ITR-4 Return

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ITR-4 Return Filing

For taxpayers who have chosen to participate in the presumptive income system described in Sections 44AD, 44ADA, and 44AE of the Income Tax Act, there is a form called ITR-4, sometimes known as the Sugam form. For qualifying taxpayers, completing and submitting this form is required.

However, ITR-3 should be employed by companies whose yearly revenue exceeds Rs. 2 crores. Additionally, ITR-5 can be necessary based on specific conditions. For the filing of the ITR 4 income tax, Taxhint Advisors provides professional support. For a precise and seamless filing procedure, get in touch with our professionals right now.

Who Can Submit Form ITR 4 Online?

The Income Tax Return form known as the ITR 4 Form is intended for use by individuals, firms (other than Limited Liability Partnerships or LLPs), and Hindu Undivided Families (HUFs) that elect to use the presumptive income system in accordance with Sections 44AD, 44ADA, and 44AE of the Income Tax Act.

A Presumptive Taxation Scheme: What Is It?

The presumptive taxation scheme is designed to simplify tax compliance for certain individuals and businesses.

Individuals and businesses involved in certain activities are generally required to keep thorough accounting records under Section 44AA of the Income Tax Act. To alleviate the difficulty of keeping copious financial records, small taxpayers can estimate their income at established rates thanks to Sections 44AD, 44ADA, and 44AE. Below is an explanation of various methods for ITR4 users:

Section 44AD

As long as they meet certain requirements, this plan enables resident individuals, resident Hindu Undivided Families (HUFs), and resident partnership firms (except from Limited Liability Partnerships) involved in particular activities to compute their income on an approximated basis.

Section 44ADA

Subject to specific requirements, residents of India who work as professionals in the sectors listed under Section 44AA(1) may use this program to estimate their professional income.

Section 44AE

Individuals, HUFs, Firms (except limited liability partnerships), and any residents or non-residents involved in the plying, leasing, or hiring of goods carriages are all eligible for this scheme. As long as they owned less than 10 goods carriages the year before, they were able to estimate their income under this plan.

Eligibility Criteria for Filing SUGAM (ITR-4) Form

The taxpayer must fulfil the following requirements for the assessment year in order to be eligible to use the ITR-4 SUGAM form:

Total Income: The income should not exceed fifty lakh rupees in total.

The Income should be derived from any of the following sources:

  • 🔹 Earnings from a pension or salary.
  • 🔹 Revenue from a single residential property.
  • 🔹 Interest income and/or income from family pension taxable under Other Sources.
  • 🔹 Income from a firm (gross turnover up to Rs. 2 crores), calculated on an assumed basis.
  • 🔹 Presumptive basis income from a firm (income from goods carriage up to 10 cars).
  • 🔹 Income from a profession, as determined under Section 44ADA (gross receipt up to Rs. 50 lakh), on an assumed basis.

Important Notes:

Income is assumed to have been determined after taking into account all allowances, depreciation, losses, or deductions in accordance with the Income-tax Act when it is computed on a presumptive basis under sections 44AD, 44AE, or 44ADA. On the other hand, anyone who lose money after applying the proviso to Section 44AE, subsection 3, must file an ITR-5.

The SUGAM form may only be utilised if the additional income is included in one of the previously listed specified income categories and the taxpayer has to combine the income of another individual with their own, such as a spouse or minor kid.

Non-Applicability of ITR- 4 SUGAM Form

The ITR 4 application standards do not apply to the following taxpayer categories:

  • 🌟 Directors of a company
  • 🌟 Anyone who owned equity shares that were not listed at any time in the prior year.
  • 🌟 Taxpayers with assets, including financial interests, in any entity situated outside India.
  • 🌟 Those with the ability to sign documents for any account that is located outside of the nation.
  • 🌟 Individuals whose sources of income are not in India.

Additionally, anyone with the following categories of income from the prior year are ineligible to utilise the SUGAM form:

  • 🌟 Gains and profits from businesses and occupations that are not subject to calculation under the Income-tax Act's Sections 44AD, 44ADA, or 44AE. This covers commission or broking income, as well as income from speculative ventures and agency business.
  • 🌟 Revenue from many residential properties.
  • 🌟 Capital gains.
  • 🌟 Income derived from winning a lottery.
  • 🌟 Involvement in the ownership and upkeep of racehorses.
  • 🌟 Section 115BBDA or Section 115BBE of the Income Tax Act imposes specific rates of taxation on income.
  • 🌟 Income that must be distributed in line with Section 5A's guidelines.
  • 🌟 Agricultural income exceeding Rs. 5,000.
  • 🌟 Furthermore, the following types of claims about loss, deductions, relief, or tax credits are not appropriate for use with this return form.

Losses that have already happened or losses that are meant to be carried over under the heading "Income from house property."

  • 🌟 Requests for relief under the Income Tax Act's Section 9A, Section 90, or Section 91.
  • 🌟 claims for Section 57 deductions, except deductions for family pensions.
  • 🌟 claims made by any other person for the credit of taxes withheld at the source.

Form Structure for ITR 4

The ITR 4 Form is divided into four sections to make it simple to report your income and tax-related data:

Part A: General Information

Your personal information, including name, gender, PAN number, date of birth, income tax ward, address, email address, and cellphone number, is included in this portion of the ITR 4 form.

Part B: Gross Total Revenue from the Five Income Heads

You report your income from a variety of sources in this section under the following five headings: business income, income from a salary or pension, income from real estate, and income from other sources. Your gross total income is determined by combining together all of these incomes.

Part C: Deductions and Total Taxable Income

This is where you list the deductions that are permitted under the Income Tax Act's many provisions, including 80C, 80D, 80E, and others. To determine your total taxable income, these deductions are deducted from your gross total income.

Part D: Tax Computation and Tax Status

In this part, your tax burden is calculated in detail. It takes into account things like the surcharge, section 89 relief, interest under 234B and 234C, advance tax paid, TCS collected, section 87A rebate, refund, cess on tax payable, and more. It determines the total tax owed and computes the balance required if the total tax plus interest exceeds the amount of taxes paid.

Further information is required for those reporting business income and choosing to participate in the presumptive income scheme under Sections 44AD or 44AE:

  • 🔹 Schedule IT: Self-assessment tax payment statement and advance tax statement.
  • 🔹 The Statement of Taxes Collected at Source, or Schedule TCS (TCS).
  • 🔹 Statement of tax withheld at source from salary, Schedule TDS1.
  • 🔹 Timetables TDS2: Tax Deduction Statement for Non-Salary Income.
  • 🔹 You might also need to complete additional schedules like TDS1, TDS2, IT, and TCS as needed, depending on your tax circumstances.

You have to check and sign the return after filling out all the required parts and schedules. Only then can it be submitted. This guarantees the veracity and correctness of the data offered.

Annexure-less Return Form

Taxpayers do not need to upload any additional papers, such as TDS certificates, while using the SUGAM return form.

Why Choose Taxhint Advisors for ITR4?

  • Expert Guidance: Take advantage of our professionals' experience as they walk you through the ITR 4 income tax filing procedure, making sure everything is accurate, confirming that the ITR 4 is applicable, and adhering to all applicable tax laws.
  • Convenience: File your ITR4 from the comfort of your home or place of business with our online platform's simplicity and convenience. Bid adieu to paperwork and lengthy lines.
  • Accuracy: Your ITR4 will be error-free thanks to our thorough review procedure, which lowers the possibility of future tax-related problems.
  • On-Time Filing: We recognise the importance of timely tax filing. You may be sure that Taxhint Advisors will file your ITR 4 income tax form on time, assisting you in meeting tax deadlines and avoiding fines.

Get in touch with Taxhint Advisors right now, and our committed staff will help you at every turn.