ITR 4 (Sugam) Form : A Detailed Guide on Filling

The presumptive taxation scheme is available for individuals, HUFs , and partnership firms under Section 44AD, Section 44AE, and Section 44DA of the IT Act. Taxpayers using such presumptive schemes can file their tax returns with the help of ITR-4 form, also known as the Sugam form.Let us have a look at who is eligible to file ITR-4 and how to file it-

As mentioned above, ITR-4 or Sugam form can be used by taxpayers using the presumptive taxation scheme. But unlike most other ITR forms, ITR-4 is not mandatory.Taxpayers eligible for declaring their income or profits on a presumptive basis as per Section 44AD, 44AE, or 44DA can use ITR-4 for filing their tax returns. Alternatively, they can also use other forms like ITR-3 or ITR-5 as applicable.

As per the current IT laws, individuals, HUFs, and partnerships having income from the below-mentioned sources are required to file ITR-4 –

• Salary/Pension up to Rs. 50 lakh
• Professions as outlined in Section 44ADA
• Business income as per Section 44AD and 44AE
• House property income (unless there is loss which is to be brought or carried forward)
• Other sources such as lottery, betting, and legal gambling

Taxpayers with business income should not file ITR-4 Sugam if they-

• Maintain account books as per Section 44AA for their profession or business
• Get their account audited and received audit report under Section 44AB for their profession or business

You can file ITR-4 offline only if you are a super senior (above 80 years) or have income under Rs. 5 lakhs and don’t want to claim a tax refund.Others are required to mandatorily file their ITR-4 form online by visiting the e-filing portal of the IT department . Online filing can either be done with digital signature or with the help of EVC (Electronic Verification Code), net banking, or Aadhar OTP.Alternatively, you can also take a printout of ITR-V (acknowledgement) form that you have received after uploading your ITR-4. Sign this form and send it to the CPC Office in Bangalore. From the day you file your ITR-4, you have 120 days to send your ITR-V to the CPC Office.

Make sure that you only use ITR-4 for filing your tax returns if you are eligible for using it. Using a wrong ITR form could result in penalties and can also delay your tax refunds if any.If you are still not able to decide whether ITR-4 is the right choice for you, do consider professional help.Ready to make the most of your money? Start your tax planning journey now!

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.