same can be reflected in the profit and loss account.

Use The Total Amount Of Agricultural Income Earned

If you are using ITR 4, then you need to mention agricultural income. However, if you are using any other form for filing the returns and your total income does not exceed ₹10 lakhs (₹100,000), then it's not necessary that all the accounts mentioned in Schedule A-1 of Form 10A would have been opened during the same financial year.

In this case only those accounts which were opened before April 1st of the current year will be considered as accounts opened during that financial year while other account types like life insurance policies etc., can be added only when they were opened after April 1st of current year

Mention The Net Profit From Business

Mention the net profit from business (after deducting expenses) and other incomes like interest, dividend, etc while filing ITR 4.

1. The gross total income less deductions under sections 80C, 80CCC, and 80CCD up to a maximum of Rs.1,50,000 can be given in this form.

Inclusions In The Total Income

The total income will then include gross total income less deductions under section 80C, 80CCC and 80CCD up to a maximum of Rs.1,50,000.

If the total income is more than Rs.1,50,000 then you will have to file ITR 2 or if it is less than Rs.1 lakh then you can file your ITR 1 as per your requirement but do not forget to deduct all deductions under section 80C/80CCC/80CCD which may be applicable in case of self-employed persons or those who are running their own business without any financial assistance from any other source including relatives and friends etc.,

Multiple Businesses

In the case of multiple businesses, it is not necessary that all businesses are eligible for the presumptive taxation scheme - only those businesses which fulfill the criterion mentioned above can opt for the presumptive taxation scheme.

1. Pre-tax income of more than Rs.20 lakhs (Rs.50 lakhs in case of individuals).

2. Taxable income less than Rs.50 lakhs (less than Rs.1 crore in case of individuals).

Businesses engaged in manufacturing or trading and/or any business having a turnover less than Rs 1 crore are not eligible to opt for a presumptive taxation scheme under Section 115JB(3)(a) of the Income Tax Act 1961

ITR 4 Helps Simplify Accounting Processes

ITR 4 is a simplified form that you can file your tax return using. You can use it for filing income tax returns, but it's not required to do so. This form is for people who have income from business or profession and have not been exempted under Section 80C of the Income Tax Act, 1961 (ITA).


The ITR 4 form is a simple, user-friendly, and easy-to-remember document. It helps you to file your income tax returns in the simplest manner with minimal effort and time. You can download the ITR 4 form from- or visit any of the Income Tax Offices of India for filling out this form online by yourself or through a registered software provider.


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