ITR-4 (Sugam) is meant for Individuals, HUFs, and Firms (excluding LLPs) opting for presumptive taxation under Sections 44AD, 44ADA, or 44AE. It is suitable for small businesses and professionals with total income up to ₹50 lakhs.
Section 44AD allows eligible businesses with turnover up to ₹2 crore to declare 8% of gross receipts (or 6% for digital transactions) as income, without maintaining books of accounts or undergoing audit.
Professionals such as doctors, lawyers, architects, consultants, and similar professionals with gross receipts up to ₹50 lakhs can opt for Section 44ADA and declare 50% of receipts as income without maintaining detailed books.
Yes, Chapter VI-A deductions such as LIC, PPF, medical insurance, and other eligible deductions under Sections 80C to 80U can be claimed in ITR-4, subject to valid proof. However, separate business expense claims are not allowed.
Salaried individuals can file ITR-4 only if they also have presumptive business or professional income and total income does not exceed ₹50 lakhs. Pure salaried individuals should file ITR-1 or ITR-2, as applicable.
Filing an incorrect ITR form can result in a defective return notice under Section 139(9). If not corrected within the prescribed time, the return may be treated as invalid and penalties or interest may apply.
No, taxpayers opting for presumptive taxation under ITR-4 are not required to maintain books of accounts under Section 44AA. However, maintaining basic records is recommended for internal reference.
Tax audit is not required if income is declared at or above the prescribed presumptive rate and total income is within limits. If income is declared lower than the presumptive rate and basic exemption limits are exceeded, audit becomes mandatory.
Yes, switching is allowed, but frequent switching is discouraged. Under Section 44AD, opting out after choosing presumptive taxation restricts re-entry for five years. This restriction does not apply to professionals under Section 44ADA.
No, ITR-4 cannot be filed if you have capital gains income. In such cases, you must file ITR-2 or ITR-3 depending on other income sources.
Yes, e-verification is mandatory to complete the filing process. It can be done via Aadhaar OTP, net banking, EVC, or by submitting a signed ITR-V to CPC Bengaluru within 30 days.
Yes, you can revise your ITR-4 if any error or omission is discovered. The revised return must be filed before the end of the assessment year or before assessment completion, whichever is earlier.
For non-audit cases, the due date is generally 31st July of the assessment year. Audit cases follow extended timelines as notified under the Income Tax Act.
Offline filing is permitted only for super senior citizens (80 years or above) or in limited specified cases. Most taxpayers must file ITR-4 online through the Income Tax e-filing portal.
Udyog Suvidha Kendra provides end-to-end support including eligibility assessment, document verification, accurate filing, deduction review, e-verification, and post-filing assistance to ensure compliance and timely submission.
