Statutory filings in Selaiyur
Form ITR-4 is used for filing Income Tax Return by those taxpayers who have opted for the presumptive income scheme under Sections 44AD, 44ADA and 44AE of the Income Tax Act, 1961. This is, however, subject to the business turnover limit of INR 2 crores, exceeding which the taxpayer would be required to file ITR-3. Presumptive Taxation scheme is a scheme that exempts the small taxpayers from maintenance of books of accounts.
Eligible to file Form ITR 4
Form ITR-4 is required to be filed by those individuals whose income comes from the following sources:
- Business Income under Section 44AD/Section 44AE
- Income from profession as per Section 44ADA
- Income up to INR 50 lakhs from Salary/Pension
- Income up to INR 50 lakhs from One House Property (does not include brought forward loss or loss to be brought forward under this head)
- Income from other sources up to INR 50 lakhs (does not include winning from lottery or horse races)
- Form ITR-4 can also be filed by freelancers in case their income does not exceed INR 50 lakhs.
Features Of Presumptive Taxation Scheme
- There is no requirement of maintenance of books of accounts
- The net income is estimated to be 8% of gross cash receipts. However, for payments received via digital mode, the net income is assumed to be 6% of such gross receipts.
- Deduction of any business expense against this income is not allowed.