Who Can File ITR-4 Sugam? Complete Eligibility Checklist

Income Tax Return Form 4, commonly known as ITR-4 (Sugam), is a simplified income tax return form prescribed by the Income Tax Department of India. It is designed for resident individuals, Hindu Undivided Families (HUFs), and firms (other than LLPs) who opt for the presumptive taxation scheme under the Income Tax Act, 1961.

Who Can File ITR-4?

ITR 4 Filing Delhi can be filed by taxpayers who meet the following conditions:

• The taxpayer is a resident individual, HUF, or firm (excluding LLPs)
• Income is earned from:
  • Business under Section 44AD
  • Profession under Section 44ADA
  • Transport business under Section 44AE
• Total income does not exceed ₹50 lakh in a financial year
• Income may also include:
  • Salary or pension
  • Income from one house property
  • Income from other sources (like interest)

Presumptive Taxation Scheme

The presumptive taxation scheme simplifies tax compliance by allowing taxpayers to declare income at a prescribed rate, instead of maintaining detailed books of accounts:

• Section 44AD: Small businesses declare income at a fixed percentage of turnover
• Section 44ADA: Professionals (like doctors, lawyers, architects) declare 50% of gross receipts as income
• Section 44AE: Transporters declare income based on the number of vehicles owned

This reduces paperwork and makes tax filing easier for small taxpayers.

Who Cannot File ITR-4?

ITR-4 cannot be used by:

• Non-resident individuals
• LLPs
• Those with income exceeding ₹75 lakh
• Individuals with:
  • Capital gains
  • More than one house property
  • Income from foreign sources or foreign assets
  • Agricultural income above ₹5,000

Advantages of ITR-4

• Simple and easy to file
• Less documentation required
• No need to maintain detailed accounts
• Suitable for small businesses and professionals

Conclusion

ITR-4 (Sugam) plays an important role in encouraging tax compliance among small taxpayers by offering a simplified Online Income Tax Return Filing in Delhi process. It is especially beneficial for small businesses and professionals who prefer an easier way to declare income without complex accounting requirements. Understanding eligibility and conditions is essential before choosing this form to ensure correct and lawful tax filing.