The ITR-4 Form, also known as the Sugam Form, is designed for taxpayers who have opted for the presumptive income scheme under Sections 44AD, 44ADA, and 44AE of the Income Tax Act. Eligible taxpayers are required to use this form for their tax returns.

For businesses with a turnover exceeding Rs 2 crore, the ITR-3 form is generally required, and in some cases, the ITR-5 form may also be appropriate. At gsttaxwala, we offer specialized support for ITR-4 filing to ensure a smooth, accurate, and hassle-free filing experience. Contact us today for expert assistance.

Who is Eligible to File the ITR-4 Form?

The ITR-4 Form is applicable for individuals, Hindu Undivided Families (HUFs), and firms (excluding Limited Liability Partnerships or LLPs) who have opted for the presumptive income scheme under Sections 44AD, 44ADA, and 44AE of the Income Tax Act.

Understanding the Presumptive Taxation Scheme

The presumptive taxation scheme allows eligible taxpayers to estimate income at prescribed rates, simplifying compliance. Typically, under Section 44AA of the Income Tax Act, certain taxpayers must maintain detailed accounting records. However, Sections 44AD, 44ADA, and 44AE provide small taxpayers the option to estimate income, thus reducing the need for extensive records. Here’s an overview for ITR-4 filers:

• Section 44AD: This allows eligible resident individuals, resident HUFs, and resident partnership firms (excluding LLPs) engaged in specified businesses to estimate their income based on standard rates, provided they meet certain conditions.

• Section 44ADA: Resident professionals in India listed under Section 44AA(1) can use this scheme to estimate their professional income, subject to certain conditions.

• Section 44AE: This section applies to individuals, HUFs, firms, and others involved in the business of plying, leasing, or hiring goods vehicles. This scheme is available for those who own no more than ten goods vehicles in the previous year.

Eligibility Criteria for Filing the ITR-4 Sugam Form

To qualify for using the ITR-4 Sugam form, taxpayers must meet the following criteria for the assessment year:

• Total Income Limit: The total income should not exceed Rs 50 lakh.

• Income Sources:

  • Income from salary or pension.
  • Income from a single house property.
  • Income from other sources, such as interest or family pension.
  • Business income under the presumptive scheme (total turnover up to Rs 2 crore).
  • Income from goods vehicles on a presumptive basis (for up to ten vehicles).
  • Professional income on a presumptive basis under Section 44ADA, with gross receipts up to Rs 50 lakh.

Gsttaxwala is here to guide you through the entire ITR-4 filing process, ensuring compliance and accuracy. Contact us today to get started with your tax filing.