Individuals Eligible to file ITR 4 Sugam Form

Our taxation services are the right fit for you. Form ITR 4 Sugam is used for filing Income Tax Return by those taxpayers who have opted for the presumptive income scheme under Sections 44AD, 44ADA and 44AE of the Income Tax Act, 1961. If the business turnover limit of INR 2 crores exceeding which the taxpayer would be required to file ITR-3. Presumptive Taxation scheme is a scheme that exempts the small taxpayers from maintenance of books of accounts.

Why register with Earendil

  • Our Chartered Accountant will be guiding you through the process. He/she will be your single point of contact for registration assistance and for all other services that we offer.
  • Our motto is “You only do what you do best; to us, leave the rest”. We assure that once we start our relationship, you wouldn’t have to think about the areas which we handle.
  • We ensure that we structure your income for filing to ensure that you save tax.
  • Quick and simple process with tax planning for the next year complimentary.

What is Presumptive Taxation?

  • The net income is estimated to be 8% of gross cash receipts. However, for payments received via digital mode, the net income is assumed to be 6% of such gross receipts.
  • There is no requirement of maintenance of books of accounts
  • Deduction of any business expense against this income is not allowed.
  • The individual business owner has to pay 100% Advance Tax by 15th of March.

Individuals Eligible to file ITR 4 Sugam Form

Form ITR 4 Sugam is required to be filed by individuals whose income comes from the following sources:

  • Business Income under Section 44AD/Section 44AE.
  • Getting income from profession as per Section 44ADA.
  • Income up to INR 50 lakhs from Salary/Pension.
  • Getting income upto INR 50 lakhs from One House Property (does not include brought forward loss or loss to be brought forward under this head).
  • Income from other sources up to INR 50 lakhs (does not include winning from lottery or horse races).
  • Form ITR-4 can also be filed by freelancers in case their income does not exceed INR 50 lakhs.

Individuals ineligible to file ITR 4 Sugam Form

Form ITR 4 Sugam cannot be filed by any individual who:

  • Is a Director in a company.
  • Holds any unlisted equity shares at any time during the financial year.
  • Owns assets/financial interest in an entity outside India.
  • Is a signing authority in an account outside India.
  • Received income from a source located outside India.
  • Earns profits from a business or profession which is not required to be computed under sections 44AD, 44ADA or 44AE, like income from speculative business, commission, brokerage, etc.
  • Capital Gains booked in the financial year.
  • Getting income from more than one house property.
  • Income under the head “other sources” from winning lottery, horse races, income taxable at special rates u/s 115BBDA or 115BBE.
  • Getting income which is to be apportioned in accordance with the provisions of Section 5A of the Income Tax Act, 1961.
  • Agricultural income exceeding INR 5,000 in the financial year.
  • Who has any brought forward loss or loss which is to be carried forward under any income head.
  • Has loss under “Income from other sources”.
  • Who has a claim of relief under Sections 90, 90A or 91 of the Income Tax Act, 1961.
  • Has any deduction claim under Section 57 of the Income Tax Act, 1961 (except deduction relating to family pension).
  • Who has claim of tax credit which has been deducted at source in the hands of another person.
  • Has joint ownership in house property (inserted in AY 20-21).