Income Tax
ITR-4 Filing (Presumptive Taxation)
File ITR-4 for businesses and professionals opting for presumptive taxation under Sections 44AD, 44ADA or 44AE.
Overview
ITR-4 (Sugam) is for individuals, HUFs and firms (other than LLP) who opt for the presumptive taxation scheme. Under this scheme, income is presumed at a fixed percentage of turnover/receipts without requiring detailed books of account.
Presumptive Taxation Schemes
- Section 44AD: For eligible businesses with turnover up to Rs 2 crores (Rs 3 crores with digital receipts). Income presumed at 8% of turnover (6% for digital receipts)
- Section 44ADA: For eligible professionals with receipts up to Rs 50 lakhs (Rs 75 lakhs with digital receipts). Income presumed at 50% of receipts
- Section 44AE: For transporters owning up to 10 goods carriages
Who Cannot File ITR-4?
- Persons with income above Rs 50 lakhs
- Foreign assets or income holders
- Directors of a company
- LLPs
Why Choose VSB Consultants?
We verify your eligibility for presumptive taxation, compute the presumed income and file ITR-4 accurately.
Requirements, documents, government fees, professional fees and timelines may vary depending on the applicant, jurisdiction, portal status and applicable law. The final scope will be confirmed after reviewing the specific case.
FAQ
Frequently Asked Questions
Presumptive taxation simplifies compliance — no need to maintain detailed books of account, no audit requirement (if income is declared at or above the prescribed rate), and reduced filing complexity.
If you declare income below the prescribed rate, you must maintain books of account and get them audited. You cannot opt for presumptive taxation under 44AD for the next 5 years.
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