What is ITR 4S?

An ITR-4S Form is an Income Tax Return Form, that was introduced for the taxpayers who are running a business under presumptive schemes.

Note that the old ITR Form 4S has been merged with the current ITR 4 (Sugam form). 

Find out about the ITR-4S form here.

Who can file ITR-4S: -

ITR-4S can be filled only by Individual/ HUFs/ Partnership firms having following sources of income-

1. Business income mentioned in presumptive taxation scheme under section 44AD and/or 44AF of Income Tax Act, 1961.
2. Income from salary.
3. Income from only 1 house property.
4. Income from other sources like interest from a savings account, interest from fixed deposits, etc. except general incomes like a lottery, gambling, income from racehorse etc.

Who cannot file ITR-4S: -

Individuals/ HUFs/ partnership firms who are having following incomes cannot file ITR-4S form: -

1. Anyone who has, Income from more than one house property.
2. Previous year's brought forward loss from any house property.
3. Any Income from capital gains from the sale of shares, property, etc.
4. Income earned from speculative business.
5. Income earned from profession, commission, brokerage, agency etc.
6. Any Income from agricultural activities that is more than Rs. 5,000/-,
7. The Casual incomes like lottery, card games, horse race, etc.,
8. Income from a foreign source.
9. If a taxpayer wishes to claim double taxation relief under sections 90/90A/91 of Income Tax Act, 1961.
10. A resident taxpayer having any bank account or any other foreign asset like shares, property, etc. overseas.Some of the frequently used tax saving deductions are as follows-

There are a few deductions that can be claimed by under the sections mentioned below in ITR-4S form.

1. Sec. 80C- Life insurance, PPF, PF, NSC, tuition fees, specified mutual funds, etc.
2. Sec. 80CCC & CCD- Investment in pension funds and schemes of Central Government.
3. Sec. 80D- Health insurance & preventive medical check-up.
4. Sec. 80E- Interest payment of higher education loan.
5. Sec. 80G- Donation made to various funds and charitable institutions.
6. Sec. 80TTA- Savings bank & post office A/c. interest.

Schedules that a taxpayer is supposed to fill while filling ITR-4S Form are as follows: -

1. Schedule BP: Following particulars are required to be provided under this schedule and they are as follows-
2. Gross turnover or gross receipts, that is the total sales during a financial year.
3. Presumptive income under section 44AD. This income should not be less than 8% of sales mentioned above.
4. Presumptive income as per section 44AE.
5. In case of partnership firms, salary & remuneration paid to partners shall also be considered.
6. You need to provide 4 figures on 31st March of the financial year like, sundry debtors, sundry creditors, stock-in-trade and cash in hand.

You are not required to provide any other complex financials like a balance sheet or profit & loss account.

1. Schedule AL- This schedule is applicable if the total income of the taxpayer is more than Rs. 50 lakhs during a financial year.

Here, following details are required to be provided-

1. Details of immovable assets like land, building.
2. Information about movable assets like cash in hand, jewelry, vehicles, yacht, boats, aircrafts, etc.
3. Liabilities in relation to above-mentioned assets.
4. Details of advance & self-assessment tax paid.
5. Details related to TCS, according to Form 27D issued by tax collectors.
6. Details of TDS from salary as mentioned in Form 16 which is issued by the employer.
7. Details of TDS other than salary, which is TDS on interest from Fixed deposits according to Form 16A issued by deductors.

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