ITR-4,under presumptive Taxation

To file ITR-4, you must first isolate the actual business receipts from the total bank transactions. Apply the 6% presumptive rate to digital/UPI business receipts and 8% to cash business receipts. You cannot artificially lower the income to stay under the 12 lakh limit; if the resulting taxable income is higher, it must be reported accurately. If the client insists on declaring income lower than the presumptive rates, they must maintain proper books of account and comply with audit requirements under Section 44AB.