ITR-4 Return Filing

ITR-4 Return Filing – File with Ease at Easy My Tax

The ITR-4 Form, commonly known as the Sugam Form, is specifically designed for taxpayers who opt for the presumptive income scheme under Sections 44AD, 44ADA, and 44AE of the Income Tax Act. Filing this form is mandatory for eligible taxpayers to report their income accurately while benefiting from simplified compliance norms.

However, businesses with an annual turnover exceeding Rs. 2 Crores must file their returns using ITR-3. In certain cases, based on income sources and complexities, ITR-5 may also be applicable. At Easy My Tax, our expert team is here to help you with hassle-free and accurate ITR-4 filing. 

Who is Eligible to File Form ITR-4?

The ITR-4 Form is meant for individuals, Hindu Undivided Families (HUFs), and partnership firms (excluding LLPs) who opt for the presumptive income scheme under the following sections:

• Section 44AD: For small businesses calculating income on a presumptive basis.
• Section 44ADA: For professionals estimating income under the presumptive scheme.
• Section 44AE: For transporters engaged in goods carriage business owning up to ten vehicles.

What is the Presumptive Taxation Scheme?

The presumptive taxation scheme simplifies tax compliance for small taxpayers by allowing them to declare income at a prescribed rate without maintaining detailed books of accounts.

• Under Section 44AA, taxpayers are generally required to maintain detailed records.
• Sections 44AD, 44ADA, and 44AE provide relief by permitting income estimation at fixed rates, reducing administrative burden.

Breakdown of Presumptive Schemes for ITR-4 Users:

• Section 44AD: Resident individuals, HUFs, and partnership firms (excluding LLPs) engaged in eligible businesses can declare income at a prescribed rate if turnover is up to Rs. 2 Crores.
• Section 44ADA: Resident professionals (like doctors, lawyers, engineers, architects) with gross receipts up to Rs. 50 lakh can declare income presumptively.
• Section 44AE: Applicable to taxpayers engaged in goods carriage business owning not more than ten vehicles.

Eligibility Criteria for Filing ITR-4 (SUGAM)

To file ITR-4 for the Assessment Year 2025-26, taxpayers must satisfy the following:

• Total income should not exceed Rs. 50 lakh.
• Income should be derived from one or more of these sources:
  • Income from Salary or Pension.
  • Income from One House Property.
  • Interest income and/or Family Pension taxable under Other Sources.
  • Business income computed on a presumptive basis under Section 44AD (turnover up to Rs. 2 Crores).
  • Income from goods carriage business with up to ten vehicles under Section 44AE.
  • Income from profession computed presumptively under Section 44ADA (gross receipts up to Rs. 50 lakh).

Note: Losses under presumptive schemes are generally not allowed except for specific cases under Section 44AE, where losses must be reported in ITR-5.

Who Cannot Use ITR-4?

Certain taxpayers are not eligible to file using ITR-4. These include:

• Directors of companies.
• Individuals holding unlisted equity shares during the financial year.
• Taxpayers with foreign assets or financial interests.
• Individuals with signing authority over foreign bank accounts.
• Persons having income from foreign sources.
• Taxpayers with income from:
  • Business or profession not covered under presumptive schemes.
  • More than one house property.
  • Capital gains.
  • Lottery winnings.
  • Income subject to special tax rates (e.g., under Sections 115BBDA or 115BBE).
  • Agricultural income exceeding Rs. 5,000.
• Individuals claiming specific losses or reliefs, such as carried-forward house property loss, relief under Sections 90 or 91, or certain deductions under Section 57.

Structure of the ITR-4 Form

The ITR-4 is divided into four parts for easier reporting:

• Part A: General Information – Personal details such as PAN, date of birth, contact info.
• Part B: Gross Total Income – Income from business, salary, house property, and other sources.
• Part C: Deductions and Total Taxable Income – Deductions under sections like 80C, 80D, 80E, etc.
• Part D: Tax Computation and Status – Calculation of tax liability, advance tax, TDS, rebates, and balance tax payable.

For presumptive income filers, additional schedules must be filled:

• Schedule IT: Advance tax and self-assessment tax payments.
• Schedule TCS: Tax collected at source.
• Schedules TDS1 & TDS2: Tax deducted at source on salary and other incomes.

Annexure-less Filing with ITR-4

One of the key benefits of ITR-4 (Sugam) is that no additional document upload is required while filing. Taxpayers do not need to submit TDS certificates or other proofs online.

Why Choose Easy My Tax for Your ITR-4 Filing?

• Expertise: Our tax professionals help ensure your ITR-4 is filed accurately and in compliance with the latest regulations.
• Convenience: File your tax return online, anytime and anywhere, without visiting tax offices.
• Accuracy: We double-check your information to minimize errors and avoid scrutiny.
• Timely Filing: Stay ahead of deadlines with our prompt service, avoiding penalties and interest.

Ready to file your ITR-4 hassle-free? Contact Easy My Tax today and get expert assistance throughout the filing process. Let us simplify your tax journey!