ITR 4 Form (SUGAM) – What is ITR 4, Eligibility & Who Can File ITR 4?

ITR 4 Form (Sugam) is an Income Tax Return form designed for taxpayers who opt for a presumptive income scheme under Sections 44AD, 44ADA, and 44AE of the Income-tax Act, 1961. Here are the key points:

1. Eligibility for ITR 4 Form (Sugam)  – 
   • Small business owners who don’t maintain detailed books of accounts but only a sales ledger (e.g., online sellers, traders, wholesalers, manufacturers).
   • Freelancers (content writers, bloggers, vloggers, etc.).
   • Professionals (chartered accountants, doctors, lawyers, engineers) whose income is computed on a presumptive basis.
   • Individuals with salary income and additional income from freelancing or part-time business.
2. Turnover Limit –
   • If your business turnover exceeds ₹2 crore, you’ll need to file ITR-3 instead.
3. Changes for AY 2024-25 – 
   • The default tax regime now follows the new tax regime introduced by the Finance Act 2023 (Section 115BAC). Taxpayers must explicitly opt out if they prefer the old regime.
     

     Category	Limits before the budget	Revised limits
     Section 44AD: For small businesses	₹2 crores	₹3 crores*
     Section 44ADA: For professionals like doctors, lawyers, engineers, etc.	₹50 lakhs	₹75 lakhs*

     Note: *If the amount received in cash in the previous year does not exceed 5% of the total turnover

     ITR-4 now includes a column for disclosing the amount eligible for deduction under Section 80CCH.

   • This section was introduced by the Finance Act 2023, allowing individuals enrolled in the Agnipath Scheme and subscribing to the Agniveer Corpus Fund to claim a tax deduction for the total amount deposited in the Agniveer Corpus Fund.
4. The due date for filing ITR-4 for the assessment year 2024-2025 is July 31, 2024

    

Who is eligible to file ITR 4 Form (Sugam) 

ITR-4 can be filed by a Resident Individual / HUF / Firm (other than LLP) who has –

• Income not exceeding ₹50 Lakh during the FY
• Income from Business and Profession which is computed on a presumptive basis u/s 44AD, 44ADA or 44AE
• Income from Salary/Pension, one House Property, Agricultural Income (up to ₹ 5000/-)
• Other Sources which include (excluding winning from Lottery and Income from Race Horses):
  • Interest from Savings Account
  • Interest from Deposit (Bank / Post Office / Cooperative Society)
  • Interest from Income Tax Refund
  • Family Pension
  • Interest received on enhanced compensation
  • Any other Interest Income (e.g., Interest Income from Unsecured Loan)

 

Who is not eligible to file ITR 4 Form (Sugam) 

ITR-4 cannot be filed by an individual / HUF / Firm (Other than LLP) who –

• is a Resident but Not Ordinarily Resident (RNOR),  or Non-Resident Indian
• has total income exceeding ₹ 50 Lakh
• has agricultural income in excess of ₹5,000/-
• is a Director in a Company
• has income from more than one House Property
• has income of the following nature
  • winnings from lottery
  • activity of owning and maintaining race horses
  • income taxable at special rates  u/s115BBDA or Section 115BBE
• has held any unlisted equity shares at any time during the previous year
• has deferred income tax on ESOP received from employer being an eligible start-up
• is not covered under the eligibility conditions for ITR-4.

 

Key Features of Presumptive Taxation Scheme under ITR 4 Form (Sugam) 

• Eligibility – 
  • Section 44AD: Applicable to resident individuals, Hindu Undivided Families (HUFs), and partnerships (except LLPs) engaged in any business (except those mentioned in the negative list) with a turnover or gross receipts of up to ₹2 crore.
  • Section 44ADA: Applicable to resident individuals and partnerships (except LLPs) engaged in specified professions (legal, medical, engineering, architectural, accountancy, technical consultancy, interior decoration, etc.) with gross receipts of up to ₹50 lakh.
  • Section 44AE: Applicable to taxpayers engaged in the business of plying, hiring, or leasing goods carriages with up to 10 vehicles at any time during the year.
• Presumptive Income – 
  • Section 44AD: 8% of the turnover or gross receipts is considered as income (6% in case of digital transactions).
  • Section 44ADA: 50% of the gross receipts is considered as income.
  • Section 44AE: ₹7,500 per month (or part of the month) per goods carriage for heavy goods vehicles, and for other than heavy goods vehicles, the presumptive income is also ₹7,500 per month (or part of the month) per vehicle.
• Maintenance of Books of Account – 
  • Taxpayers opting for the presumptive taxation scheme are not required to maintain detailed books of account.
  • They are also exempt from getting their accounts audited.
• Advance Tax- 
  • Taxpayers under the presumptive scheme are required to pay the entire amount of advance tax by March 15 of the financial year. There is no need to pay advance tax in installments.
• Restriction on Deduction- 
  • Under this scheme, no further expenses are allowed as deduction from the presumptive income. The presumed percentage of income is deemed to cover all expenses.
• Applicability for Multiple Years – 
  • Once a taxpayer opts for the presumptive taxation scheme, they must continue to use it for the next five years. If they fail to do so, they cannot opt for the scheme again for the next five years.
• Form ITR-4- 
  • Taxpayers under this scheme should file their returns using Form ITR-4. This form includes details of gross receipts, turnover, presumptive income, and other relevant information.

 

How do I file my ITR-4 Form?

1. Overview

The pre-filling and filing of ITR-4 service is available to registered users on the e-Filing portal and through accessing the offline utility. This service enables individual taxpayers, HUFs, and firms (other than LLPs) to file ITR-4 online through the e-Filing portal.

This user manual covers the process for filing ITR-4 through the online mode.

2. Prerequisites for availing this service

General

Registered user on the e-Filing portal with valid user ID and password Status of PAN is active Residential Status of person is Resident

Others

Please note: If your PAN is not linked with your Aadhaar, your PAN is made inoperative. In that case you will get a ticker message “Your PAN is made inoperative as it is not linked with Aadhaar. Some of the accesses may be limited. You can link and make your PAN operative after payment u/s 234H.” Link PAN and Aadhaar (recommended). Pre-validate at least one bank account for issue of refund and add at least one bank account under My Bank account on portal under Validation in progress status for filing the return successfully Valid mobile number linked with Aadhaar / e-Filing portal / your bank / NSDL / CDSL (for e-Verification) Download the offline utility or avail a third-party software (If using offline mode)

3. Form at a Glance

ITR-4 has six sections that you need to fill before submitting the form in online mode and a preview page where you can validate all your details filled. The sections are as follows:

1. Personal Information
2. Gross Total Income
3. Disclosures and Exempt Income
4. Total Deductions
5. Taxes Paid
6. Total Tax Liability

Here is a quick tour of the various sections of ITR-4:

3.1 Personal Information

In the Personal Information section of the ITR, you need to verify the data which is auto-filled from your e-Filing profile. You will not be able to edit some of your personal data directly in the form. However, you can make the necessary changes by going to your e-Filing profile. You can edit your contact details, filing type details, authorized representative, partner details (if applicable), and bank details in your e-Filing profile.

For AY 2024-25 New Tax Regime is the default Tax Regime. Option “No” will be Auto Selected.

 

Note: The Finance Act, 2023 has amended the provisions of Section 115BAC to make it the default tax regime for the assessee being an Individual, and HUF . If an assessee does not want to pay tax according to the New tax regime, he will have to explicitly opt out of it and choose to be taxed under the old tax regime.

An assessee having income from a business or profession can opt out of the new tax regime and switch to the old tax regime for a relevant year. However, he has to exercise this option in Form No. 10-IEA on or before the due date for filing the return of income under Section 139(1).

If you want to opt out of New Tax Regime Select “Yes, within due date or Yes, but beyond due date”.

If yes is selected, then Enter the Date of filing and acknowledgement No. of Form 10-IEA and enter the due date applicable for filing of return.

3.2 Gross Total Income

In the Gross Total Income section, you need to review the pre-filled information and verify your income source details from salary / pension, house property, business or profession and other sources (such as interest income, family pension, etc.). You will also be required to enter the remaining / additional details if any.

Note: Some parts of this section will be greyed off depending on whether you’re an HUF or a firm (other than LLP). 

3.3 Disclosures and Exempt Income

In the Disclosures and Exempt Income section, you need to provide details of financial particulars related to business, information regarding gross receipts reported for GST (Optional) and exempt income.

.3.4 Total Deductions

In the Total Deductions section, you need to add and verify any deductions you need to claim under Chapter VI-A of the Income Tax Act.

 

Please Note:

1.  Default Regime is New Tax Regime. If you have not opted for Old Tax Regime, only Deductions under Section 80CCD (2)- Employers Contribution to Tier-1 NPS Account and Section 80CCH- amount deposited in the Agniveer Corpus Fund will be enabled.

2. If taxpayer is opting old Tax regime and claiming deduction u/s 80DD or 80U then its recommended to file form 10-IA also before filing of return. Form 10IA can be filed later also however it is recommended to file form 10-IA along with return of income to avoid any inconvenience later.

3.5 Taxes Paid

In the Taxes Paid section, you need to verify taxes paid by you in the previous year. Tax details include TDS from Salary / Other than Salary as furnished by the Payer, TCS, Advance Tax, and Self-Assessment Tax.

3.6 Total Tax Liability

In the Total Tax Liability section, you will be able to view your computation of income, computation of tax, and total tax, cess and interest. You need to check your tax liability details as per the sections you filled previously in the computation of tax section.

 

How to Access and Submit ITR 4

You can file and submit your ITR through following methods:

• Online Mode – through e-Filing portal
• Offline Mode – through offline Utility

Follow the steps below to file and submit the ITR through online mode:

Step 1: Log in to the e-Filing portal using your user ID and password.

Step 2: On your Dashboard, click e-File > Income Tax Returns > File Income Tax Return.

Note: If your PAN is inoperative, you will get a warning message that your PAN is inoperative as its not linked with the Aadhaar.

You can click on Link Now button to link PAN with the Aadhaar, otherwise click Continue.

Step 3: Select the Assessment Year as 2024-25 and Mode of Filing as online and click continue.

Note: In case you have already filled the Income Tax Return and it is pending for submission, click Resume Filing. In case you wish to discard the saved return and start preparing the return afresh, click Start New Filing.

Step 4: Select Status as applicable to you and click Continue to proceed further.

Step 5: You have two options to select the type of Income Tax Return:

• If you are not sure which ITR to file, you may opt for wizard-based return filing by clicking on Proceed button.Once the system helps you determine the correct ITR, you can proceed with filing your ITR.

• If you are sure which ITR to file, select the applicable Income Tax Return from the dropdown and click Proceed with ITR-4.

Note:
• In case you are not aware which ITR or schedules are applicable to you or income and deductions details, your answers in response to a set of questions will guide you in determining the same and help in correct / error-free filing of ITR.
• In case you are aware of the ITR or schedules applicable to you or Income and deductions details, you can skip the questionnaire.

Step 6: Read the instructions to fill the form carefully and note the list of documents needed and click Let’s Get Started.

Step 7: Review your pre-filled data and edit it if necessary. Enter the remaining / additional data (if required) and click Confirm at the end of each section.

Please Note:

The Finance Act, 2023 has amended the provisions of Section 115BAC to make it the default tax regime for the assessee being an Individual, and HUF . If an assessee does not want to pay tax according to the New tax regime, he will have to explicitly opt out of it and choose to be taxed under the old tax regime.

An assessee having income from a business or profession can opt out of the new tax regime and switch to the old tax regime for a relevant year. However, he has to exercise this option in Form No. 10-IEA on or before the due date for filing the return of income under Section 139(1).

For AY 2024-25 New Tax Regime is the default Tax Regime.

 In the filing section of Personal information, Option “No” will be Auto Selected.

If you want to opt out of New Tax Regime Select “Yes, within due date or Yes, but beyond due date”.

If yes is selected, then Enter the Date of filing and acknowledgement No. of Form 10-IEA and enter the due date applicable for filing of return.

Step 8: Enter your income and deduction details in the different section. After completing and confirming all the sections of the form, click Proceed.

Step 9: In case there is a tax liability

You will be shown a summary of your tax computation based on the details you provided. If there is tax liability payable based on the computation, you will get the Pay Now and Pay Later options at the bottom of the page. It is recommended to use pay Now option.

• If you opt to Pay Later, you can make the payment after filing your Income Tax Return, but there is a risk of being considered as an assessee in default, and liability to pay interest on tax payable may arise.

Step 10: In case there is no tax liability (No Demand / No Refund) or if you are eligible for a Refund

After paying tax, click Preview Return. If there is no tax liability payable, or if there is a refund based on tax computation, you will be taken to the Preview Return page.

Step 11: After successful payment through e-Filing portal a success message is displayed. Click Back to Return Filing to complete filing of ITR.

Step 12: Click Preview Return.

 

Step 13: On the Preview and Submit Your Return page, Place , name and other details will be auto populated then select the declaration checkbox and click Proceed to Preview.
 

Note: If you have not involved a tax return preparer or TRP in preparing your return, you can leave the textboxes related to TRP blank.

Step 14: Preview your return and click Proceed to Validation.

 

Step 15: Once validated, click Proceed to Verification.
 

Note: You will be shown a list of validation errors in your return, if any. You need to go back to the form to correct the errors. If there are no errors, you can proceed to e-Verify your return by clicking Proceed to Verification.

Step 16: On the Complete your Verification page, select your preferred option and click Continue.

 

It is mandatory to verify your return, and e-Verification (recommended option – e-Verify Now) is the easiest way to verify your ITR – it is quick, paperless, and safer than sending a signed physical ITR-V to CPC by speed post.

Note: If your PAN is inoperative: You will see a warning message in pop-up that PAN of the taxpayer is inoperative as it is not linked with Aadhaar.

You can link PAN with Aadhaar by clicking on Link Now option, otherwise you click on Continue.

 

Note: In case you select e-Verify Later, you can submit your return, however, you will be required to verify your return within 30 days of filing of your ITR.

Step 17: On the e-Verify page, select the option through which you want to e-Verify the return and click Continue.

Note:

• If you select Verify via ITR-V, you need to send a signed physical copy of your ITR-V to Centralized Processing Center, Income Tax Department, Bengaluru 560500 by speed post within 30 days.
• Please make sure you have pre-validated your bank account so that any refunds due maybe credited to your bank account.

 

Please Note: 

1. Where the return of income is uploaded and e-verification/lTRV is submitted within 30 days of uploading – In such cases the date of uploading the return of income shall be considered as the date of furnishing the return of income.
2. Where the return of is uploaded but e-verification or ITR-V is submitted after 30 days of uploading – In such cases the date of e-verification/ITR-V submission shall be treated as the date of furnishing the return of income and all consequences of late filing of return under the Act shall follow, as applicable.
3. The duly verified ITR-V in prescribed format and in the prescribed manner shall be sent either through ordinary or speed post or in any other mode to the following address only-

Centralised Processing Centre, Income Tax Department, Bengaluru – 560500, Karnataka.

4. The date on which the duly verified ITR-V is received at CPC shall be considered for the purpose of determination of the 30 days period from the date of uploading of return of income.
5. It is further clarified that where the return of income is not verified after uploading within the specified time limit such return shall be treated as invalid.

Once you e-Verify your return, a success message is displayed along with the Transaction ID and Acknowledgment Number. You will also receive a confirmation message on your mobile number and email ID registered on the e-Filing portal.

 

 

FAQs on ITR 4

Q1. What is the due date of Filing ITR -4 for AY 2024-25 (FY 2023-24)?

Ans – For AY 2024-25 (FY 2023-24) the due date of filing of ITR-4 is 31st July 2024.

Q2. I have filed ITR-4, New Tax regime in FY 2021-22. In FY 2022-23, I have filed ITR-1, Old Tax regime. What are my option available for FY 2023-24?

Ans – The Finance Act, 2023 has amended the provisions of Section 115BAC to make it the default tax regime from the FY 2023-24 (AY 2024-25) for the assessee being an Individual, and HUF.

If an assessee does not want to pay tax according to the New tax regime, he will have to explicitly opt out of it and choose to be taxed under the old tax regime.

An assessee having income from a business or profession can opt out of the new tax regime and switch to the old tax regime for a relevant year. However, he has to exercise this option in Form No. 10-IEA on or before the due date for filing the return of income under Section 139(1).

Q3. What is Rebate u/s 87 A as per new Tax Regime (Default) and Old tax regime?

Ans – Currently, section 87A allows individuals to claim a rebate of Rs 12,500 under the old tax regime and Rs 25,000 under the new tax regime.

Till March 31, 2023 (FY 2022-23), section 87A tax rebate under old and new tax regime was available for taxable income up to Rs 5 lakh. Hence, opting for old or new tax regime made no difference for an individual having taxable income up to Rs 5 lakh.

However, to make the new tax regime more attractive, the tax rebate was increased to Rs 25,000 for New Tax regime only. This made zero tax payable for taxable income up to Rs 7 lakh in the new tax regime for FY 2023-24 (from April 1, 2023).