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What is ITR 4?
Income Tax Return Form 4, which also called SUGAM, is filed by the taxpayers who have opted for presumptive taxation scheme under section 44AD, section 44DA and section 44AE of the Income Tax Act, 1961. ITR 4 can be filed by individuals, HUF as well as a partnership firm. However, if the annual turnover of business registered under presumptive taxation scheme exceeds Rs. 2 crores, the taxpayer is required to file ITR-3.
Who is required to file ITR-4?
Under existing rules of the Income Tax Act, 1961, Individuals/HUF/Partnership Firms having any of the following types of income are required to file ITR Form 4:
- Business Income computed under section 44AD or section 44AE
- Income from profession earned under section 44ADA
- Salary/Pension
- Income from one house property (excluding the cases where loss is to be carried forward or brought forward loss)
- Income from other sources (excluding winning from lottery or income from other forms of legal gambling such as horse betting)
How to Download ITR-4
You can easily download the ITR-4 Sugam Form for free from the official website of the Income Tax Department Government of India. The following is the ITR Form 4 download link from the official website:
For Whom is filing ITR-4 not mandatory?
Individuals belonging to the following categories are not required to file ITR-4 despite having business income:
- The assessee who keeps all books of accounts under section 44AA with respect to their business or profession.
- In case the assessee gets his/her account audited and obtains the audited report as required under section 44AB in respect of business or profession.
What is the structure of ITR 4?
ITR 4 consist of the following parts:
- Part A: General Information of tax assessee
- Part B: Gross Total Income ( Income and deduction under various heads)
- Part C: Deductions and Taxable Total Income
- Part D: Tax Computation & Tax Status
- Verification and Signatures on Return
- Schedule BP: Details of Income From Business
- Schedule AL: Assets and Liability at the end of the year (only applicable when the total income exceeds Rs. 50 lakhs)
- Schedule IT: Statement of payment of advance tax
- Schedule TCS: Statement of Tax Collected at Source
- Schedule TDS1: Statement of Tax Deducted at Source on Salary
- Schedule TDS2: Statement of Tax Deducted at Source on income other than Salary
It should be noted that after the implementation of GST, ITR Form 4 has been modified accordingly from AY 2018-19 in order to include GST details.
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How to File ITR Form 4 (SUGAM) Online?
Taxpayers eligible to file ITR 4 can do so electronically through the e-filing portal of the Income Tax Department. You can file ITR either using digital signature else you can verify it using Electronic Verification Code (EVC), Aadhaar OTP or through net-banking.
Since ITR-4 (SUGAM) is an annexure-less form, the assessee is not required to upload any attachments when filing the ITR4.
How to File ITR 4 Offline?
ITR4 can be filed offline only if taxpayers fall into any of the following categories:
- Individuals who are 80 years of age or more.
- Individuals having net taxable income of not more than Rs. 5 lakh and who do not need to claim a tax refund in the return.
Returns under ITR 4 (SUGAM) can be filed by eligible individuals for offline mode by furnishing the return in physical form to the Income Tax Department. The department will issue an acknowledgement receipt after successful submission.
Also Read: Income Tax Return: How to File, ITR Forms and Due Date
What are the major changes introduced in ITR Form 4 from AY 2018-19?
| Changes in ITR-4 (FY 2018-19) | Details |
| Introduction of GST Payments and Refunds Column | This new sections (E9 and E10) contain details of GST paid and refunded. |
| Removal of Gender | The assessee is not required to disclose gender. |
| Penalty Disclosure for Late Filing of ITR | In this field, later filers of ITR4 need to provide details of late filing fees paid. |
| Disclosure of Salary and House Property Income | A new section (B3) requires a detailed calculation of income from salary and house property. |
| Details of Foreign Bank Account for Tax Refund purposes | NRI taxpayer can now mention details of the foreign bank account in which he/she wants tax refund to be credited. |
| Claiming Relief under DTAA (Double Taxation Avoidance Agreement) | Taxpayer claiming relief under DTAA is required to submit some additional details such as rate according to the treaty, rate under the I-T act etc. |
What is Presumptive Taxation Scheme under Section 44AD?
ITR Form 4 is submitted by taxpayers who file their income tax return under section 44AD of the Income Tax Act, 1961 to avail the benefits of presumptive taxation scheme. The presumptive taxation scheme under section 44AD facilitates small businesses by saving them from the tedious task of maintaining books and accounts. Businesses registered under section 44AD are not required to maintain their accounts on a regular basis. They can pay tax as per the prescribed rate while filing their income tax return using ITR 4.
Also Read: Section 44AD: All you need to know about the Presumptive Taxation Scheme