ITR-4 (Sugam): Simplified Income Tax Return Form
ITR-4, also known as Sugam, is an income tax return form designed for certain categories of taxpayers in India. Heres a comprehensive overview of ITR-4 based on the information from various sources:
Eligibility and Applicability
- ITR-4 is applicable to resident individuals, Hindu Undivided Families (HUFs), and non-LLP firms with a total income of up to Rs. 50 lakh.
- It is specifically designed for taxpayers who opt for a presumptive income scheme under Section 44AD, Section 44ADA, and Section 44AE of the Income Tax Act.
- Taxpayers who do not maintain detailed books of accounts but maintain a sales ledger in approximate volume, such as small business owners, online sellers, traders, wholesalers, manufacturers, freelancers, professionals like chartered accountants, doctors, lawyers, engineers, and individuals earning additional income from freelancing activities or part-time business, are required to file ITR-4.
Ineligibility
- Individuals exceeding a total income of Rs. 50 lakh, having agricultural income in excess of Rs. 5,000, being a Director in a Company, having income from more than one House Property, or having certain types of income like winnings from lottery, are not eligible to file ITR-4.
Key Features
- Taxpayers using ITR-4 are not required to maintain detailed books of accounts or other documents mentioned in section 44AA.
- If the taxpayer undergoes an audit and obtains an audit report in accordance with section 44AB, they are exempt from filling up Form ITR-4 (Sugam) .
Filing and Due Date
- The due date for filing ITR-4 is typically July 31 under non-audit cases and October 31 under audit applicable cases.
- Taxpayers need to link Aadhaar with PAN to file ITR, although it is still possible to file ITR without linking Aadhaar and PAN.
Conclusion
ITR-4 (Sugam) is a simplified income tax return form tailored for specific categories of taxpayers with a presumptive income scheme. It offers a streamlined approach for filing taxes, especially for those who do not maintain detailed books of accounts. Understanding the eligibility criteria and key features of ITR-4 is essential for taxpayers to ensure compliance with the Indian income tax regulations.
