ITR-4: When can you use it?
- Are you an individual, Hindu Undivided Family (HUF), or firm, and is your business or professional income being declared under the presumptive taxation scheme?
- Is your total income equal to or less than ₹50 lakh during the financial year?
- Salary or pension
- Income from up to two house properties
- Income from other sources, including interest, family pension and dividend
- Agricultural income of up to ₹5,000
- Capital gains under Section 112A, subject to the applicable limit of ₹1.25 lakh
Who should file ITR-3?
- Are you an individual or HUF with business or professional income, and do you maintain books of account or not come under the presumptive taxation scheme?
- Is your total income more than ₹50 lakh, or do you engage in F&O trading?
- Salary or pension
- House property
- Profits and gains from business or profession
- Capital gains
- Income from other sources
ITR-3 vs ITR-4: What did the Income Tax Department say?
- Choose ITR-3: If you are an individual or HUF with business or professional income but do not opt for presumptive taxation, including cases where you maintain regular books of account, have total income above ₹50 lakh, or engage in F&O trading.
- Choose ITR-4: If you are an individual, HUF or firm opting for presumptive taxation of business or professional income, with total income of up to ₹50 lakh.
Disclaimer: This is only for informational and educational purposes. Please consult a qualified expert for the latest laws and regulations.