Find
No. ITR-4 cannot be used by a director of a company, a person holding unlisted equity shares, a person with foreign assets or foreign income, agricultural income above ₹5,000, or losses to carry forward, among other bars. Such filers use ITR-3.
ITR
Situations where ITR-4 cannot be used
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Provisions
Sec 44AD (now Sec 58); Rule 12, Income-tax Rules 1962 (now Rule 164)
Analysis
You can still declare the shop's income on the presumptive basis in ITR-3; only the form changes. ITR-3 asks for more details, such as director's DIN and shareholding. If you filed ITR-4 wrongly, the return may be treated as defective; fix it with a revised return in the right form. The same applies to unlisted share holders, which includes many startup employees with ESOP shares.
Close
- Check each bar against your situation
- If any applies, use ITR-3
- Declare presumptive income in ITR-3 if eligible
- Revise if ITR-4 was filed wrongly
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