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-
- Business income mentioned in presumptive taxation scheme under section 44AD and/or 44AF of Income Tax Act, 1961.
- Income from salary.
- Income from only 1 house property.
- 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: -
- Anyone who has, Income from more than one house property.
- Previous year's brought forward loss from any house property.
- Any Income from capital gains from the sale of shares, property, etc.
- Income earned from speculative business.
- Income earned from profession, commission, brokerage, agency etc.
- Any Income from agricultural activities that is more than Rs. 5,000/-,
- The Casual incomes like lottery, card games, horse race, etc.,
- Income from a foreign source.
- If a taxpayer wishes to claim double taxation relief under sections 90/90A/91 of Income Tax Act, 1961.
- 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.
- Sec. 80C- Life insurance, PPF, PF, NSC, tuition fees, specified mutual funds, etc.
- Sec. 80CCC & CCD- Investment in pension funds and schemes of Central Government.
- Sec. 80D- Health insurance & preventive medical check-up.
- Sec. 80E- Interest payment of higher education loan.
- Sec. 80G- Donation made to various funds and charitable institutions.
- 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: -
- Schedule BP: Following particulars are required to be provided under this schedule and they are as follows-
- Gross turnover or gross receipts, that is the total sales during a financial year.
- Presumptive income under section 44AD. This income should not be less than 8% of sales mentioned above.
- Presumptive income as per section 44AE.
- In case of partnership firms, salary & remuneration paid to partners shall also be considered.
- 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.
- 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-
- Details of immovable assets like land, building.
- Information about movable assets like cash in hand, jewelry, vehicles, yacht, boats, aircrafts, etc.
- Liabilities in relation to above-mentioned assets.
- Details of advance & self-assessment tax paid.
- Details related to TCS, according to Form 27D issued by tax collectors.
- Details of TDS from salary as mentioned in Form 16 which is issued by the employer.
- 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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