ITR-4 Form: Presumptive Income

ITR-4, also known as "Sugam," is a simplified income tax return form for resident individuals, Hindu Undivided Families (HUFs), and partnerships (excluding LLPs) who have opted for the presumptive income scheme. This scheme aims to reduce the compliance burden for small taxpayers.

Who Can Use ITR-4? 

 Taxpayers can use ITR-4 if they meet the following criteria: 

 They are resident individuals, HUFs, or partnerships (excluding LLPs). 

 They have income from business or profession where income is calculated under the presumptive taxation scheme of sections 44AD, 44ADA, or 44AE.

They have income from salary/pension, one house property, and/or interest income.

Their total income does not exceed ₹50 lakh.

Presumptive Taxation Scheme

Under the presumptive taxation scheme, taxpayers can declare a certain percentage of their gross receipts as their income, instead of calculating actual income.

Section 44AD: For businesses with a turnover of up to ₹2 crore. Income is presumed to be 8% of the turnover (or 6% for digital receipts).

Section 44ADA: For professionals (e.g., lawyers, doctors, engineers) with gross receipts up to ₹50 lakh. Income is presumed to be 50% of the gross receipts.

Section 44AE: For taxpayers involved in the business of playing, hiring or leasing goods carriages. Income is presumed to be a fixed amount per vehicle.

 Key Points about ITR-4

 Taxpayers opting for this scheme are not required to maintain detailed books of accounts.

ITR-4 is simpler than regular ITR forms, with fewer details to be filled.

It is designed to benefit small businesses and professionals by reducing their compliance burden.

HERE IS EVERYTHING YOU NEED TO UNDERSTAND ABOUT ITR-4 PLEASE CHECK THE LINK BELOW

 https://youtu.be/c7ToW0KoZPY?si=bCJwlNAkmKnpyAA1