ITR-4 FY 2024-25: Eligibility, Benefits & Filing Steps

ITR-4, also known as Sugam, is the Income Tax Return form meant for resident individuals, HUFs (Hindu Undivided Families), and Firms (other than LLPs) who are opting for the Presumptive Taxation Scheme under Section 44AD, 44ADA or 44AE of the Income Tax Act.

Who Can File ITR-4 for FY 2024-25?

ITR-4 form filing can be filed by taxpayers who meet the following conditions:

Eligible Persons:

• Resident Individuals, HUFs, or Firms (excluding LLPs)
• Total income is up to ₹50 lakh
• Income from:
  • Business (under Section 44AD or 44AE)
  • Profession (under Section 44ADA)
  • Salary/pension
  • One house property
  • Other sources (interest, dividend, )

Using the Presumptive Income Scheme:

• Section 44AD: Small businesses (not professionals) with turnover up to ₹2 crore
• Section 44ADA: Professionals (legal, medical, engineering, architecture, ) with gross receipts up to ₹50 lakh
• Section 44AE: Transport businesses owning up to 10 goods vehicles

Who Cannot File ITR-4?

❌ Not eligible if:

• Income exceeds ₹50 lakh
• Has income from more than one house property
• Holds foreign assets or earns foreign income
• Director in a company or holds unlisted equity shares
• Wants to claim capital gains
• Maintains books of accounts and does not opt for presumptive taxation
• Has agricultural income exceeding ₹5,000
• Is a non-resident

Key Features of ITR-4 for AY 2025-26

• Simplified form for presumptive taxation filers
• Less compliance burden – no need to maintain regular books of accounts
• Income is presumed at fixed rate (8% or 6% for digital transactions under Sec 44AD, 50% under 44ADA)
• No need to audit if presumptive scheme is followed properly

Important Changes for FY 2024-25 (AY 2025-26)

Exempt capital Gain upto Rs. 1.25 lacs can be declared in ITR. 

Documents Required to File ITR-4

Although documents are not submitted with the return, keep the following for record:

• PAN Card, Aadhaar, and Bank account details
• Form 26AS / AIS / TIS
• Profit & Loss details if declaring presumptive income
• Details of salary/income from other sources
• Interest certificates
• Investment and deduction proofs (if applicable)

How to File ITR-4

1. Prepare your income details – under presumptive basis
2. Log in to the Income Tax e-filing portal
3. Choose “File Income Tax Return“
4. Select:
   • Assessment Year: 2025-26
   • Online/Offline Mode
   • Form Type: ITR-4
5. Fill in all the sections:
   • Personal information
   • Gross total income
   • Deductions (80C to 80U)
   • Tax paid and verification

6. Submit and e-verify using Aadhaar OTP, Net Banking, or DSC

Due Date for Filing ITR-4 for FY 2024-25

• Normal due date: 31st July 2025 but extended to 15^th September 2025
• With audit (if opted out of presumptive scheme): 31st October 2025
• Revised/Belated return: 31st December 2025

Benefits of Filing ITR-4

• Simpler compliance
• No need to maintain books (if under presumptive)
• Claim deductions under Chapter VI-A
• Helps in getting loans, visa applications
• Proof of income for business and professionals

Conclusion

ITR-4 is the easiest and most convenient way for small taxpayers and professionals to declare their income under the presumptive taxation scheme. It reduces compliance and tax audit requirements, making it ideal for small businesses and freelancers. Ensure timely and accurate filing to avoid penalties and scrutiny.

Taxcellent assist you in filing ITR-4 timely at reasonable prices.