Filing of ITR-4 Form (Sugam) in for AY 2025-26

Introduction

The ITR-4 form is intended for small business owners who don't maintain detailed books of accounts but keep an approximate record of their sales. This category includes online sellers, traders, wholesalers, manufacturers, and similar businesses. Freelancers, such as content writers, bloggers, vloggers, and others, are also required to file the ITR-4 form.

Additionally, professionals like chartered accountants, doctors, lawyers, and engineers, whose income is assessed on a presumptive basis under sections 44AD, 44ADA, or 44AE, must submit this form. Individuals who receive a salary but also earn extra income through freelancing or a part-time business can also file the ITR-4 form. In this article, you’ll get complete detail regarding ITR 4 Form Filing in .

What is ITR-4?

ITR-4 is an income tax return form in India used by individuals, Hindu Undivided Families (HUFs), and businesses to report income under the presumptive taxation scheme (Section 44AD, 44AE, or 44ADA). It is typically filed by taxpayers who have income from business, profession, or other sources like salary and property, and who meet the criteria set by the Income Tax Department.

Who Should File ITR-4?

The ITR-4 form is applicable to individuals, Hindu Undivided Families (HUF), and small businesses that meet the following criteria:

1. Presumptive Income Under Sections 44AD, 44ADA, and 44AE:
   • Section 44AD: This is for small businesses whose annual turnover is up to ₹2 crore. In this case, 8% of the gross receipts are presumed to be income, and no detailed books of accounts are required.
   • Section 44ADA: For professionals like doctors, lawyers, and architects, whose annual receipts do not exceed ₹50 lakh. Here, 50% of gross receipts or turnover is considered as income.
   • Section 44AE: This is for taxpayers engaged in the business of plying, hiring, or leasing goods carriages, where they are allowed to declare presumptive income based on the number of vehicles.
2. Income from Salaries: If you have income from salaries or pensions along with any of the above presumptive incomes, you can use ITR-4.
3. Income from One House Property: If you have income from one house property, such as rent, along with the above sources, ITR-4 is applicable.
4. Income from Other Sources: If you have income from other sources such as interest on savings accounts or fixed deposits, ITR-4 can be used, as long as the total taxable income does not exceed ₹50 lakh.
5. Not Applicable for Larger Businesses: If your business turnover exceeds ₹2 crore, or if your professional receipts exceed ₹50 lakh, you cannot use ITR-4. In these cases, a different form (like ITR-3 or ITR-5) must be filed.

Key Updates in the ITR-4 Form in for AY 2024-25

Several updates have been made to the ITR-4 form in for AY 2024-25:

• Default Tax Regime Update: The default tax regime has shifted to the new tax regime, as per amendments in the Finance Act 2023 to Section 115 BAC. For individuals, HUFs, AOPs, BOIs, and AJPs, the new tax regime will apply by default. Those who wish to opt for the old tax regime must actively choose to do so. Individuals filing ITR-4 must submit Form 10-IEA to opt-out of the new tax regime.
• Section 80 CCH Deduction: A new column has been added in ITR-4 to disclose the deduction under Section 80 CCH. This section, introduced by the Finance Act 2023, allows individuals enrolled in the Agnipath Scheme and contributing to the Agniveer Corpus Fund from 01-11-2022 onwards to claim a tax deduction on the total amount deposited in the fund.
• Presumptive Taxation Scheme Changes: The Finance Act 2023 increased the turnover limit for opting for the presumptive taxation scheme under Section 44AD from Rs. 2 crores to Rs. 3 crores, provided cash receipts do not exceed 5% of the total turnover. Additionally, the turnover threshold for Section 44ADA was raised from Rs. 50 lakhs to Rs. 75 lakhs, with the same cash receipt condition. To reflect these changes, a new column has been added in ITR-4 under Schedule BP for disclosing "receipts in cash," including cheques or bank drafts that are not account payee.

What is the Format of the ITR-4 Form in ?

The ITR-4 form is structured into the following sections:

• PART A: General Information
• PART B: Gross Total Income from the Five Heads of Income
• PART C: Deductions and Total Taxable Income
• PART D: Tax Computation and Tax Status
• Schedule BP: Details of Income from Business under Sections 44AD, 44ADA, and 44AE
• Information Regarding Turnover/Gross Receipts Reported for GST: Provide your GSTIN
• Financial Particulars of Business: List assets and liabilities owned by you
• Schedule IT, TCS, and TDS 1: Statement of advance tax payments, self-assessment tax, tax collected at source, and TDS from salary
• Schedule TDS 2: Statement of tax deducted at source on income other than salary
• Verification Section: Declare that the information provided is accurate to the best of your knowledge and add your signature.

How to File ITR-4 for AY 2024-25?

Filing the ITR-4 form for AY 2024-25 is a simple process that can be done online through the Income Tax Department’s e-filing portal. Follow these steps to file your ITR-4 form:

• Step 1: Register on the Income Tax E-filing Portal
  If you haven’t already, create a login on the Income Tax Department’s e-filing website (https://www.incometax.gov.in/iec/foportal). You will need your PAN, Aadhar, and other personal details for registration.
• Step 2: Select ITR-4 Form
  Once you log in, go to the "e-File" section and select "Income Tax Return." Choose ITR-4 from the list of available forms for the relevant assessment year (AY 2024-25). Ensure you select the correct form based on your income and tax profile.
• Step 3: Fill in the Details
  Fill in all the required personal information, including:
  • Name, PAN, address, and contact details.
  • Income details from various sources (presumptive income, salary, etc.).
  • Deductions under Section 80C, 80D, etc., if applicable.
  • Tax calculation based on your presumptive income and any advance tax or TDS paid.
• Step 4: Verify the Information
  After completing the form, double-check all the entered information for accuracy. Any incorrect or missing details can lead to penalties or delays.
• Step 5: Submit the Form
  Once you have reviewed your form and are sure all details are correct, submit the form online.
• Step 6: E-Verify the Return
  After submitting the form, you need to e-verify the return. You can use methods like:
  • Aadhaar OTP (if linked to PAN).
  • Net Banking or Bank Account.
  • Digital Signature Certificate (DSC).
  Alternatively, you can also send a physical signed copy of the ITR-V acknowledgment to the Centralized Processing Centre (CPC) in Bengaluru.

Why Bizfoc?

Bizfoc is one of the leading brands along with a professional and experienced team in the field of ITR filing in . We provide a seamless process for ITR filing to our clients. We make sure to file everything accurately and in a minimal time period. We guide you at each and every step related to your filings and new ITR updates.

Conclusion

The ITR-4 (Sugam) is a simple and convenient way for small taxpayers to file their income tax returns for AY 2025-26. It is designed for individuals and businesses with presumptive income, making it easier to comply with tax regulations. Filing ITR-4 on time ensures you avoid penalties and delays, and that you are compliant with Indian tax laws. Make sure you gather all necessary documents, accurately report your income, and follow the filing process through the official e-filing portal to avoid any hassles.

Frequently Asked Questions