ITR-4 Return Filing
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ITR-4 Return Filing
File your ITR-4 tax return with confidence. The Sugam form is the simplified option for small businesses and professionals in India who’ve opted for the presumptive income scheme. At FileMyFirm, we’re experts in simplifying the ITR-4 filing process, ensuring accuracy and full compliance with all tax regulations.
What is the Presumptive Taxation Scheme?
The presumptive taxation scheme allows small taxpayers to declare a fixed percentage of their turnover or gross receipts as taxable income. This removes the need to maintain detailed books of accounts or get them audited, significantly reducing compliance burden. This scheme is governed by three key sections of the Income Tax Act:
- Section 44AD: For businesses with a turnover below a specific limit, provided cash receipts don’t exceed a certain percentage of the total turnover. The presumptive income is a fixed percentage of the turnover, with a lower rate for digital receipts.
- Section 44ADA: For specified professionals, if their gross receipts are below a certain limit. The presumptive income is a fixed percentage of total receipts.
- Section 44AE: For businesses involved in plying, hiring, or leasing goods carriages, who own a maximum number of vehicles.
Who Should File ITR-4 (Sugam)?
The ITR-4 form is for resident individuals, Hindu Undivided Families (HUFs), and firms (excluding LLPs) with a total annual income below a certain threshold. It’s suitable if your income comes from:
- A business or profession under the presumptive scheme.
- Salary or pension.
- A single house property.
- Other sources like interest and family pension.
- Agricultural income below a specific limit.
- Long-term capital gains (LTCG) from listed shares below a certain amount, with no carried-forward losses.
Who Cannot Use the Sugam Form?
You are ineligible to file ITR-4 if you:
- Have a total income exceeding the specified threshold.
- Are a company director or have held unlisted equity shares.
- Are a non-resident or a Resident Not Ordinarily Resident (RNOR).
- Have foreign assets or foreign income.
- Have capital gains (with certain exceptions), income from lotteries, or more than one house property.
- Are claiming a carry-forward loss from a previous year.
Key Deadlines and Penalties for ITR-4
For the financial year 2024-25 (AY 2025-26), the due date to file your ITR-4 (for non-audit cases) is September 16, 2025. Filing after this deadline can lead to penalties:
- A late fee is imposed for returns filed after the due date but before December 31, 2025.
- This late fee is capped at a lower amount if your total income is below a certain threshold.
FileMyFirm makes your ITR-4 return filing simple and stress-free. Our tax experts provide guidance and ensure your return is accurate and filed on time to help you avoid penalties. Contact us today for a seamless tax filing experience.
Frequestly asked questions ( FAQ )
ITR-4, also known as Sugam (meaning “easy” or “simplified”), is the Income Tax Return form for small taxpayers (resident individuals, HUFs, and firms, excluding LLPs) who opt for the Presumptive Taxation Scheme. This scheme allows them to declare a fixed percentage of their turnover or gross receipts as taxable income, eliminating the need to maintain detailed books of accounts or get them audited. This scheme is governed by Sections 44AD (for businesses), 44ADA (for specified professionals), and 44AE (for businesses plying goods carriages).
The ITR-4 form is generally for resident individuals, HUFs, and firms (excluding LLPs) who:
Have a total annual income below a specified threshold.
Derive income from a business or profession under the Presumptive Taxation Scheme (Sections 44AD, 44ADA, or 44AE).
Have income from Salary or Pension.
Have income from a Single House Property.
Have income from Other Sources (like interest).
Have Agricultural Income below a specific limit.
You cannot file using ITR-4 if you:
Are a Non-Resident Indian (NRI) or a Resident Not Ordinarily Resident (RNOR).
Are a Company Director or hold unlisted equity shares.
Have a total income exceeding the specified threshold.
Have income from Capital Gains (with certain exceptions), Lotteries, or More than One House Property.
Have income that requires the maintenance of full books of accounts (i.e., you do not opt for or are ineligible for the presumptive scheme).
Are claiming a carry-forward loss from a previous year.
The primary benefit is simplification and reduced compliance burden. Taxpayers under this scheme declare a deemed profit (e.g., 6% or 8% of turnover for businesses, or 50% of gross receipts for specified professionals) and are exempted from maintaining detailed books of accounts. This saves time and cost associated with bookkeeping and mandatory audits.
Although ITR-4 is simple and doesn’t require attaching documents, you must have the following information to accurately report your presumptive income:
PAN Card and Aadhaar Card.
Bank Statements: To verify total receipts and digital/cash percentages (which impacts the presumptive profit rate).
Form 26AS/AIS/TIS: To reconcile your Tax Deducted at Source (TDS) and other tax credits.
Turnover/Gross Receipts Details: The total amount of money received or earned during the financial year is necessary to calculate the presumptive income.