Answer

1. F

   Facts

   ITR-4 is for resident individuals, HUFs and firms other than LLPs with total income up to ₹50 lakh who declare business or professional income on the presumptive basis under Sec 44AD, 44ADA or 44AE. It can also include salary, one house property, interest and limited long-term gains on listed equity.

2. P

   Provisions and law

   • Sec 44AD (now Sec 58)Presumptive business income at 6% of digital and 8% of other receipts for eligible businesses
   • Sec 44ADA (now Sec 58)Presumptive professional income at 50% of gross receipts
   • Sec 44AE (now Sec 58)Presumptive income for goods carriages, up to 10 vehicles
   • Rule 12, Income-tax Rules 1962 (now Rule 164)Prescribes return forms and who may use them
3. A

   Analysis

   Check four things: you are resident, total income is within ₹50 lakh, you choose presumptive income, and none of the bars apply. A shop owner with ₹80 lakh turnover, salary from a part time job and FD interest can use ITR-4. Someone with ₹2 lakh of short-term share gains cannot, because short-term capital gains are not allowed in ITR-4. When in doubt, ITR-3 covers everything but needs more detail.

4. C

   Conclusion

   1. 1Confirm residential status and total income under ₹50 lakh
   2. 2Confirm you will declare presumptive income
   3. 3Check the bars: director, unlisted shares, foreign assets, capital gains beyond limits, losses to carry forward
   4. 4Choose ITR-4 if clear, else ITR-3

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.