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ITR-4 (SUGAM) Return Filing
Presumptive Income Tax Return for Small Businesses & Professionals
As per Income Tax Act, 1961 | Income Tax Department (India)
Overview
Who Should File
Presumptive Sections
Documents Required
Filing Process
Due Date & Penalty
FAQs
ITR-4 (SUGAM) is applicable to resident Individuals, HUFs, and Firms (other than LLP) who opt for the Presumptive Taxation Scheme.
Under this scheme, income is declared at a prescribed percentage of turnover, eliminating the need to maintain detailed books of accounts.
Who Can File ITR-4?
- Resident Individual / HUF / Partnership Firm (non-LLP)
- Small traders, shop owners, service providers
- Freelancers & professionals opting presumptive taxation
- Total income up to ₹50 lakh
Who Cannot File ITR-4?
- Companies & LLPs
- Non-resident or RNOR individuals
- Persons having capital gains
- Income from more than one house property
- Foreign income or foreign assets
Presumptive Taxation Sections Covered
| Section | Applicable To | Presumptive Income |
|---|---|---|
| 44AD | Small businesses | 8% of turnover (6% for digital receipts) |
| 44ADA | Professionals | 50% of gross receipts |
| 44AE | Transport operators | Fixed income per vehicle |
Once opted, presumptive scheme has lock-in conditions in some cases.
Documents Required for ITR-4 Filing
- PAN Card & Aadhaar Card
- Bank account details
- Turnover / gross receipts summary
- GST returns (if applicable)
- Form 26AS, AIS & TIS
- Details of advance tax paid
Detailed books of accounts are not required under presumptive taxation.
ITR-4 Filing Process
- Confirm eligibility for presumptive taxation
- Collect turnover / receipt details
- Verify AIS, TIS & Form 26AS
- Compute tax liability
- Prepare & file ITR-4 online
- e-Verification of return
Due Date & Late Filing Penalty
- Normal due date: 31st July
- Late fee up to ₹5,000 (Section 234F)
- Interest under Sections 234A/B/C
Incorrect use of presumptive scheme may lead to scrutiny and penalties.
Frequently Asked Questions (FAQs)
- Is audit required for ITR-4? – No.
- Can professionals file ITR-4? – Yes, under Section 44ADA.
- Is GST mandatory? – Not mandatory, but details may be required.
- Can I switch to normal taxation later? – Yes, subject to conditions.
- Is balance sheet required? – No.
ITR-4 (SUGAM) Return Filing
Presumptive Income Tax Return for Small Businesses & Professionals
As per Income Tax Act, 1961 | Income Tax Department (India)
Overview
Who Should File
Presumptive Sections
Documents Required
Filing Process
Due Date & Penalty
FAQs
ITR-4 (SUGAM) is applicable to resident Individuals, HUFs, and Firms (other than LLP) who opt for the Presumptive Taxation Scheme.
Under this scheme, income is declared at a prescribed percentage of turnover, eliminating the need to maintain detailed books of accounts.
Who Can File ITR-4?
- Resident Individual / HUF / Partnership Firm (non-LLP)
- Small traders, shop owners, service providers
- Freelancers & professionals opting presumptive taxation
- Total income up to ₹50 lakh
Who Cannot File ITR-4?
- Companies & LLPs
- Non-resident or RNOR individuals
- Persons having capital gains
- Income from more than one house property
- Foreign income or foreign assets
Presumptive Taxation Sections Covered
| Section | Applicable To | Presumptive Income |
|---|---|---|
| 44AD | Small businesses | 8% of turnover (6% for digital receipts) |
| 44ADA | Professionals | 50% of gross receipts |
| 44AE | Transport operators | Fixed income per vehicle |
Once opted, presumptive scheme has lock-in conditions in some cases.
Documents Required for ITR-4 Filing
- PAN Card & Aadhaar Card
- Bank account details
- Turnover / gross receipts summary
- GST returns (if applicable)
- Form 26AS, AIS & TIS
- Details of advance tax paid
Detailed books of accounts are not required under presumptive taxation.
ITR-4 Filing Process
- Confirm eligibility for presumptive taxation
- Collect turnover / receipt details
- Verify AIS, TIS & Form 26AS
- Compute tax liability
- Prepare & file ITR-4 online
- e-Verification of return
Due Date & Late Filing Penalty
- Normal due date: 31st July
- Late fee up to ₹5,000 (Section 234F)
- Interest under Sections 234A/B/C
Incorrect use of presumptive scheme may lead to scrutiny and penalties.
Frequently Asked Questions (FAQs)
- Is audit required for ITR-4? – No.
- Can professionals file ITR-4? – Yes, under Section 44ADA.
- Is GST mandatory? – Not mandatory, but details may be required.
- Can I switch to normal taxation later? – Yes, subject to conditions.
- Is balance sheet required? – No.
Income Tax Return (ITR) Forms – Complete Comparison
ITR-1 to ITR-7 | Applicability, Documents & Due Dates (India)
ITR Comparison
Documents Required
Due Date & Audit
📊 ITR-1 to ITR-7 Comparison Table
| ITR Form | Who Should File | Income Covered | Business Income |
|---|---|---|---|
| ITR-1 (Sahaj) | Resident Individuals | Salary, 1 House Property, Other Sources | No |
| ITR-2 | Individuals / HUFs | Capital Gains, Multiple Properties, Foreign Income | No |
| ITR-3 | Individuals / HUFs | Business / Professional Income | Yes |
| ITR-4 (Sugam) | Individuals / HUFs / Firms | Presumptive Income | Yes (Presumptive) |
| ITR-5 | Firms, LLPs, AOPs | Business & Other Income | Yes |
| ITR-6 | Companies | All Income (Except Exempt) | Yes |
| ITR-7 | Trusts / NGOs / Institutions | Exempt Income | Specific |
Filing the wrong ITR form may result in a Defective Return Notice (Section 139(9)).
📂 Documents Required – ITR-Wise
ITR-1
- PAN & Aadhaar
- Form-16
- Bank statement
- Form 26AS / AIS
ITR-2
- PAN & Aadhaar
- Capital gains statement
- Property sale/purchase documents
- Foreign income/assets details
ITR-3
- Books of accounts
- Profit & Loss Account
- Balance Sheet
- GST returns (if applicable)
- Audit report (if applicable)
ITR-4
- Turnover / receipt summary
- Bank statement
- GST details (if registered)
ITR-5
- PAN of Firm / LLP
- Partnership Deed / LLP Agreement
- Balance Sheet & P&L
- Audit report (if applicable)
ITR-6
- Company PAN
- MOA & AOA
- Audited financial statements
- Tax audit report
ITR-7
- Trust Deed / MOA
- 12AB / 10(23C) Registration
- Audit Report (Form 10B / 10BB)
- Donation & utilization details
📅 Due Date & Audit Applicability
| ITR Form | Audit Applicable | Due Date |
|---|---|---|
| ITR-1 / ITR-2 / ITR-4 | No | 31st July |
| ITR-3 / ITR-5 | Yes (If applicable) | 31st July / 31st October |
| ITR-6 | Yes (Mandatory) | 31st October / 30th November |
| ITR-7 | Yes | 31st October |
Audit report must be filed before filing the Income Tax Return.
Income Tax Return (ITR) Forms – Complete Comparison
ITR-1 to ITR-7 | Applicability, Documents & Due Dates (India)
ITR Comparison
Documents Required
Due Date & Audit
📊 ITR-1 to ITR-7 Comparison Table
| ITR Form | Who Should File | Income Covered | Business Income |
|---|---|---|---|
| ITR-1 (Sahaj) | Resident Individuals | Salary, 1 House Property, Other Sources | No |
| ITR-2 | Individuals / HUFs | Capital Gains, Multiple Properties, Foreign Income | No |
| ITR-3 | Individuals / HUFs | Business / Professional Income | Yes |
| ITR-4 (Sugam) | Individuals / HUFs / Firms | Presumptive Income | Yes (Presumptive) |
| ITR-5 | Firms, LLPs, AOPs | Business & Other Income | Yes |
| ITR-6 | Companies | All Income (Except Exempt) | Yes |
| ITR-7 | Trusts / NGOs / Institutions | Exempt Income | Specific |
Filing the wrong ITR form may result in a Defective Return Notice (Section 139(9)).
📂 Documents Required – ITR-Wise
ITR-1
- PAN & Aadhaar
- Form-16
- Bank statement
- Form 26AS / AIS
ITR-2
- PAN & Aadhaar
- Capital gains statement
- Property sale/purchase documents
- Foreign income/assets details
ITR-3
- Books of accounts
- Profit & Loss Account
- Balance Sheet
- GST returns (if applicable)
- Audit report (if applicable)
ITR-4
- Turnover / receipt summary
- Bank statement
- GST details (if registered)
ITR-5
- PAN of Firm / LLP
- Partnership Deed / LLP Agreement
- Balance Sheet & P&L
- Audit report (if applicable)
ITR-6
- Company PAN
- MOA & AOA
- Audited financial statements
- Tax audit report
ITR-7
- Trust Deed / MOA
- 12AB / 10(23C) Registration
- Audit Report (Form 10B / 10BB)
- Donation & utilization details
📅 Due Date & Audit Applicability
| ITR Form | Audit Applicable | Due Date |
|---|---|---|
| ITR-1 / ITR-2 / ITR-4 | No | 31st July |
| ITR-3 / ITR-5 | Yes (If applicable) | 31st July / 31st October |
| ITR-6 | Yes (Mandatory) | 31st October / 30th November |
| ITR-7 | Yes | 31st October |
Audit report must be filed before filing the Income Tax Return.
Comparison: ITR-3 vs ITR-4
Choose the Correct Income Tax Return for Business & Professionals (India)
As per Income Tax Act, 1961
📊 ITR-3 vs ITR-4 – Quick Comparison
| Particulars | ITR-3 | ITR-4 (SUGAM) |
|---|---|---|
| Applicable To | Business owners & professionals (normal taxation) | Small businesses & professionals opting presumptive scheme |
| Taxation Method | Actual income & expenses | Presumptive income |
| Relevant Sections | Normal provisions | 44AD / 44ADA / 44AE |
| Books of Accounts | Mandatory | Not required |
| Audit Requirement | Applicable if limits crossed | Not applicable |
| Income Limit | No upper limit | Up to ₹50 lakh |
| Business Turnover | No restriction | Up to ₹2 crore (44AD) |
| Professional Receipts | No restriction | Up to ₹50 lakh (44ADA) |
| Capital Gains Allowed | Yes | No |
| Foreign Income / Assets | Allowed | Not allowed |
| Multiple House Properties | Allowed | Not allowed |
| GST Details | Usually required | Basic turnover info only |
| Ideal For | Growing businesses, traders, consultants | Small traders, freelancers, professionals |
✔ Choose ITR-4 if:
• You want simple taxation
• You don’t want to maintain books
• Your income is within presumptive limits
• You want simple taxation
• You don’t want to maintain books
• Your income is within presumptive limits
✔ Choose ITR-3 if:
• You want to claim actual expenses
• Your income exceeds presumptive limits
• You have capital gains or foreign income
• You want to claim actual expenses
• Your income exceeds presumptive limits
• You have capital gains or foreign income
Important: Filing the wrong ITR may lead to
defective return notices or scrutiny.
Always select the return based on income structure.
📞 Need Help Choosing the Right ITR?
GSTBUY.COM provides expert guidance to ensure correct ITR selection, accurate filing, and maximum tax compliance.
Comparison: ITR-3 vs ITR-4
Choose the Correct Income Tax Return for Business & Professionals (India)
As per Income Tax Act, 1961
📊 ITR-3 vs ITR-4 – Quick Comparison
| Particulars | ITR-3 | ITR-4 (SUGAM) |
|---|---|---|
| Applicable To | Business owners & professionals (normal taxation) | Small businesses & professionals opting presumptive scheme |
| Taxation Method | Actual income & expenses | Presumptive income |
| Relevant Sections | Normal provisions | 44AD / 44ADA / 44AE |
| Books of Accounts | Mandatory | Not required |
| Audit Requirement | Applicable if limits crossed | Not applicable |
| Income Limit | No upper limit | Up to ₹50 lakh |
| Business Turnover | No restriction | Up to ₹2 crore (44AD) |
| Professional Receipts | No restriction | Up to ₹50 lakh (44ADA) |
| Capital Gains Allowed | Yes | No |
| Foreign Income / Assets | Allowed | Not allowed |
| Multiple House Properties | Allowed | Not allowed |
| GST Details | Usually required | Basic turnover info only |
| Ideal For | Growing businesses, traders, consultants | Small traders, freelancers, professionals |
✔ Choose ITR-4 if:
• You want simple taxation
• You don’t want to maintain books
• Your income is within presumptive limits
• You want simple taxation
• You don’t want to maintain books
• Your income is within presumptive limits
✔ Choose ITR-3 if:
• You want to claim actual expenses
• Your income exceeds presumptive limits
• You have capital gains or foreign income
• You want to claim actual expenses
• Your income exceeds presumptive limits
• You have capital gains or foreign income
Important: Filing the wrong ITR may lead to
defective return notices or scrutiny.
Always select the return based on income structure.
📞 Need Help Choosing the Right ITR?
GSTBUY.COM provides expert guidance to ensure correct ITR selection, accurate filing, and maximum tax compliance.
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