Filing of ITR-4 Form (Sugam) for AY 2024-25

Filing of ITR-4 Form in Delhi

The ITR-4 form, or SUGAM, is used for filing income tax returns for individuals, businesses, and Hindu Undivided Families (HUFs) opting for a presumptive taxation scheme. You can also file ITR-4 if your income includes business or professional income under Sections 44AD, 44ADA, or 44AE.

Freelancers (self-employed individuals who find their own clients and are paid based on their work), such as content writers, bloggers, vloggers, and others, are also required to file ITR-4. In this article, we will guide you through the process of filing ITR-4 both online and offline, along with the necessary documents, deadlines, and the latest updates for FY 2024-25 and AY 2025-26.

What is ITR 4?

SUGAM or ITR-4 form is used to file Income tax returns in India. This form can be used by entities that opt for a presumptive income scheme under Section 44AD, Section 44ADA, and Section 44AE of the Income-tax Act. Also, this form applies to freelancers (bloggers, vloggers, content writers, video creators, etc.) who receive income under Sections 44AD, 44ADA, or 44AE, provided their total income does not exceed ₹50 Lakh.

Who Should File ITR-4 in Delhi?

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

• Total Income not exceeding ₹50 Lakh during the Financial Year
• Income from Business and Profession, which is calculated on a presumptive basis under sections 44AD, 44ADA, or 44AE
• Income from Salary/Pension, one House Property, Agricultural Income (up to ₹ 5000/-)
• Other sources, excluding winnings from lottery and income from race horses, which include:
  • Interest from Savings Account
  • Interest from Deposit (Bank / Post Office / Cooperative Society)
  • Interest from Income Tax Refund
  • Family Pension
  • Interest received on compensation that has been enhanced through a legal process
  • Any other Interest Income (e.g., Interest Income from Unsecured Loan)

Who is not eligible for ITR-4 for AY 2024-2025 in Delhi?

ITR-4 cannot be filed by an Individual, HUF, or Firm (other than an LLP) who:

• is a Resident but Not Ordinarily Resident (RNOR), or Non-Resident Indian
• has a total income exceeding ₹ 50 Lakh
• has agricultural income above ₹5,000/-
• is a Director in a Company (directors are subject to different tax filing requirements)
• has income from more than one House Property;
• Has income of the following nature:
  • winnings from the lottery;
  • the activity of owning and maintaining racehorses;
  • 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 Updates in the ITR-4 Form for AY 2024-25

From AY 2024-25, new schedules have been added regarding deduction u/s 80 DD and 80U. If you want to claim deduction u/s 80DD and 80U, then you have to mandatorily file Form 10 IA before filing the return of income and enter the details (date of filing form and acknowledgment no.) of Form 10 IA in Schedule 80DD and 80U while filing the return of income.

What is the format of the ITR-4 Form?

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.

What are the documents required for filing ITR-4 in Delhi?

You will need to keep the below documents ready (as applicable) to file ITR-4:

The linking of Aadhaar and PAN is important. However, you would still be able to file your ITR if your PAN is not linked with Aadhaar, but you will have limited access to the portal. It is therefore advisable to link PAN with Aadhaar.

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

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: Visit the Income Tax Portal: For filing ITR-4, it is important to visit the income tax portal https://www.incometaxindiaefiling.gov.in/home.
• Step 2: Select Income Tax Preparation Utilities: On visiting the above link, you need to click on the Download Tab and select “Offline Utilities". The next step is to select the Income Tax Preparation Utilities.
• Step 3: Select Excel Utility under the ITR-4 Column: After clicking on the Income Tax Preparation Utilities, you need to select the relevant Assessment Year (year in which any previous year's revenue is assessed to file the ITR). Then click on Excel Utility under the ITR-4 Column to fill in the details hand by hand.
• Step 4: Download the File: After following all the previous steps, you just need to download the file that reflects the ITR-4 of the concerned Assessment Year.

Why Bizfoc?

Bizfoc is one of the leading accounting firms and has a professional and experienced team in the field of ITR filing. 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 every step related to your filings and new ITR updates.

Conclusion

The ITR-4 (SUGAM) is a form that is used to file income tax by all types of small businesses, professions, individuals, and HUFs. Those entities that have income fall under sections 44AD, 44ADA, or 44AE. For filing the ITR-4, you need to get the required documents without any mistakes or discrepancies. Also, the applicant needs to go through the eligibility first to see whether they belong to ITR-4 or not. The ITR-4 (SUGAM) is a form that is used to file income tax for all types of small businesses.

Frequently Asked Questions? (FAQs)