ITR-4 (Sugam) Filing - Simplified Tax Return for Small Businesses and Professionals
At Vetri Audit Services Private Limited, we assist individuals, small businesses, and professionals in effortlessly filing their income tax return using ITR-4 (Sugam) — a simplified form introduced by the Income Tax Department for taxpayers under the presumptive taxation scheme.
What is ITR-4 (Sugam)?
ITR-4 (Sugam) is an income tax return form used by:
- Individuals
- Hindu Undivided Families (HUFs)
- Firms (other than LLPs)
who have opted for the presumptive taxation scheme under:
| Section | Category | Description |
|---|---|---|
| 44AD | Business Income | Small business owners declaring profits on a presumptive basis |
| 44ADA | Professional Income | Professionals such as doctors, lawyers, engineers, etc. |
| 44AE | Income from Goods Carriage | Transporters owning goods vehicles (up to 10 vehicles) |
Who Can File ITR-4?
You are eligible to file ITR-4 if:
- You are a resident individual, HUF, or firm (non-LLP)
- Your total income does not exceed ₹50 lakh
- Your income includes:
- Business income under Section 44AD
- Professional income under Section 44ADA
- Income from one house property
- Other sources income (like interest, dividends, etc.)
Who Cannot File ITR-4?
You cannot use ITR-4 if:
- Your total income exceeds ₹50 lakh
- You have more than one house property
- You earn income from capital gains
- You have foreign assets or foreign income
- You are a director in a company
- You have income from speculative business or casual income
- You hold unlisted equity shares
- You have carry-forward losses
Presumptive Taxation Scheme - Income Coverage
Under the presumptive scheme, income is computed on a notional basis:
| Section | Type of Income | Presumed Income % |
|---|---|---|
| 44AD | Small Business | 8% of turnover (or 6% for digital receipts) |
| 44ADA | Professionals | 50% of gross receipts |
| 44AE | Transporters | ₹7,500 per vehicle per month (max 10 vehicles) |
Key Details Required in ITR-4
When filing ITR-4, the following information is to be furnished:
- Personal Information - PAN, Aadhaar, contact details
- Income Details - Business, profession, one house property, other sources
- Bank Account Details
- Tax Payments - Advance Tax, TDS/TCS
- Schedules to be filled:
- Schedule BP (Business or Profession)
- Schedule 80G (Donations made)
- Schedule VI-A (Deductions under 80C, 80D, etc.)
Due Date for Filing ITR-4
- 31st July 2025 for the Financial Year 2024–25
- The due date may extend in special cases as notified by the government
Penalties for Late Filing of ITR-4
| Total Income | Penalty Amount | |
|---|---|---|
| Above | ₹5,00,000 | ₹5,000 |
| Up to | ₹5,00,000 | ₹1,000 |
Advantages of Filing ITR-4
- Simplified compliance - No need to maintain books of accounts
- Audit-free - Avoids audit under Section 44AB (unless opted out or turnover limit exceeded)
- Presumptive Taxation - Lower effective tax burden
- Quick Filing Process - Fewer details required compared to other ITR forms
Documents Required (for Reference Only, Not for Upload)
Keep the following documents handy while filing ITR-4:
- PAN & Aadhaar Card
- Bank passbook or bank statements
- Business receipts or books (if not using presumptive scheme)
- Form 26AS, Annual Information Statement (AIS), and Taxpayer Information Summary (TIS)
- Details of investments or deductions under Section 80C to 80U
Need Help Filing ITR-4?
Our experienced tax consultants at Vetri Audit Services Private Limited are here to:
- Assess your eligibility under presumptive taxation
- Prepare and file your ITR-4 accurately
- Ensure timely submission to avoid penalties
Contact us today for a hassle-free ITR-4 filing experience.
Contact us today for a consultation!
