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What is ITR 4 Return?

For taxpayers who have chosen to participate in the presumptive income system described in Sections 44AD, 44ADA, and 44AE of the Income Tax Act, there is a form called ITR-4, sometimes known as the Sugam form. For qualifying taxpayers, completing and submitting this form is required. However, ITR-3 should be employed by companies whose yearly revenue exceeds Rs. 2 crores. Additionally, ITR-5 can be necessary based on specific conditions. For the filing of the ITR 4 income tax, we provide professional support. For a precise and seamless filing procedure, get in touch with our professionals right now.

What is a Presumptive Taxation Scheme?

For some people and corporations, the presumptive taxation method is meant to make tax compliance easier. Individuals and businesses involved in certain activities are generally required to keep thorough accounting records under Section 44AA of the Income Tax Act. To alleviate the difficulty of keeping copious financial records, small taxpayers can estimate their income at established rates thanks to Sections 44AD, 44ADA, and 44AE. Below is an explanation of various methods for ITR4 users:

Section 44AD

As long as they meet certain requirements, this plan enables resident individuals, resident Hindu Undivided Families (HUFs), and resident partnership firms (except from Limited Liability Partnerships) involved in particular activities to compute their income on an approximated basis.

Section 44ADA

Subject to specific requirements, residents of India who work as professionals in the sectors listed under Section 44AA(1) may use this program to estimate their professional income.

Section 44AE

Individuals, HUFs, Firms (except limited liability partnerships), and any residents or non-residents involved in the plying, leasing, or hiring of goods carriages are all eligible for this scheme. If they owned no more than 10 goods carriages in the previous year, they might estimate their income using this plan.

Eligibility Criteria for Filing SUGAM (ITR-4) Form

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

• There shouldn't be more than Rs. 50 lakh in total income.
• Earnings from a pension or salary.
• Revenue from a single residential property.
• Income from family pensions and/or interest are taxable under other sources.
• Income from a firm (gross turnover up to Rs. 2 crores), calculated on an assumed basis.
• Presumptive basis income from a firm (income from goods carriage up to 10 cars).
• Income from a profession, as determined under Section 44ADA (Gross receipt up to Rs. 50 lakh), on an assumed basi