File ITR-4 (Sugam):
Simple Business Filing
Freelancer, Consultant, or Small Business Owner? File your taxes without the hassle of maintaining complex books of accounts.
What is ITR-4?
ITR-4 (Sugam) is applicable for individuals, HUFs, and firms (other than LLPs) who have opted for the presumptive income scheme under Section 44AD, 44ADA, or 44AE. It simplifies filing by allowing you to declare a fixed percentage of your turnover as income.
Why Choose Credorra?
Even though ITR-4 is simpler, choosing the right section (44AD vs 44ADA) and calculating the correct presumptive income is crucial. We ensure you pay the right tax without overpaying.
Who Can & Cannot File ITR-4?
Who Can File ITR-4?
Individuals, HUFs, and Firms (excluding LLPs) having:
- Business Turnover up to ₹2 Crores (Section 44AD)
- Professional Receipts up to ₹50 Lakhs (Section 44ADA)
- Income from Salary/Pension
- One House Property
- Other Sources (Interest, etc.)
Who Cannot File ITR-4?
You cannot use ITR-4 if you have:
- Turnover exceeding ₹2 Crores (Requires Audit & ITR-3)
- Professional Receipts exceeding ₹50 Lakhs
- Capital Gains Income
- Foreign Assets or Foreign Income
- More than One House Property
- Losses from Business carried forward
Structure of ITR Form 4:
A Comprehensive Overview
ITR-4 focuses on presumptive income calculations:
| Schedule | Description |
|---|---|
| Part A | General Information (PAN, Aadhar, Bank Details) |
| Part B | Gross Total Income (Salary, House Property, Business, Other Sources) |
| BP Schedule | Computation of Presumptive Income (44AD/44ADA/44AE) |
| Part C | Deductions and Taxable Total Income (80C, 80D, etc.) |
| Part D | Tax Computation and Tax Payments |
Types of Income Excluded
ITR-4 is strictly for presumptive taxation. Certain incomes disqualify you from using this form:
- Capital Gains: Any profit from sale of assets (Stocks, Property).
- Speculative Business: Intraday trading income.
- Agency Business: Commission or brokerage income.
- Foreign Assets: Any asset held outside India.
- Director's Remuneration: If you are a director in a company.
Documents & Details Required
Documents Required
- PAN Card & Aadhar Card (Linked)
- Bank Statements (All Accounts)
- Sales/Purchase Register (Summary)
- Details of Advance Tax Paid
- Form 16 (If Salaried)
- Interest Certificates (FD/Savings)
Required Details in ITR-4
- Total Gross Receipts/Turnover
- Applicable Section (44AD/44ADA/44AE)
- Date of Commencement of Business
- Bank Account Details (IFSC, Account No.)
- TDS Details (Form 26AS Matching)
- Investment Proofs (For Deductions)
ITR-4 Due Date
For taxpayers opting for presumptive taxation (and not liable for audit), the due date for filing ITR-4 is 31st July of the Assessment Year.
Filing early helps in avoiding last-minute rush and ensures your business compliance is up to date.
Penalty for Late Filing
Missing the due date can attract penalties under Section 234F:
- Up to ₹5,000: If filed after 31st July but before 31st December.
- ₹1,000: If total income is less than ₹5 Lakhs.
- Interest: Additional interest under Section 234A for delay in tax payment.
- Loss Carry Forward: You cannot carry forward losses if filed late.
Relax While We Handle It
Share Documents
Upload bank statements and sales summary securely.
Expert Calculation
We calculate presumptive income and verify deductions.
Your Approval
We share the computed return with you for final confirmation.
Filing Done
We file the ITR and help you e-verify it via Aadhar OTP.
Common Questions
No, intraday trading is considered speculative business income and cannot be reported under presumptive taxation. You must file ITR-3.
If you opt for presumptive taxation (44AD/44ADA), you are not required to maintain detailed books of accounts. However, you should keep basic records of sales and expenses.
If your turnover exceeds ₹2 Crores, you cannot use ITR-4. You will need to get your accounts audited and file ITR-3.
Yes, you can switch between ITR-3 and ITR-4. However, if you opt out of presumptive taxation once, you cannot opt for it again for the next 5 years.
Focus on Your Business.
We Handle Your Taxes.
Don't let tax filing distract you from growth. Let Credorra's certified experts handle your ITR-4 filing with precision.
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