ITR- 4 Filing
The ITR-4 Form, commonly referred to as the Sugam form, is specifically designed for taxpayers who have opted for the presumptive income scheme outlined in Section 44AD, Section 44ADA, and Section 44AE of the Income Tax Act. It is mandatory for eligible taxpayers to complete and submit this form.
However, for businesses with an annual turnover exceeding Rs. 2 Crores, ITR-3 should be used. Additionally, depending on individual circumstances, ITR-5 may also be required. IndiaFilings offers expert assistance for the filing of ITR-4. Contact our experts today to ensure a smooth and accurate filing process.
Who is Eligible to file Form ITR 4?
ITR-4 is the Income Tax Return form designed for individuals, Hindu Undivided Families (HUFs), and firms (excluding Limited Liability Partnerships or LLPs) who choose to utilize the presumptive income scheme as per Sections 44AD, 44ADA, and 44AE of the Income Tax Act.
What is a Presumptive Taxation Scheme?
The presumptive taxation scheme is designed to simplify tax compliance for certain individuals and businesses. Under Section 44AA of the Income Tax Act, individuals and businesses engaged in specific activities are typically required to maintain detailed accounting records. However, Sections 44AD, 44ADA, and 44AE offer relief to small taxpayers by allowing them to estimate their Income at prescribed rates, reducing the burden of maintaining extensive financial records. Here's a breakdown of these schemes for users of ITR-4: