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What is ITR-4?

ITR-4 (Sugam) is the Income Tax Return form for individuals, Hindu Undivided Families (HUFs), and Firms (other than LLP) who have opted for the presumptive income scheme under Sections 44AD, 44ADA, or 44AE of the Income Tax Act. This scheme allows small businesses and professionals to report income on a presumptive basis, meaning they declare a fixed percentage of their turnover or gross receipts as income, simplifying the tax filing process.

Who is Eligible to File ITR-4?

The ITR-4 form is applicable to:

• Individuals: Proprietors of small businesses and professionals such as doctors, lawyers, and freelancers who opt for the presumptive income scheme.
• Hindu Undivided Families (HUFs): Families running small businesses or professions under the presumptive scheme.
• Firms: Small firms (other than LLPs) engaged in business or profession under the presumptive income scheme.

Who is Not Eligible to File ITR-4?

The ITR-4 form cannot be used by:

• Individuals with income exceeding ₹2 crore from business or ₹50 lakh from a profession (they need to file ITR-3 or ITR-5).
• Companies, LLPs, or partnership firms with non-presumptive income.
• Individuals with income from capital gains, house property more than one, or foreign income.

Documents Required for ITR-4 Filing

Here are the documents you’ll need to file ITR-4:

• Form 16: For salaried individuals (if applicable).
• Form 26AS: Consolidated tax statement reflecting all taxes paid on your behalf.
• Bank account details: Bank statements or passbooks to reflect your business or professional income.
• Gross receipts/turnover details: For businesses or professions, details of your gross receipts or turnover for the financial year.
• Investment proofs: For claiming deductions under sections like 80C, 80D, etc.

Benefits of Filing ITR-4

Filing ITR-4 offers the following advantages:

• Easy and simplified filing: The presumptive income scheme simplifies tax filing for small businesses and professionals by allowing them to declare income at a fixed rate.
• No need to maintain detailed accounts: Under the presumptive scheme, taxpayers do not need to maintain comprehensive books of accounts.
• Claim deductions: You can claim various deductions under sections such as 80C (investment), 80D (medical insurance), etc.
• Carry forward of losses: Business losses can be carried forward to future years for tax adjustment.
• Tax refunds: Any excess tax paid can be claimed as a refund.

Presumptive Income Under ITR-4

The presumptive income scheme allows taxpayers to declare income based on a percentage of their turnover or gross receipts. The rates are as follows:

• Section 44AD (Business Income): 8% of turnover or gross receipts is deemed as income (6% if receipts are through digital means).
• Section 44ADA (Professionals): 50% of gross receipts is deemed as income for specified professionals like doctors, lawyers, architects, etc.
• Section 44AE (Transporters): Income for individuals engaged in the business of plying, hiring, or leasing goods carriages is computed as ₹7,500 per month per vehicle.

Penalties for Late Filing of ITR-4

If you file your ITR-4 late, the following penalties may apply:

• Late filing fee: A penalty of ₹5,000 if the return is filed after the due date but before December 31st. For individuals with income up to ₹5 lakh, the penalty is ₹1,000.
• Interest under Section 234A: Interest at 1% per month on any unpaid tax liability for late filing.
• Loss of carry forward benefits: Failure to file ITR-4 on time may result in the inability to carry forward losses to future years.

How WeIncept Helps with ITR-4 Filing

WeIncept simplifies the ITR-4 filing process for small businesses and professionals by offering:

• Turnover and receipts calculation: We assist you in calculating your turnover and gross receipts for accurate tax filing.
• Tax computation: Our experts calculate your presumptive income and ensure that all deductions and tax liabilities are properly accounted for.
• Filing on time: We ensure your ITR-4 is filed well before the due date to avoid penalties.
• Refund claim assistance: If you are eligible for a tax refund, we help you claim it smoothly and on time.

Why Choose WeIncept for ITR-4 Filing?

WeIncept offers expert guidance and reliable services for ITR-4 filing:

• Simplified tax filing: Our team makes the entire process of filing ITR-4 easy and stress-free for you.
• Maximize deductions: We help you claim all eligible deductions to reduce your tax burden.
• Compliance assurance: We ensure that your return is filed in full compliance with the Income Tax laws.
• Affordable pricing: We provide cost-effective solutions for your tax filing needs, ensuring the best value for your money.

File Your ITR-4 with WeIncept Today

If you are a small business owner or professional under the presumptive income scheme, let WeIncept handle your ITR-4 filing. Our expert team ensures that your tax return is accurate, compliant, and filed on time. Contact us today for seamless and reliable ITR-4 filing services.