Last updated: July 12th, 2023 12:29 PM

Form ITR 4 (Sugam) for AY 2020-21

Income Tax Return 4 (ITR 4) is a form for ITR filing which should be used by assessees having a business income. Only assessees who have opted for a presumptive taxation scheme should use Form ITR 4. A presumptive taxation scheme is a facility offered by the Central Board of Direct Taxes (CBDT) to assessees who meet the eligibility criteria as per Sections 44AD, 44ADA or 44AE. Assessees who opt for the scheme can declare a taxable income as a percentage of the turnover. Thus, the assessees opting for the scheme need not carry out the detailed procedure for calculation of business income, as mentioned in the Income Tax Act. ITR 4 is a simplified return intended for usage by assessees who have opted for a presumptive scheme. Assessees filing ITR 4 should undergo an audit in case the declared taxable income is lesser than the presumptive income. It is mandatory to file ITR 4 using the electronic mode. However, for assessees who are aged above eighty years, the return can be filed using a physical copy of ITR 4. All assessees who have opted for the presumptive scheme should file ITR 4 irrespective of the utilisation of the Basic Exemption Limit (BEL). On 3rd January 2020, the CBDT issued Notification G.S.R.9(E). The notification has introduced an additional restriction regarding the filing of ITR 4. The notification specifies that assessees who are jointly owning house property with more than one person should not opt for ITR 4. The impact of the notification is that assessees who are jointly owning house property with more than one person are not allowed to use ITR 4. The notification covers Assessment Years commencing from 2020-21.

Applicability

Form ITR 4