The Indian Income Tax Return (ITR) framework includes a variety of forms tailored to different categories of taxpayers. Among them, ITR 4 Form Filing (Sugam) stands out as a simplified, user-friendly option for small business owners, professionals, and freelancers who want to take advantage of presumptive taxation under Sections 44AD, 44ADA, and 44AE of the Income Tax Act.
The Government of India, through this scheme, aims to reduce compliance burdens on small taxpayers, allowing them to estimate their income at a predefined rate of turnover or receipts without maintaining detailed books of accounts.
Filing income tax may feel daunting, but with clear guidance and expert assistance from firms like Taxcellent, you’re never alone. In this comprehensive article, we’ll walk you through every aspect of ITR-4 filing, demystify complex tax provisions, and showcase how Taxcellent can be your partner in compliance.
This return is applicable to Resident Individuals, Hindu Undivided Families (HUFs), and Firms (other than LLPs) who:
You cannot file ITR-4 if:
If you fall into any of the above categories, you’ll need to file ITR-3 or another appropriate form.
Not sure which form applies? Let Taxcellent evaluate your case for free. services@taxcellent.in
The Income Tax Department periodically updates return forms to reflect changes in tax laws. Here are the important changes for the Assessment Year 2025-26:
A new deduction for Agniveer scheme contributors is added under Section 80CCH.
The new tax regime under Section 115BAC is default for individuals. If you wish to continue under the old regime, you must file Form 10-IEA on or before the due date.
Presumptive taxation simplifies your tax filing. Instead of calculating net income by deducting expenses from turnover, a fixed percentage of receipts is deemed as profit and taxed accordingly.
| Section | Applicable To | Limit | Presumptive Rate |
|---|---|---|---|
| 44AD | Small businesses | ₹3 crore (with ≤5% cash receipts) | 8% (6% for digital) |
| 44ADA | Professionals (CA, lawyers, doctors) | ₹75 lakh (with ≤5% cash receipts) | 50% |
| 44AE | Transporters (goods) | Up to 10 vehicles | ₹1,000 – ₹7,500 per vehicle/month |
Wondering if presumptive taxation is right for you?
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While books of accounts aren’t required under presumptive taxation, you still need to organize important documents:
Taxcellent offers automated document collection tools and secure email submissions.
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