ITR-4 Return Filing
ITR-4 Return Filing
ITR-4 is an income tax return form in India, also known as Sugam, designed for individuals and Hindu Undivided Families (HUFs) who have income from proprietary business or profession. It is applicable for taxpayers opting for presumptive taxation under sections 44AD, 44ADA, or 44AE of the Income Tax Act. The form requires taxpayers to report their business or professional income, deductions, and tax computations. ITR-4 can be filed online on the Income Tax Department’s e-filing website and must be verified using digital signature, Aadhaar OTP, or by sending a signed physical copy to the Centralized Processing Center (CPC).
Who is Eligible to file Form ITR 4 Form?
Form ITR-4, also known as Sugam, is suitable for individuals, Hindu Undivided Families (HUFs), and firms (other than LLPs) who have opted for the presumptive income scheme under Sections 44AD, 44ADA, or 44AE of the Income Tax Act. Here’s a breakdown of eligibility:
- Business Income: Individuals, HUFs, or firms who derive income from a business where turnover does not exceed ₹2 crores (₹50 lakhs for professionals opting for Section 44ADA).
- Professionals: Professionals like doctors, lawyers, engineers, etc., who opt for presumptive taxation under Section 44ADA.
- Transporters: Individuals or HUFs engaged in the business of plying, hiring, or leasing goods carriages under Section 44AE.
What is a Presumptive Taxation Scheme?
Presumptive taxation scheme is a simplified method of calculating and paying income tax for certain eligible taxpayers in India. Here’s an overview:
Applicability: It applies to small businesses and professionals whose turnover or gross receipts do not exceed a specified limit.
Objective: Simplify tax compliance for small taxpayers by allowing them to declare income at a predetermined rate based on turnover or gross receipts, without the need for maintaining detailed accounting records.
Sections: Presumptive taxation schemes are covered under Sections 44AD, 44ADA, and 44AE of the Income Tax Act, 1961, for businesses, professionals, and transporters respectively.
Benefits: Reduces compliance burden, allows for easier tax calculations, and promotes voluntary compliance among small taxpayers.
Taxpayers opting for presumptive taxation schemes report income at a prescribed rate, typically a percentage of turnover or gross receipts, and file simplified income tax returns accordingly.
Applicability: It applies to small businesses and professionals whose turnover or gross receipts do not exceed a specified limit.
Objective: Simplify tax compliance for small taxpayers by allowing them to declare income at a predetermined rate based on turnover or gross receipts, without the need for maintaining detailed accounting records.
Sections: Presumptive taxation schemes are covered under Sections 44AD, 44ADA, and 44AE of the Income Tax Act, 1961, for businesses, professionals, and transporters respectively.
Benefits: Reduces compliance burden, allows for easier tax calculations, and promotes voluntary compliance among small taxpayers.
Taxpayers opting for presumptive taxation schemes report income at a prescribed rate, typically a percentage of turnover or gross receipts, and file simplified income tax returns accordingly.
ITR-4 Return Filing FAQ's
ITR-4 is suitable for individuals, Hindu Undivided Families (HUFs), and firms (other than LLPs) who have opted for presumptive taxation under Sections 44AD, 44ADA, or 44AE of the Income Tax Act.
Taxpayers should report income from business or profession, salary/pension, house property, and other sources if applicable.
Yes, professionals like doctors, lawyers, engineers, etc., who opt for presumptive taxation under Section 44ADA can use ITR-4.
Deductions under Chapter VI-A (like 80C, 80D, etc.) can be claimed, subject to eligibility criteria.