ITR-4, also called “Sugam,” is one of the many ITR forms available. It is great for small filers with incomes as much as Rs. 2 crores as it makes submitting less complicated. To begin with, making sure you use the appropriate ITR form while submitting your taxes is critical for following the law and avoiding fines and interest. In this blog, we are going to offer an entire image of ITR-4.
What is ITR-4, and Who Needs to File it?
For persons and Hindu Undivided Families earning income from a company or employment, ITR-4, often known as “Sugam,” is a tax form. Small people with a revenue of less than Rs. 2 crores would find filing easy using the income tax return form ITR-4. This form is helpful for people who picked the presumed income plan under sections 44AD, 44ADA, or 44AE of the Income Tax Act for the Assessment Year (AY) 2024–25. It is also a popular choice among those people.
Who Should File ITR-4?
For AY 2024-25, the ITR 4 form is essential to the following taxpayers:
- Individuals and HUFs who are residents: Those who live in India and make income from a presumed business or profession may file ITR 4.
- Partnership companies (other than LLPs) that are Residents: Partnership companies—excluding Limited Liability Partnerships (LLPs)—that are Indian residents with income from a presumptive business or profession are additionally qualified to file ITR 4.
The taxpayer’s whole income must combine from the following sources to be eligible to file ITR-4:
- Salaries
- One house property
- Under sections 44AD, 44ADA, or 44AE, assumed business income
- Income from different sources, including interest, etc.
However, if the company’s revenue exceeds Rs. 2 crores, the taxpayer must file ITR-3 rather than ITR 4.
ITR-4’s Applicability
Those who have picked the assumed income plan under sections 44AD, 44ADA, or 44AE of the Income Tax Act are personally covered by the ITR-4 form and under HUF. Instead of keeping thorough accounting records, this method lets people calculate their taxed income based on a percentage of their gross sales or turnover.
Small taxpayers are supposed to be freed from the responsibility of keeping books of accounts and improving their tax compliance with the expected taxing system. Choosing this plan allows people to take advantage of lowered legal requirements and a more accessible tax filing system.
How to File ITR-4 for AY 2024-25?
Filing ITR-4 for the AY 2024-25 is a simple process that needs a few basic steps. This detailed help will assist you to handle the process:
Download the ITR-4 Form: First, obtain the ITR 4 form through an e-submitting link or the official Income Tax Department site. The form is offered in digital and paper formats, so you can pick the one that best fits your needs.
Complete the Essential Information: After you hold the ITR 4 form, you must complete the relevant data. This covers your income sources, expenses, and tax payments, in addition to your personal data—name, address, and Permanent Account Number (PAN).
Add Essential Documents: Your income sources will decide if you need to send certain records to bolster your ITR 4 application. These might consist of:
- Form 16 (for income from salary).
- Receiving house rent Investment proofs
- Are there any further relevant records?
Make sure you have everything you need before starting the filing process.
Determining the Tax Liability: After you have completed the specifics and added the necessary papers, you must determine your tax liability. This involves calculating your total taxable income using the appropriate tax rates to get the final tax number. Should you have previously paid taxes—that is, via TDS or advance tax—you may balance them against your tax owed. Should more taxes be due, you must pay before turning in the ITR 4 form.
Send the ITR-4 Form: Submitting the ITR 4 form online by the due date set by the Income Tax Department comes last. The reporting process may be finished via the e-filing site or any other approved e-filing system provider. While sending ITR 4, keep all the necessary paperwork and proof close at hand to ensure a perfect and correct filing system. This will ensure that your tax filing is in order and help you avoid any delays or problems.
Key Highlights of ITR-4
You should be aware of the following important ITR 4 form highlights:
- Scheme of Presumptive Income: The ITR 4 form is meant for people who have chosen the assumed income plan under sections 44AD, 44ADA, or 44AE, as was already stated. Instead of keeping thorough records of accounting, this tool lets them decide their taxed income depending on a percentage of their gross sales or trade.
- Simplified Filing System: The ITR 4 form is meant to ease small taxpayers’ tax filing experience. Choosing the assumed income plan will help filers have an easier filing experience and a lessened legal load.
- Limit on Turnover: The ITR-4 form is important for taxes whose income is not over Rs. 2 crores. If the business turnover is more than this limit, the taxpayer will have to send ITR-3 instead.
- Inappropriate Income Sources: Income from many sources—including pay, one-home property, assumed company revenue, and interest—can be recorded using the ITR-4 form.
- Due Date: Usually matching the due date for other ITR forms—usually July 31st of the relevant assessment year—the due date for submitting the ITR 4 form for AY 2024-25 is also the same. Still, it’s always a good idea to visit the official website or contact a tax consultant for the most recent information on the reporting deadlines.
Conclusion
Taxpayers who want to ensure tax law compliance and avoid fines or interest charges must use the right ITR form. Designed especially for small taxpayers with a turnover not more than Rs. 2 crores who have chosen the presumptive income plan, ITR 4, or “Sugam,” expressly Understanding the qualifying requirements, applicability, and ITR-4 filing procedure helps taxpayers to streamline their tax compliance and concentrate on their company development. See a tax expert or refer to the Income Tax Department’s papers if you have further questions or need help.
