Online ITR-4 (SUGAM) Form Filing in India

Income Tax Returns in India

Income Tax Return is a form containing the information of income and tax paid of the assessee which is used to file the income tax with the Income Tax Department of India. Income tax is a tax imposed by the Central Government of India on income of a person under various criteria and every citizen/entity should file income tax returns. IT-R is verfied by IT department of India. There are various types of IT-R like ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, ITR 7 Income tax ITR-4 form must be filed by taxpayers who have opted for the presumptive income scheme as per Section 44AD, Section 44ADA and Section 44AE of the Income Tax Act. AADHAAR CARD IS MANDATORY FOR INCOME TAX FILING.

ITR-4 SUGAM form filing - Income Tax Returns

ITR-4 SUGAM Form is used by taxpayers who have opted for the presumptive income scheme as per Section 44AD, Section 44ADA and Section 44AE of the Income Tax Act. If the turnover of the business above exceeds Rs 2 crores, the taxpayer will have to file ITR-3.

Under Presumptive Taxation the small taxpayers are exempted from maintenance of books of accounts.

Who is eligible file ITR-4 SUGAM form ?

ITR-4 SUGAM form is used by the individuals/ HUF/ partnership firm/ taxpayers who have opted for the presumptive income scheme. and source of income falls under any below categories :

• Business Income under Section 44AD or Section 44AE
• Income from profession calculated under section 44ADA
• Income up to INR 50 lakhs from Salary/Pension
• Income from One House Property having income up to Rs 50 lakh (excluding the brought forward loss or loss to be carried forward cases under this head)
• Income from other sources up to INR 50 lakhs (Excluding winning from lottery or horse races)
• Freelancers can opt for this form in case their income does not exceed INR 50 lakhs.

Who cannot file ITR-4 SUGAM form ?

ITR-4 SUGAM form should not be filed for below cases :

• An individual having income from salary, more than one house property or other sources above Rs 50 lakh.
• Income under “other sources” like from winning lottery, horse races, income taxable at special rates u/s 115BBDA or 115BBE.
• An individual who is either a director in a company and has invested in unlisted equity shares at any time during the previous year cannot use this form.
• Has agricultural income exceeding INR 5,000
• In case of loss under “income from other sources” or brought forward loss or loss which is to be carried forward under any income head
• In case of income which is to be apportioned in accordance with the provisions of Section 5A
• If claim of relief taken under Sections 90, 90A or 91
• In case of any deduction claim taken under Section 57 (except deduction relating to family pension)
• In case claim of tax credit which has been deducted at source in the hands of another person
• If a taxpayer has joint ownership in house property (Included in AY 20-21)
• Income from assets/financial interest in an entity outside India
• Income from signing authority in an account outside India
• Income from source outside of India
• In case of profits from a business or profession which is not required to be computed under sections 44AD, 44ADA or 44AE, like income from commission, brokerage, etc.

Benefits of Presumptive Taxation Scheme (ITR-4 SUGAM)

There is no requirement of maintenance of books of accounts.

The net income is estimated to be 8% of gross cash receipts of your business. However, for payments received via digital mode, the net income is assumed to be 6% of such gross receipts.

The business owner has to pay 100% Advance Tax by 15th of March. There is no need to comply with quarterly installments of due dates of Advance tax (i.e. in June, Sep, Dec) of advance tax.

Deduction of any business expense against this income is not allowed.

Documents Required For ITR-4 SUGAM Filing

Individual Documents

Aadhaar card of Individual/ Owner/ Director/ Designated Partner

PAN card of Individual/ Owner/ Director/ Designated Partner

Primary Phone Number and Email ID

Bank Statments

Investment related data(IF any)

Other income related details

Other Documents

Data for income from share trading, fixed securities,section 80 etc.

Income and Expenditure details, if any

Interest declaration – Interest on savings accounts via 80TTA

Statement of receipts and payments when no regular books are maintained

TDS- Form 26AS related data

Other business related documents (In case of business)

In case of business,you are required to share Business or Profession Details,Business Expenses, Business Loan, and Books of Accounts (if available), Investments, Sales and Purchase Details, Any other incomes, Investments or Savings details .

You may refer to the Eligibility section before return filing.

For further queries kindly refer our FAQ section

Stages For ITR 4 SUGAM filing through Legal Munshi

Stage 1. Aaadhaar & PAN Card :

Arrange for Aadhaar card and PAN card of Individual whose return is to be filied.

Stage 2. Documents, Email & Phone number:

Arrange for all the documents whose list will be shared by our expert along with primary email and phone number for communication purposes by IT department.

Stage 3. Bank Details :

Arrange for the bank details which is to be mentioned for refund purposes.

Stage 4. Computation of Income and Tax Amount :

Based on the documents shared our expert will compute the income tax and compile TDS value based on form 26AS for that financial year.

Stage 5. Determine Income Tax Return Form :

Based on computation and approval from you, ITR 3 will be filed.

Stage 6. Filing of Return :

Once the filing is done,our expert will provide you with acknowledgement.

Procedure for ITR 4 SUGAM filing with Legal Munshi

Step 1 : Complete Our Simple Online form

You have to provide the details in the form.

Step 2 : Expert Guidance

Once you have provided the details, our expert will guide you with the all the documents required for return filing process.

Step 3 : Return Filing

After submission and upon successful verification of all the required documents, one of our experts will do the return filing.

Step 4 : Congratulations!!!

Once the filing is done we will inform you and provide the necessary documents.

Presumptive Income & its Taxation – under section 44AD (Scheme for SMEs)

Income Tax Department has given simple provisions from financial year 2016-2017, where income is assumed based on the gross receipts of the business. This method is called the presumptive method, where tax is paid on an estimated basis.

From F.Y. 2016-17 onwards, businesses having a turnover of upto Rs. 02 crores can opted for / register under the presumptive taxation scheme. The rates of presumed income is set at 8% for the inancial year under this scheme. Further, there is no higher limit set for charges. So a taxpayer can willingly declare income higher than mandatory 8% of total turnover.

Eligibility Criteria for this Scheme :

• Gross receipts / turnover should be less tha Rs. 2 Crores in that financial year.
• Taxpayer should be a resident of India.
• Taxpayer may be in any business – retail trading or wholesale trading or civil construction or any other business except business mentioned below.
• Eligible only to an individual, a HUF or a partnership firm.
• Taxpayer should not have claimed deduction under section 10, 10A, 10B, Section 10BA, or Section 80HH to 80RRB in the financial year

This Scheme is NOT applicable to :

• Agency Business.
• Income from commission or brokerage.
• Professionals from field of Information Technology(IT), Medical, Legal, Engineering, Technical consultancy, Film artist, Architectural, Interior decoration, Accountancy(CA) and Company secretary (CS).
• Business under Section 44AE, 44ADA, 44AA(1)

Presumptive Income & its Taxation – under section 44ADA (Scheme for Professionals)

Income Tax Department has extended the presumptive taxation scheme also for professionals.

To avail this scheme for return filing, the professionals should have gross receipts from professional services not exceeding Rs. 50 lakhs in a financial year. Under the presumptive taxation scheme (Section 44ADA), 50% of the total receipts of the professional services during the financial year would be considered as profit and get taxed under the income tax head, “Profits and gains of business or profession” Professionals can declare income more than the mandatory 50% of the total receipts and can claim deduction with respect to salary and interest paid to partners during return filing. Professionals opting for this scheme are not requirement of maintain of books of Account as well as auditing.

Eligibility Criteria for this Scheme :

• Gross receipts / turnover should be less tha Rs. 50 lakhs in that financial year.
• Taxpayer should be a resident of India.
• Taxpayer may be Professionals from field of Information Technology(IT), Medical, Legal, Engineering, Technical consultancy, Architectural, Interior decoration, Accountancy(CA) and Company secretary (CS) except business mentioned below.
• Eligible only to an individual, HUF or Partnership and not LLP (Limited Liability Partnership Firm)
• Taxpayer should not have claimed deduction under Sections 30 to 38, including depreciation on assets in the financial year

This Scheme is NOT applicable to :

• LLP (Limited Liability Partnership Firm).
• Company.
• Business under Section 44AD,44AE

Presumptive Income & its Taxation – under section 44AE (Scheme for Transporters)

Income Tax Department has extended the presumptive taxation scheme also for transporters.

This scheme is for individuals involved in plying, leasing or hiring of goods carriages like trucks and and owning less than 10 goods carriages. Taxpayers enrolled under the presumptive taxation scheme for transporters can calculate there net income to be 7,500 for each vehicle every month or part of a month thereof during the F.Y. for all types of goods carriage vehicles, heavy or light owned. This calculation is irrespective of light goods vehicle(less than or equal to 12000 kgs) or heavy goods vehicle (more than 12000 kgs) Taxpayer opting for this scheme is not required to maintain books of accounts. The advance tax has to be paid 100% by 15th March for such businesses and no need to comply with the requirement of quarterly instalments due dates (June, Sep, Dec) of advance tax.

Eligibility Criteria for this Scheme :

• Taxpayer should be a resident of India.
• Taxpayer should be in the business of plying, leasing or hiring goods carriages.
• Eligible only to all taxpayers - an individual, HUF, partnership firm or company.
• Taxpayer should not own more than 10 goods carriages at any time during the year including carriages taken on hire purchase or on instalments.
• Taxpayer is NOT allowed to deduct any business expenses against the income

FAQs on ITR-4 SUGAM Filing

What is ITR Filing?

Know more about ITR-4 here.

What are the benefits of ITR-4 Filing?

You can get the details about it here.

What documents are required for the registration?

Refer to the required documents list here.

What is Computing Turnover or Gross Receipts ?

Gross receipts or Turnover mean the total collections of the business including GST (if applicable). The receipts shall include delivery charges as well as receipts from the sale of scrap etc excluding discounts given, advances received and money received on sale of assets.

What is Presumptive Scheme for SME's – under section 44AD ?

Refer to the details here.

What are the deduction for Business Expenses under section 44AD?

No business expenses and depreciation are allowed to be deducted from the net income. In case of a partnership, a separate deduction for remuneration of partners and interest paid to partners is allowed within the limit specified under section 40(b). Even though depreciation is not allowed as a deduction written down value (WDV) of the assets shall be considered.

Can the taxpayer declare higher or lower income under section 44AD?

The taxpayer can voluntarily declare a higher income and pay tax on it. In case the taxpayer chooses to declare lower income than 8% of gross receipts – he shall have to maintain books of accounts and get them audited.

What is Presumptive Scheme for Professionals – under section 44ADA ?

Refer to the details here.

What are the deduction for Business Expenses under section 44ADA?

No business expenses and depreciation are allowed to be deducted from the net income. In case of a partnership, a separate deduction for remuneration of partners and interest paid to partners is allowed within the limit specified under section 40(b). Even though depreciation is not allowed as a deduction written down value (WDV) of the assets has been allowed..

Can the taxpayer declare higher or lower income under section 44ADA?

The taxpayer can voluntarily declare a higher income and pay tax on it.

What is Presumptive Scheme for Transporters – under section 44AE ?

Refer to the details here.

What are the deduction for Business Expenses under section 44AE?

No business expenses and depreciation are allowed to be deducted from the net income. In case of a partnership, a separate deduction for remuneration of partners and interest paid to partners is allowed within the limit specified under section 40(b). Even though depreciation is not allowed as a deduction written down value (WDV) of the assets shall be considered.

Can the taxpayer declare higher or lower income under section 44AE?

The taxpayer can voluntarily declare a higher income and pay tax on it.

What is Revised Return?

If you have already filed your income tax return but you later discover that you have made a mistake in it, you can re-file. This is called a Revised Return.

What is Notice Number?

You should fill this in only if you are filing your return in response to a notice from the Income Tax Department.

What is Advance Tax ?

For salaried individuals, TDS mostly takes care of advance tax payments. However you might have other forms of income – like interest on savings bank accounts,etc. If tax on income is more than Rs. 10,000 per year, than you are required to estimate your income and pay Advance Tax. This has to be paid in quarterly installments in June, September, December and March.

What is Self Assessment Tax Payments?

Refer to the required documents list here.

What is Annexure-less Return?

ITR-4 Form is an Annexure-less return. This means that you do not have to attach any documents (such as Form 16/Form 26AS) with the ITR-4 Form.