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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.
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.
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:
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.
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.
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:
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.
The ITR 4 application standards do not apply to the following taxpayer categories:
Additionally, anyone with the following categories of income from the prior year are ineligible to utilise the SUGAM form:
Losses that have already happened or losses that are meant to be carried over under the heading "Income from house property."
The ITR 4 Form is divided into four sections to make it simple to report your income and tax-related data:
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.
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.
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.
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:
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.
Taxpayers do not need to upload any additional papers, such as TDS certificates, while using the SUGAM return form.
Get in touch with Taxhint Advisors right now, and our committed staff will help you at every turn.