ITR-4 Return

INR 4899 All Inclusive
 

Basic

  • Income Tax Return Filing
INR 9899 All Inclusive
 

Tax Assist

  • GST Return Filing
  • Income Tax Return Filing

ITR-4 Return Filing

The ITR-4 Form, commonly known as the Sugam form, is tailored specifically for taxpayers who have chosen to adopt the presumptive income scheme as outlined in Sections 44AD, 44ADA, and 44AE of the Income Tax Act. It is essential for eligible taxpayers to complete and submit this form to ensure compliance with tax regulations.

However, it is crucial to note that businesses with an annual turnover exceeding Rs. 2 Crores must utilize ITR-3 instead. Depending on the specific circumstances of the taxpayer, the ITR-5 form may also be required. At Allycon, we provide expert assistance for ITR-4 income tax filing, ensuring a seamless and accurate filing process. Contact our knowledgeable experts today to guide you through this essential task.

Who is Eligible to file Form ITR 4 Form?

The ITR-4 Form is specifically designed for individuals, Hindu Undivided Families (HUFs), and firms (excluding Limited Liability Partnerships or LLPs) that opt to use the presumptive income scheme as per Sections 44AD, 44ADA, and 44AE of the Income Tax Act.

What is a Presumptive Taxation Scheme?

The presumptive taxation scheme serves to simplify the tax compliance process for select individuals and businesses.

Under Section 44AA of the Income Tax Act, individuals and businesses engaged in specific activities are typically required to maintain comprehensive accounting records. However, the provisions in Sections 44AD, 44ADA, and 44AE provide relief for small taxpayers by allowing them to estimate their income at prescribed rates, thereby alleviating the burden of maintaining extensive financial records. Below is a detailed breakdown of these schemes applicable to users of ITR-4:

  • Section 44AD: This scheme permits Resident Individuals, Resident Hindu Undivided Families (HUFs), and Resident Partnership Firms (excluding Limited Liability Partnerships) engaged in specified businesses to estimate their income, provided they meet certain conditions.

 

  • Section 44ADA: Resident individuals in India who are professionals in fields identified under Section 44AA(1) can utilize this scheme to estimate their professional income, subject to specific conditions.

 

  • Section 44AE: This scheme applies to individuals, HUFs, firms (excluding LLPs), and other residents or non-residents engaged in the business of operating, leasing, or hiring goods carriages. They can estimate their income under this scheme, provided they own no more than ten goods carriages during the previous year.

Eligibility Criteria for Filing SUGAM (ITR-4) Form

To qualify for using the ITR-4 SUGAM form, the taxpayer must satisfy the following criteria for the assessment year:

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

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

  • Salary or pension income.
  • Income from a single house property.
  • Interest income and/or income from family pension taxable under other sources.
  • Income from a business computed on a presumptive basis (gross turnover up to Rs. 2 crores).
  • Income from a business computed on a presumptive basis (income from goods carriage up to ten vehicles).
  • Income from a profession computed on a presumptive basis under Section 44ADA (gross receipts up to Rs. 50 lakh).

Important Notes

When income is computed on a presumptive basis under Sections 44AD, 44AE, or 44ADA, it is assumed to have been calculated after considering all allowances, depreciation, losses, or deductions as per the Income Tax Act. However, individuals who incur losses after applying the proviso to sub-section 3 of Section 44AE must file ITR-5.

If a taxpayer wishes to combine the income of another person, such as a spouse or minor child, with their own income, the SUGAM form can only be used if the additional income falls within the specified income categories mentioned above.

Non-Applicability of ITR- 4 SUGAM Form

The following categories of taxpayers are not eligible to use the ITR-4 form:

  • Directors of a company.
  • Individuals who held unlisted equity shares at any point during the previous year.
  • Taxpayers with assets, including financial interests, in any entity located outside India.
  • Individuals with signing authority in any account situated outside the country.
  • Persons with income from sources outside India.

Moreover, the SUGAM form is not applicable for individuals with the following types of income during the previous year:

  • Profits and gains from businesses and professions not computed under Sections 44AD, 44ADA, or 44AE. This includes income from agency business, speculative business, commission, or brokerage income.
  • Income derived from more than one house property.
  • Capital gains.
  • Income obtained from winning a lottery.
  • Engagement in activities related to owning and maintaining racehorses.
  • Income taxable at special rates under Sections 115BBDA or 115BBE of the Income Tax Act.
  • Income that must be apportioned according to the provisions of Section 5A.
  • Agricultural income exceeding Rs. 5,000.

Additionally, this return form is not suitable for individuals with any claims related to losses, deductions, relief, or tax credits, including:

  • Losses incurred in prior years or losses intended to be carried forward under “Income from house property.”
  • Claims for relief under Sections 9A, 90, or 91 of the Income Tax Act.
  • Losses under Income from other sources.
  • Claims for deductions under Section 57, except for deductions related to family pensions.
  • Claims for the credit of tax deducted at source in the name of another individual.

Structure of the ITR 4 Form

The ITR-4 Form is organized into four distinct parts to facilitate easy reporting of your income and tax-related information:

  • Part A: General Information
    This section collects personal details, including your name, gender, PAN number, date of birth, income tax ward, address, email address, and mobile number.

  • Part B: Gross Total Income from the 5 Heads of Income
    In this part, you will report income from various sources categorized into five heads: business income, salary or pension income, house property income, and other sources. By summing these incomes, you can calculate your gross total income.

  • Part C: Deductions and Total Taxable Income
    Here, you will list the deductions allowed under various sections of the Income Tax Act, such as 80C, 80D, 80E, and others. These deductions are subtracted from your gross total income to determine your total taxable income.

  • Part D: Tax Computation and Tax Status
    This section involves detailed calculations of your tax liability, considering factors like surcharge, relief under Section 89, interest under Sections 234B and 234C, advance tax paid, TCS collected, refund, rebate under Section 87A, cess on tax payable, and more. It computes your total tax payable and calculates the balance tax due if the total tax and interest exceed the taxes paid.

For individuals reporting income from business and opting for the presumptive income scheme under Sections 44AD or 44AE, additional information must be provided:

  • Schedule IT: Statement of advance tax and self-assessment tax payment.
  • Schedule TCS: Statement of taxes collected at source (TCS).
  • Schedule TDS1: Statement of tax deducted at source on salary.
  • Schedule TDS2: Statement of tax deducted on income other than salary.

Depending on your tax situation, you may also need to fill out supplementary schedules like TDS1, TDS2, IT, and TCS as necessary. Once all sections and schedules are completed, you must verify and sign the return before submitting it to ensure the accuracy and legitimacy of the information provided.

Annexure-less Return Form

When utilizing the SUGAM return form, taxpayers are not required to upload any additional documents, including TDS certificates, simplifying the filing process.

Why Choose Allycon for ITR4?

  • Expert Guidance: Leverage the expertise of our professionals, who will navigate you through the ITR-4 income tax filing process, ensuring accuracy, verifying ITR-4 applicability, and complying with all tax regulations.

  • Convenience: Experience the ease of our online platform, which allows you to file your ITR-4 from the comfort of your home or office. Say goodbye to long queues and overwhelming paperwork.

  • Accuracy: Our meticulous review process guarantees that your ITR-4 is free from errors, minimizing the risk of potential tax-related issues in the future.

  • Timely Filing: We recognize the importance of timely tax filing. With Allycon, you can trust that your ITR-4 income tax form will be submitted promptly, helping you avoid penalties and adhere to tax deadlines.

Contact Allycon today, and our dedicated team will assist you at every step of the process.

Related Business Registrations

In addition to registration or incorporation, a business may require other registrations depending on the business activity undertaken. Talk to an Advisor to find out registrations your business may require post registration.