In the case of individuals, HUFs and Partnership Firmswho are residents of India create an income from a business or profession; they must select ITR-4.

Limited Liability Partnerships (LLPs) cannot choose this type of ITR form.

Taxpayers who have also selected the presumptive income scheme under Section 44ADA, Section 44AD, and Section 44AE of the Income Tax Act 1961, must also choose this form.

Who cannot opt for this form?

- The below-mentioned taxpayers and HUFs are not allowed to opt for ITR-4:

- In case the gross income generated is higher Rs.50 lakh

- In case any losses have been carried forward from previous years

- In case the taxpayer has a signing authority at a place outside India

- In case any investments were made in equity bonds unlisted at any time during the financial year

- In case taxpayers have generated a foreign income or foreign assets

- In case the income has been produced from more than one house property

- In case the taxpayer is the Director of a company

- In case the taxpayer is an NRI or an RNOR