ITR-4 Return

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

To be eligible to use the ITR-4 SUGAM form, taxpayers must meet the following criteria for the assessment year:

• Total Income: Should not exceed ₹50 lakh.
• Income Sources: Must come from:
  • Salary or Pension
  • One House Property
  • Interest income and/or family pension taxable under Other Sources
  • Presumptive business income (Gross Turnover up to ₹2 crores)
  • Presumptive business income from goods carriages (up to ten vehicles)
  • Presumptive professional income under Section 44ADA (Gross receipts up to ₹50 lakh)

Important Notes:

When using presumptive schemes under Sections 44AD, 44AE, or 44ADA, income is assumed to be calculated with all allowances, depreciation, losses, or deductions considered. If you incur losses under Section 44AE, you will need to file ITR-5.

If combining income with another person’s income (such as a spouse or minor child), ensure the additional income falls within the specified categories for using the SUGAM form.

The ITR-4 SUGAM form is not suitable for the following taxpayers:

• Company Directors: Individuals holding directorships in any company.
• Equity Shareholders: Those who have owned unlisted equity shares at any time during the previous year.
• Foreign Asset Holders: Taxpayers with financial interests or assets in entities located outside India.
• Foreign Account Signatories: Individuals with signing authority over accounts situated outside the country.
• Foreign Income Recipients: Those receiving income from sources outside India.

Additionally, the ITR-4 SUGAM form is not applicable for individuals with the following types of income from the previous year:

• Business and Professional Income: Profits not covered under Sections 44AD, 44ADA, or 44AE of the Income-tax Act, including income from agency work, speculative business, or commission and brokerage.
• Multiple House Properties: Income from owning more than one residential property.
• Capital Gains: Income from the sale of assets.
• Lottery Winnings: Income from winning a lottery or similar prizes.
• Racehorse Activities: Income from owning or maintaining racehorses.
• Special Tax Rates: Income taxed under Sections 115BBDA or 115BBE of the Income Tax Act.
• Apportioned Income: Income requiring apportionment under Section 5A.
• Agricultural Income: Agricultural income exceeding Rs. 5,000.

This form also does not accommodate claims related to:

• Previous Losses: Losses carried forward from previous years under "Income from house property."
• Relief Claims: Relief under Sections 9A, 90, or 91 of the Income Tax Act.
• Income from Other Sources: Losses under "Income from other sources."
• Deductions: Claims for deductions under Section 57, except for family pension-related deductions.
• Tax Credits: Credits for tax deducted at source claimed by another person.

For personalized advice on tax forms and planning, contact Corpadda for expert guidance.

The ITR 4 Form is designed to simplify the reporting of your income and tax details by breaking it into four distinct sections:

1. Personal Information

This section collects your essential personal details, including your name, gender, PAN, date of birth, income tax ward, address, email, and mobile number.

2. Income Reporting

Here, you report your total income from various sources. This includes earnings from business activities, salaries or pensions, house properties, and any other sources. Sum up all these income sources to determine your gross total income.

3. Deductions and Taxable Income

In this part, list the deductions you are eligible for under different sections of the Income Tax Act, such as 80C, 80D, 80E, etc. Subtract these deductions from your gross total income to calculate your total taxable income.

4. Tax Computation and Status

This section involves calculating your total tax liability. It includes factors like surcharge, relief under section 89, interest under sections 234B and 234C, advance tax payments, TCS collected, any refunds, rebates under section 87A, cess on tax, and more. This helps determine your total tax payable and any balance tax due.

For those reporting business income and opting for the presumptive income scheme under Section 44AD or 44AE, additional details are required:

• Schedule IT: Statement of advance tax and self-assessment tax payments.
• 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.

You might also need to complete supplementary schedules like TDS1, TDS2, IT, and TCS, depending on your tax situation. Ensure you review, verify, and sign your return before submission to confirm the accuracy and authenticity of the information provided.

No Annexures Required

When using the SUGAM return form, there is no need to upload additional documents, including TDS certificates.