First time itr4 filing

Yes, you can safely show ₹20 lakh as Capital in the ITR-4 Balance Sheet, matched with “Bank Balance” on the assets side, with ₹0 creditors, since your son has no liabilities or assets.

This is perfectly valid for a first-time ITR-4 filer under presumptive taxation (44ADA).

Thank you so much sir . I was confused as to what to do about this as there are very few cases like this since people generally take loan and start  , i wanted to avoid that. Thanks once again.

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For a consulting doctor, ITR-4 may be available if he is eligible to use presumptive taxation under section 44ADA and meets the other conditions for that year. A doctor is a specified profession, and the 44ADA limit is generally ₹50 lakh, increased to ₹75 lakh where cash receipts do not exceed 5% of total receipts. Presumptive income is ordinarily 50% of gross professional receipts or a higher amount. Check the rules and ITR form applicable when filing in 2026.

The ₹20 lakh bank balance is not automatically “capital” merely because it is in his account. If the money was genuinely accumulated from his own past income or valid gifts, show the source consistently in his capital/funds; sundry creditors are only amounts owed to others, so do not enter a figure there unless a liability exists. Keep bank statements and evidence explaining the deposits. If the cash was deposited by you, the ownership and source need to be established: gifts from a parent to a son are generally exempt from tax in the son’s hands, but the underlying source and timing still matter. Don’t treat unexplained cash deposits as professional receipts or capital without support. ITR-4 generally does not require a full balance sheet; follow the fields in the relevant year’s form and utility.

This return ties professional receipts, presumptive income and personal bank balances together, so reconciling the history of deposits is important. Manual records over many years can be difficult to assemble; automation can reduce repetitive work while leaving source analysis and tax judgments in professional hands. At Jir AI, our 2,000+ AI agents and 650+ integrations streamline GST, ITR, TDS, TCS and other compliance workflows, helping reduce manual workload by up to 70%. For help streamlining compliance workflows, connect with us on WhatsApp: https://wa.me/message/3HVOZ7HIY4ESC1.