1. Who is eligible to file ITR-4 for AY 2022-23?
ITR-4 can be filed by a Resident Individual / HUF / Firm
(other than LLP) who has:
• Income not exceeding ₹50 Lakh during the FY
• Income from Business and Profession which is computed on a
presumptive basis u/s 44AD, 44ADA or 44AE
• Income from Salary/Pension, one House Property,
Agricultural Income (up to ₹ 5000/-)
• Other sources which include (excluding winning from Lottery
and Income from Race Horses):
o Interest from Savings Account
o Interest from Deposit (Bank / Post Office / Cooperative
Society)
o Interest from Income Tax Refund
o Family Pension
o Interest received on enhanced compensation
o Any other Interest Income (e.g., Interest Income from
unsecured loan)
2. Who is not eligible to file ITR-4 for AY 2022-23?
ITR-4 cannot be filed by an individual / HUF / Firm (Other than LLP) who:
• is a Resident Not Ordinarily Resident (RNOR), and non-Resident
Indian
• has total income exceeding ₹ 50 Lakh
• has agricultural income in excess of ₹5,000/-
• is a Director in a Company
• has income from more than one House Property;
• has income of the following nature:
o winnings from lottery;
o activity of owning and maintaining race horses;
o income taxable at special rates u/s115BBDA or Section
115BBE;
• has held any unlisted equity shares at any time during the
previous year
• has deferred income tax on ESOP received from employer
being an eligible start-up
• is not covered under the eligibility conditions for ITR-4
3. What are the changes in ITR-4 as compared to previous
years?
As compared to previous years, ITR-4 of AY 2022-23 has an
option where, you have to answer the below questions:
• Have you opted for new tax regime u/s 115BAC and filed Form
10IE in AY 2021-22?
Select Yes/No.
• Option for current assessment year?
Select Opting in now/Not opting/Continue to opt/opt out.
Please note that individual or HUF opting for new tax regime u/s 115BAC has to
mandatorily file Form 10-IE before due date of filing of return u/s 139(1).
After filing Form 10-IE, original return or revised return is required to be
filed mandatorily to avail the benefit of new tax slab u/s 115BAC and
Acknowledgement Number and date of filing Form 10IE are mandatory fields in
ITR-4.
4. What documents do I need to file ITR-4?
You will need to keep the below documents ready (as applicable) to file ITR-4:
• Form 16
• Form 26AS & AIS
• Form 16A
• Bank Statements
• Housing Loan Interest Certificates
• Receipts for Donation Made
• Rental Agreement
• Rent Receipts
• Investment premium payment receipts - LIC, ULIP etc.
5. What is the presumptive taxation scheme for users filing
ITR-4?
According to Sections 44AA of the Income Tax Act (1961), a person engaged in
business or profession needs to maintain regular books of accounts under
certain circumstances as per specific conditions. To relieve small taxpayers
from such compliance burden, the Income Tax Act has framed the presumptive
taxation scheme u/s 44AD, 44ADA and 44AE. A person adopting the presumptive
taxation scheme can declare income at a prescribed rate. The Act has laid out
presumptive taxation schemes (for ITR-4 users) as given below: ·
• Section 44AD: Computation of income on estimated basis in
the case of taxpayers (being a Resident Individual, Resident HUF, or Resident
Partnership Firm (other than LLP) engaged in certain business subject to
certain conditions.
• Section 44ADA: Computation of professional income on
estimated basis for Assessee being a resident in India and engaged in a
profession referred to in section 44AA (1) subject to certain conditions.
• Section 44AE: Computation of income on estimated basis in
the case of taxpayers (being an Individual, HUF, Firm (other than LLP) or any
other person being a resident or non-resident) engaged in the business of
plying, leasing or hiring goods carriages, who owns not more than ten goods
carriages at any time during the previous year.
6. Who is not eligible for the presumptive taxation scheme
of Section 44AD?
The scheme of Section 44AD is designed to give relief to small taxpayers
engaged in any business, except the following businesses:
• Business of plying, hiring, or leasing goods carriages
referred to in sections 44AE
• A person carrying on any agency business
• A person earning income in the form of commission or
brokerage (e.g., insurance agents)
• Any business whose total turnover or gross receipts exceeds
₹ 2 Crore
Apart from the above, a person who is required to maintain books of accounts as
referred to in Section 44AA (1) is not eligible for presumptive taxation scheme
u/s 44AD.
7. The gross receipts for my business in the year are more
than ₹ 2 Crore. Can I opt for presumptive taxation scheme of 44AD?
No. You can opt for the presumptive taxation scheme of section 44AD only if the
total turnover or gross receipts from your business do not exceed the limit
prescribed (i.e., ₹ 2 Crore).
8. I opted for the presumptive taxation scheme u/s 44AD for
my last filed ITR. If I don't opt for it any time in the next 5 years, what
will happen?
If you opt for presumptive taxation scheme then you are required to follow the
same scheme for the next 5 years. If you don't, the presumptive taxation scheme
won't be available for you for next 5 years. For example, you claimed to be
taxed on presumptive u/s 44AD for AY 2019-20, AY 2020-21 and AY 2021-22.
However, for AY 2022-23, let's say you did not opt for the presumptive taxation
scheme. In this case, you will not be eligible to claim benefit of presumptive
taxation scheme for next five AYs (AY 2023-24 to 2027-28).
9. Who can opt for presumptive taxation scheme of Section
44ADA?
The presumptive taxation scheme of Section 44ADA can be adopted by a resident
in India carrying on specified profession whose gross receipts do not exceed ₹
50 Lakh in a FY. Following professions are specified profession:
• Legal
• Medical
• Engineering or Architectural
• Accountancy
• Technical Consultancy
• Interior Decoration
• Any other Profession as notified by CBDT
10. I opted for presumptive income scheme of Section 44AD or
44ADA. Can I claim further deduction of expenses after declaring profit at
applicable rate under respective sections of gross receipts?
No, a person who opted for the presumptive taxation scheme is deemed to have
claimed all deduction of expenses. Any further claim of deduction is not
allowed after declaring profit at specified rate. However, you can claim
deductions under Chapter VI-A.
11. I opted for the presumptive income scheme of Section
44ADA. Do I have to pay Advance Tax in respect of income from profession
covered in Section 44ADA?
Yes. Anyone opting for the presumptive taxation scheme u/s 44ADA is liable to
pay 100% of Advance Tax on or before 15th March of the previous year. If you
fail to pay the Advance Tax by 15th March of previous year, you will be liable
to pay interest as per Section 234B and Section 234C. Any amount paid by way of
Advance Tax on or before 31st March will also be treated as Advance Tax paid
during the FY ending on that day.
12. I opted for presumptive taxation scheme of Section
44ADA. Do I need to maintain books of accounts as per Section 44AA?
If you are engaged in a specified profession as referred in Sections 44AA (1)
and opt for presumptive taxation scheme of Section 44ADA (declare income @50%
of the gross receipts), you are not required to maintain the books of accounts
in respect of specified profession (i.e., the provision of Sections 44AA will
not apply).
13. I opted for presumptive income scheme of Section 44AE.
Do I need to maintain books of accounts as per Section 44AA?
Section 44AA of the Income Tax Act, 1961 has provisions relating to maintenance
of books of account by persons engaged in Business / Profession. In case you
opt for the presumptive taxation scheme of Section 44AE, the provisions of
Section 44AA relating to maintenance of books of account will not apply.
14. I opted for the presumptive taxation scheme of Section
44AE. Do I have to pay Advance Tax in respect of income from business covered
in Section 44AE?
Yes, You will be liable to pay Advance Tax. There is no concession with
regard to the payment of advance tax if you opted for the presumptive taxation
scheme of section 44AE.
15. How do I compute income from a house property which is
partly self-occupied and partly let-out?
A House Property may consist of two or more independent units, one of which is
self-occupied and the remaining is used for any other purpose (i.e., let-out or
used for own business). Income from such property will be computed in the
following manner:
1. Part / unit which is occupied by you for your residence
throughout the year will be treated as an independent property and income from
such a part / unit will be computed in the manner as described in the ITR-4
user manual in case of a self-occupied property.
2. Part / unit which is let out will be treated as an
independent property and income from such a part/unit will be computed in the
manner as described in the ITR-4 user manual in case of let out property.
16. What is the tax treatment of unrealized rent that is
subsequently realized?
Any subsequent recovery of unrealized rent will be deemed to be your income
under the head Income from House Property in the year in which such rent is
realized (whether or not you are the owner of that property in that year). It
will be charged to tax after deducting a sum equal to 30% of unrealized rent.
17. Can my employer TAN be quoted in place of PAN?
No. PAN should never be quoted in the textbox where TAN is to be quoted, as the
purposes for which PAN and TAN are allotted are different. TAN is a unique
identification number which is allotted to parties who deduct or collect tax at
source. PAN is a unique identification number issued to keep a linking of the
transactions carried by a person like payment of tax, TDS / TCS credit, Return
of Income, Return of Wealth, correspondence with the Income Tax Department or
correspondence by the ITD, investments made by a person, loan taken by a
person, etc.
18. What is the due date of Filing ITR -4 for AY 2022-23 (FY
2021-22)?
For AY 2022-23 (FY 2021-22) the due date of filing of ITR-4 is 31st July 2022.
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