ITR 4 Form Filing

Follow the following steps to file the ITR-4 in India,

Step 1: Login to the Income Tax Portal

• Visit the official Income Tax e-Filing portal.
• Login using PAN, password, and Captcha code.

For first-time users:

• Link your PAN by entering PAN, Date of Birth, and OTP received on your registered mobile number.

For returning users:

• If you filed your ITR previously, you will be able to proceed directly to the filing dashboard.

Step 2: Select the Correct ITR Form

• Go to the ‘File Income Tax Return’
• Select the Assessment Year (e.g., AY 2024-25 for FY 2023-24).
• Choose ‘ITR-4’ as the applicable form.

Step 3: Fill General Information

• Enter personal details such as:
  • PAN, Name, Date of Birth
  • Contact details, Residential Status
• Select the type of filing – Original / Revised return.
• Choose your Tax Regime (New vs. Old Tax Regime.

Step 4: Report Business or Professional Income

• Enter total turnover or gross receipts for business or profession.
• Declare presumptive income:
  • 8% for cash transactions / 6% for digital transactions (for businesses under Section 44AD).
  • 50% of gross receipts for professionals (under Section 44ADA).
• If applicable, select the Nature of Business Code from the available options.
• Mention the Trade Name and provide a short business description.

For transporters (Section 44AE), report the number of vehicles and income per vehicle per month.

Note: Under presumptive taxation, books of accounts and detailed financial statements are not required.

Step 5: Report Other Income Sources

Apart from business income, declare any additional income sources, including:

• Salary Income (if applicable): Only if received along with business income.
• Income from House Property: Rental income, deductions for home loan interest.
• Other Income: Interest from savings accounts, fixed deposits, dividends, family pension.
• Capital Gains: Not applicable for ITR-4 (file ITR-3 if you have capital gains).

The system may auto-fetch interest and dividend income from Form 26AS, AIS, and prefilled data.

Step 6: Report Professional & Freelancing Income (Section 44ADA)

For self-employed professionals (doctors, lawyers, architects, consultants, etc.), follow these steps:

• Select Section 44ADA (presumptive taxation for professionals).
• Choose the appropriate Nature of Profession Code (from a list of 40+ categories).
• Declare at least 50% of gross receipts as income.

Professions eligible for 44ADA include:

• Legal (lawyers, advocates)
• Medical (doctors, dentists, physiotherapists)
• Engineering & Architecture\
• Accountancy, Technical Consultancy, Interior Designing
• Film Industry (producers, editors, actors, directors, singers, camera operators, etc.)

If actual expenses are more than 50%, file ITR-3 instead to claim deductions.

Step 7: Report Small Business Income (Section 44AD)

For business owners (traders, shopkeepers, manufacturers, service providers, etc.), follow these steps:

• Select Section 44AD for presumptive taxation.
• Declare at least 8% of turnover as profit (6% for digital transactions).
• Ensure that total sales do not exceed ₹3 crores if 95% of receipts are in online mode.

Step 8: Claim Deductions Under the Income Tax Act

To save tax, claim deductions under the following sections:

• Section 80C – Investments in PPF, LIC, ELSS, NSC, EPF (up to ₹1.5 lakh).
• Section 80D – Health insurance premiums for self and family.
• Section 80E – Education loan interest deduction.
• Section 80G – Donations to charities.
• Section 24(b) – Home loan interest deduction (up to ₹2 lakh).

Since ITR-4 is under presumptive taxation, business expenses cannot be claimed separately, but personal tax-saving investments can be deducted.

Step 9: Verify Tax Paid (TDS & Advance Tax)

• The system will auto-fetch TDS details from Form 26AS and AIS.
• Upload your Form 26AS to check if any TDS was deducted by clients or banks.
• If applicable, verify TCS (Tax Collected at Source) details for foreign travel, luxury purchases, or car purchases.

Step 10: Compute Tax Liability & Pay Tax

• The system automatically calculates total tax based on reported income and deductions.
• If you have any pending tax dues, pay online using:
  • Net Banking
  • Debit Card
  • Challan (ITNS 280)

Advance tax must be paid in one instalment by March 15 for presumptive taxation filers.

Step 11: Final Review & Submission

• Review all sections, cross-check prefilled details, and ensure correctness.
• The system auto-selects ITR-4 based on the information provided.
• Confirm your Tax Regime Selection (New vs. Old).
• Click ‘File Tax’ to submit your return.

Step 12: Verify Your ITR-4 Submission

ITR-4 filing is incomplete without verification. You must verify the return within 30 days, or it will be treated as invalid.

Verification Methods:

• Aadhaar OTP: Instant verification via Aadhaar-linked mobile number.
• Net Banking: Verify directly from the bank's website.
• Electronic Verification Code (EVC): Through bank/Demat account.
• Physical Verification: Send a signed ITR-V form to CPC, Bangalore via speed post.

Step 13: Confirmation & Refund Processing

Once successfully filed:

• You’ll receive a confirmation email and SMS from the Income Tax Department.
• If eligible for a refund, it will be credited to your bank account within 15-30 days (if e-verified).
• You can track refund status in ‘My Account’ → ‘Refund Status’ on the e-filing portal

Common Mistakes to Avoid While Filing ITR-4

Filing ITR-4 is easier than other forms, but errors can still lead to penalties or rejection. Below are common mistakes and how to avoid them:

• Selecting the Wrong ITR Form
• Incorrect Turnover Declaration
• Not Claiming Eligible Deductions
• Failing to Report Other Income Sources.
• Not E-Verifying ITR-4

Tax-Saving Tips While Filing ITR-4

• Invest in tax-saving schemes, such as PPF, ELSS, NSC, and NPS, under Section 80C.
• Claim Home Loan Interest Deduction: Up to ₹2 lakh under Section 24(b) of the Income Tax Act, 1961.
• Health Insurance Premium Deduction: Under Section 80D of the Income Tax Act, 1961.
• Opt for Presumptive Taxation: To avoid tax audits and reduce compliance burdens.

Why Choose Kanakkupillai for ITR-4 Form Filing?

Kankakkupillai is your go-to partner for ITR-4, offering knowledgeable support and guaranteeing a smooth and correct filing process. Our knowledgeable staff streamlines the tax procedure, saving you time and effort while assuring adherence to all relevant laws.

• Personalised Approach: At Kanakkupillai, we understand that every individual is different and that every individual's financial situation is unique. That's why we offer customized solutions for all. Our professionals will walk you through the filing process step-by-step. Our goal is to make filing taxes as stress-free as possible while ensuring that you take advantage of all the legal advantages.

• Expertise and Experience: Kanakkupillai's years of tax filing experience give you unparalleled knowledge. Our personnel are knowledgeable about the intricacies of ITR-4 and other associated tax Returns so that we can provide trustworthy guidance and support. 

• Timely Filing and Compliance: Filing your tax returns on time is important to avoid penalties and interest charges. Kanakkupillai ensures that your ITR-4 is filed within the deadlines. We make sure all the necessary documents are correctly submitted.

• Hassle-Free Process: We aim to simplify the tax filing process. Our platform and team make sure that the paperwork, calculations, and submissions are handled professionally.

• Transparent Pricing: At Kanakkupillai, we offer cost-effective and transparent pricing for our ITR-4 filing services. There are no hidden fees, and we ensure complete clarity on the costs involved.

• Peace of Mind: When you choose Kanakkupillai, you gain peace of mind knowing your ITR-4 filing is in the hands of professionals who care about your financial well-being. We ensure everything is done correctly on time.