Learn how to file ITR 4 online for small businesses and professionals. Follow this step-by-step guide for seamless tax compliance under the presumptive taxation scheme.
Tax compliance can often be a complex and time-consuming process, especially for small businesses and professionals. However, the Indian government has introduced the ITR 4 form, also known as Sugam, to simplify the tax filing experience for these individuals. ITR 4 caters specifically to those who have opted for the presumptive taxation scheme under Sections 44AD, 44ADA, or 44AE of the Income Tax Act.
Here is a step-by-step guide to help you file ITR 4 in online mode:
Step 1: Register on the Income Tax Department’s e-filing portal Visit the official website of the Income Tax Department’s e-filing portal at https://www.incometax.gov.in/iec/foportal/. If you are a new user, click on the “Register Yourself” button and provide the required details to create an account. If you are an existing user, log in using your credentials.
Step 2: Select the Assessment Year and ITR Form After logging in, click on the “e-File” tab and select the “Income Tax Return” option. Choose the appropriate Assessment Year for which you want to file the ITR (e.g., A.Y. 2023-24). Select “ITR 4 – SUGAM” as the form for filing your return.
Step 3: Fill in the Personal Information Provide your personal details, including your name, PAN (Permanent Account Number), address, and contact information, in the relevant sections of the form.
Step 4: Enter Income Details Enter your income details in the relevant sections. ITR 4 is specifically designed for individuals and Hindu Undivided Families (HUFs) who have opted for the presumptive taxation scheme under Sections 44AD, 44ADA, or 44AE of the Income Tax Act. Provide the necessary information regarding your business or profession, gross receipts, and allowable expenses.
Step 5: Claim Deductions and Taxable Income In this step, you can claim deductions under various sections of the Income Tax Act to reduce your taxable income. Enter the relevant details in the respective sections of the ITR form.
Step 6: Compute Tax Liability and Pay Taxes (if applicable) After determining your taxable income, compute your tax liability based on the applicable tax rates. If you have any taxes due, pay them online through the e-filing portal using the available payment options.
Step 7: Verify the Information and Review the Return Review all the information you have provided in the ITR 4 form. Ensure that the details are accurate and complete. The e-filing portal may have in-built validations and error checks to help you rectify any mistakes or missing information.
Step 8: Submit the ITR Online Once you have reviewed and verified all the information, submit your ITR 4 online. Follow the instructions on the e-filing portal to complete the submission process.
Step 9: E-verify or physically verify the return: After Submitting return, you have the option to e-verify your return using Aadhaar OTP, Net banking, or other available methods. Alternatively, you can choose to physically verify the return by sending a signed copy of the ITR-V (Acknowledgement) to the Centralized Processing Center (CPC) within 30 days of filing.
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The author is an Income tax, Accounting and GST Practitioner and can be contacted at 9024915488.
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