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ITR - 4: Price List

ITR - 4 SUGAM  FILINGS A.YR. 2024-25

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ITR - 4 for presumptive Income

Rs. 1199

What is ITR 4 - Sugam

ITR-4 Sugam, also known as the Sugam form, is designed for individuals, Hindu Undivided Families (HUFs), and professionals opting for the presumptive taxation scheme under Sections 44AD, 44ADA, and 44AE of the Income Tax Act. It caters to those with income from businesses, professions, or certain eligible trades. The ITR-4 form is specifically applicable to small businesses and professionals having presumptive income, simplifying the tax filing process by providing a structured format for reporting financial particulars of the business. Individuals utilizing the presumptive taxation scheme often use ITR-4 to declare their income based on presumptive rates without the need for detailed accounting or financial statements.

Form ITR 4 FOR WHOM - ELIGIBILITY

Form ITR 4 is required to be filed by Individuals, HUF & Firms (other than LLP) whose income comes from the following sources:

  • Business Income under Section 44AD/Section 44AE

  • Income from profession as per Section 44ADA

  • Total Income is only up to Rs. 50 lakhs

RETURN ITR-4 - INELIGIBILITY

Form ITR 4 cannot be filed by any individual, HUF & Firms (other than LLP)  who:

  • Holds Directorship in a company

  • Holds any unlisted equity shares at any time during the previous year

  • Has assets/financial interest in an entity outside India

  • Has profits from a business or profession which is not required to be computed under sections 44AD, 44ADA or 44AE, like income from speculative business, commission, brokerage, etc.

  • Makes Capital Gains

  • Has income from more than one house property or Joint ownership in House Property

  • Has income under the head “other sources” from winning lottery, horse races, income taxable at special rates u/s 115BBDA or 115BBE

  • Has agricultural income exceeding Rs. 5,000

  • Has any brought forward loss or loss which is to be carried forward under any income head

  • Has loss under “income from other sources”

  • Has a claim of relief under Sections 90, 90A or 91

  • Has any deduction claim under Section 57 (except deduction relating to family pension)

  • Has claim of tax credit which has been deducted at source in the hands of another person

How to fill ITR-4 Form?

When filing ITR-4, individuals are required to provide essential financial details such as sundry creditors, inventories, and financial particulars of the business. Sundry creditors and inventories represent financial components crucial for businesses or professions and are reported in the ITR-4 form for accurate tax assessment. Deductions applicable to the presumptive income are also accounted for in ITR-4, allowing eligible individuals to claim deductions according to Income Tax regulations. Gross total income in ITR-4 is calculated after factoring in the presumptive income as per the specified provisions under Sections 44AD, 44ADA, or 44AE, simplifying the tax computation process for eligible taxpayers. Understanding the intricacies of ITR-4 and its relevance to businesses and professionals opting for presumptive income is essential for accurate and compliant tax filing.

DOCUMENTS REQUIRED FOR FILING ITR 4

  • Details of Income such as profits/gains from Business

  • Receipts/Turnover of Business/ Profession

  • Gross Profit & Net Profit of Business/ Profession

  • Details of Sundry Debtors, Creditors, Stock and Cash balance of the Business/ Profession.

  • Documents relating to Deductions claimed

  • Form 16A/26AS

INCOME TAX RETURN -ITR 4 [SUGAM]

Here we will discuss the details required to be filled in ITR-4. 

PART-A - GENERAL INFORMATION 

Part A of the ITR-4 contains some general information such as Name, PAN, Date of birth, Mobile No. , Email ID, Aadhar No., type of filing, nature of Employment, whether the filing id original or  revised, whether the filing is u/s 139 i.e. on time or belated, etc. Also, it asks whether you are opting for New Tax Regime u/s 115BAC. The details are also provided if the return is being filed in compliance of Seventh proviso to Section 139(1). 

PART B - GROSS TOTAL INCOME 

Here the details of Income from Business or Profession, Salary Income, House Property Income and Other sources of Income have to be provided. The details of Business/Profession Income u/s 44AD, ADA & AE is auto-populated from the Schedule of Business/Profession. 

The Gross Total Income arrives after all income adjustments. 

PART C - DEDUCTIONS AND TAXABLE TOTAL INCOME 

Various deductions under chapter VIA such as 80C, 80CCC, 80CCD, 80D, 80E, 80EE, 80G, 80TTA, 80TTB, 80U, etc. have to be filled in here to arrive at taxable total income. 

PART D - TAX COMPUTATION AND TAX STATUS

The tax on total income is arrived at after taking into account all rebates and reliefs and also interest payable u/s 234A, 234B, 234C, etc., and also the refund if any. 

Details of all bank accounts have to be filled in. 

SCHEDULE - BP  - DETAILS OF INCOME FROM BUSINESS OR PROFESSION 

Under this Schedule, Details of Income from Business or Profession have been divided into three sections i.

 

(i) u/s 44AD   - Here the gross receipts from Business have to be bifurcated into cash and otherwise than cash has to be disclosed separately so as to arrive at a Profit of 6% or 8% respectively. 

(ii) u/s 44ADA - Here the gross receipts from the profession have to be filled so as to arrive at net profit of 50% of gross receipts. 

(iii) u/s 44AE - Here, the details of the Vehicles such as registration no., ownership or leased, no. of months for which it was used and the receipts on the basis of tonnage capacity of vehicle has to be filled. 

In all the above sections, the Business Code, Name of the Business and Description has to be provided. 

Information regarding GST turnover has also to be disclosed if GST no. is there for any business. 

Financial Particulars of the Business - There are 15 items provided for information such as Capital, Secured & unsecured loans, Advances, Sundry Creditors, Other Liabilities, Fixed Assets, Inventories, sundry Debtors, Balance with Banks, Cash in hand, Loans and Advances and other Assets. 

All the details related to the Balance Sheet of the Business.

However, only four details i.e. Sundry Creditors, Inventories, Sundry Debtors and Cash in hand are mandatory and others are optional. 

SCHEDULE IT - DETAILS OF ADVANCE AND SELF ASSTT. TAX 

Here are complete details of challans paid for advance tax and self asstt. tax have to be filled in such as BSR code, date of payment, challan sr. no. etc. 

SCHEDULE TCS - DETAILS OF TAX COLLECTED AT SOURCE [AS PER FORM 27D]

Here complete details of TCS as per Form 27D have to be filled up if there is any tax collected at source. 

SCHEDULE TDS-1  - TDS FROM SALARY 

Here details of TDS deducted from salary have to be filled up as per Form 16 issued by Employer 

SCHEDULE TDS-2 - TDS FROM INCOME OTHER THAN SALARY 

Here details of TDS deducted have to be filled up as per Form 16A or 16C,16D furnished by Deductor

VERIFICATION 

The last part is verification which can be done through Aadhaar OTP, Digital Signature, or other modes of e-verification prescribed. If no such mode is available, then the ITR-V acknowledgment has to be physically signed and send to CPC-Bangluru within 30 days of E-filing of ITR. 

Herein, We list some of the features/highlights of Presumptive Taxation Scheme

  • There is no requirement of maintaining books of accounts

  • The net income is estimated to be 8% of receipts if the same is in cash. However, for receipts in Digital mode, the net income is assumed to be 6% of such gross receipts.

  • No other business expenses is allowed

  • The whole of the advance tax has to be paid by 15th March. i.e. the quarterly installments of Advance Tax need not to be paid.

Presumptive Taxation Scheme for Businesses u/s 44AD

Businesses having a turnover of upto Rs.2 crores can avail the benefits of  presumptive taxation scheme. The rates of presumed income chargeable to tax under the scheme is set at 8% (if the receipts are in cash and 6% if the same are in Digital mode). i.e. If a person has a cash turnover of Rs.1 Cr. During a particular Financial year, the income tax is payable on Rs.8 lacs as income. However, if the actual income is more than 8% or 6% as the case may be, then the higher income (i.e. actual) has to be declared. There is no requirement to maintain books of accounts if a person opts for this scheme.

Presumptive Taxation Scheme for Professionals u/s 44ADA

The presumptive taxation scheme has also been extended to professionals. However, professionals under this scheme should have gross receipts from professional services not exceeding Rs.50 lakhs in a financial year. For professionals enrolled under the presumptive taxation scheme, 50% of the total receipts of the professional during the financial year would be considered as profit and get taxed under the income tax head, “Profits and gains of business or profession”. For example, if a professional has total receipts from profession amounting to Rs.40 lakhs, then the taxable income would be a minimum of Rs.20 lakh under the presumptive taxation scheme.

Similar to the presumptive taxation scheme for Business, professionals can also declare income more than the mandatory 50% of the total receipts. However no deduction of Salary & interest paid to Partners are allowed under this scheme. Also no other deduction is allowed from the declared income.

 

Presumptive Taxation Scheme for Transporters u/s 44AE.

The presumptive taxation scheme for transporters can be availed by persons involved in plying, hiring or leasing of goods carriages and who own less than 10 goods carriage.

In this scheme, for heavy goods carriage/vehicle, the profit shall be equal to Rs.1000 per ton of gross vehicle weight or unladen weight for every month or part of month during which the heavy goods vehicle is owned by the assessee for the previous year or the amount claimed to have been actually earned from such vehicle whichever is higher.

Whereas in the case of light goods vehicle, the profit shall be equal to Rs. 7500 per month or part of the month for which the vehicle is owned by the assessee or the amount claimed to have been actually earned from such vehicle whichever is higher.

Want to know more about presumptive taxation schemes under Income Tax  ?

Presumptive Scheme for Eligible business

Presumptive Scheme for Professionals

Presumptive Scheme for plying, leasing or hiring goods carriage 

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  • What is Form 16?
    Every Salaried Employee whose total income after all eligible deductions under income tax act exceeds the maximum amount not chargeable to tax is required to get their tax deducted from their employers as per their eligible tax slabs. Thus the employer has to deduct tax at source from income of every employee whose total income is chargeable to tax and has to deposit the TDS so deducted into the Govt. Account. Every Employer has to file TDS return of salary at the end of the Financial year and has to provide the Form 16 to every employee whose TDS has been deducted at Source. For more details check out this ➡
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