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ITR-4 Return Filing Services

The ITR-4, also known as the Sugam Form, is intended for taxpayers who choose the Presumptive Taxation Scheme under Sections 44AD, 44ADA, or 44AE of the Income Tax Act. Filing this form is a legal requirement for individuals, Hindu Undivided Families (HUFs), and firms (excluding LLPs) meeting the criteria under these sections.

If a business has a turnover above ₹2 Crores, ITR-4 is not applicable, and the taxpayer should file using ITR-3. In certain situations, ITR-5 may also be relevant based on the nature of the entity.

At MEQUINTRAX DIGITALSERVICES PRIVATE LIMITED, we provide end-to-end support for accurate and timely ITR-4 filing. Our tax experts are here to help you stay compliant and avoid penalties with ease.

Who Can File ITR-4 for Assessment Year 2024–25?

ITR-4 is applicable to Resident Individuals, Hindu Undivided Families (HUFs), and Firms (excluding LLPs) who meet the following conditions:

  • Their total income during the financial year does not exceed ₹50 lakh
  • They earn income from a business or profession that is computed under the presumptive taxation scheme as per Sections 44AD, 44ADA, or 44AE

They may also have additional income from:

  • Salary or pension
  • One house property
  • Agricultural income up to ₹5,000
  • Other sources such as:
  • Interest from savings accounts
  • Interest on fixed deposits (from banks, post offices, or cooperative societies)
  • Interest from income tax refunds
  • Family pension income
  • Interest on enhanced compensation
  • Other interest income like interest from unsecured loans

Who Is Not Eligible to File ITR-4 for AY 2024–25?

The following individuals, HUFs, or firms (other than LLPs) cannot use ITR-4 for filing their returns:

  • Non-Resident Indians (NRIs) or those classified as Resident but Not Ordinarily Resident (RNOR)
  • Persons whose total income exceeds ₹50 lakh during the financial year
  • Taxpayers with agricultural income exceeding ₹5,000
  • Individuals serving as Directors in companies
  • Those earning income from more than one house property
  • Individuals who held unlisted equity shares at any time during the year
  • Those who have deferred tax on Employee Stock Options (ESOPs) received from eligible startups
  • Anyone not fulfilling the eligibility conditions outlined for ITR-4
Taxpayers with the following income types:

  • Lottery winnings
  • Income from horse racing activities
  • Income taxed at special rates under Sections 115BBDA or 115BBE

What is the Presumptive Taxation Scheme?

Under Section 44AA, taxpayers engaged in business or profession are generally required to maintain regular books of accounts. However, to ease compliance for small businesses and professionals, the Income Tax Act offers the presumptive taxation option. This scheme allows eligible taxpayers to calculate income on an estimated basis instead of actual income, saving time and reducing paperwork.

Who Can Opt for the Presumptive Taxation Scheme in ITR-4?

The presumptive taxation scheme is available for:

  • Resident Individuals
  • Hindu Undivided Families (HUFs)
  • Partnership Firms (excluding LLPs)
  • Certain transport businesses including individuals and non-residents

Types of Presumptive Taxation Schemes under ITR-4

  • Section 44AD – For Small Businesses

    This section applies to resident individuals, HUFs, or resident partnership firms (except LLPs) engaged in eligible businesses. The main features include:


    • Gross turnover or receipts must not exceed ₹2 crore in a financial year
    • Income is presumed at 8% of turnover (6% if digital transactions)
    • No requirement to maintain detailed books of accounts
    • Not applicable for businesses dealing in commission, brokerage, or agency

    Section 44ADA – For Professionals

    Applicable to resident individuals engaged in specified professions as defined under Section 44AA(1), such as:

    • Legal
    • Medical
    • Engineering
    • Architectural
    • Accountancy
    • Technical consultancy
    • Interior decoration
    • Other notified professions

    Key highlights:

    • Gross receipts should not exceed ₹50 lakh in a financial year
    • Income is presumed at 50% of total gross receipts
    • No need to maintain detailed financial records

    Section 44AE – For Transport Operators

    This section is designed for taxpayers engaged in the business of plying, hiring, or leasing goods carriages. It is applicable to:

    • Individuals
    • HUFs
    • Firms (excluding LLPs)
    • Both residents and non-residents

    Conditions:

    • Should not own more than 10 goods vehicles at any time during the year
    • Income is calculated on a per-vehicle, per-month basis (as prescribed by the Act)
    • No need to maintain books of accounts

    Benefits of Filing ITR-4 under the Presumptive Taxation Scheme

    • Simplified tax calculation
    • No requirement to maintain regular books of accounts
    • Reduced compliance and audit obligations
    • Ideal for freelancers, consultants, small shopkeepers, and transporters

    If you're a small business owner, independent professional, or transporter looking for a hassle-free way to manage your taxes, filing ITR-4 under the presumptive taxation scheme could be the perfect solution.


    Would you like us to help you determine your eligibility and file your ITR-4 seamlessly?


Structure of ITR-4 for AY 2024–25

  • The ITR-4 form is organized into several key sections to capture the taxpayer’s financial and tax-related details. Here’s a breakdown of its structure:

    • Part A – General Information
      Basic personal and filing details such as name, PAN, address, filing status, and Aadhaar number.

    • Part B – Gross Total Income
      Summary of income under various heads like Salary, House Property, Business or Profession, and Other Sources.

    • Part C – Deductions and Taxable Income
      Includes deductions claimed under Chapter VI-A (like Section 80C, 80D, etc.) and calculation of total taxable income.

    • Part D – Tax Computation and Tax Status
      Details of the tax payable, tax paid, and refund status based on the final tax liability.

    • Schedule BP – Business or Profession Income
      Information about income calculated under the presumptive taxation scheme—Sections 44AD, 44ADA, and 44AE.

    • GST Details
      If applicable, provide your GSTIN and report your total turnover or gross receipts as declared under GST.

    • Financial Particulars of Business
      Disclosure of key financial data such as cash balance, debtors, creditors, assets, and liabilities.

    • Schedule IT, TCS & TDS 1
      Information on advance tax payments, self-assessment tax, Tax Collected at Source (TCS), and TDS from salary.

    • Schedule TDS 2
      Statement of Tax Deducted at Source (TDS) on income other than salary—like interest or professional fees.

    • Verification Section
      A declaration by the taxpayer affirming the accuracy of the information provided, followed by signature or e-verification.

    • When using the SUGAM return form, taxpayers are not required to upload any additional documents, including TDS certificates.


Top 6 Reasons to File Your ITR-4 with a Trusted Tax Filing Expert

Expert Support from Qualified Tax Professionals

Our team of experienced Chartered Accountants and tax experts specialize in ITR-4 filing under the Presumptive Taxation Scheme (Sections 44AD, 44ADA & 44AE). MEQUINTRAX ensures full compliance with the latest income tax provisions to help you avoid penalties, notices, or delays.

Timely Filing to Avoid Penalties

At MEQUINTRAX, we prioritize your deadlines. Our streamlined filing process ensures your ITR-4 is submitted well before the due date, helping you steer clear of late fees, interest charges, and income tax scrutiny.

Transparent and Pocket-Friendly Pricing

Enjoy clear and honest pricing with MEQUINTRAX DIGITALSERVICES PRIVATE LIMITED. Our affordable ITR-4 packages are specially designed for freelancers, consultants, and small business owners—with no hidden charges.

100% Online, Hassle-Free Filing Experience

MEQUINTRAX offers a fully paperless experience. Upload your documents securely, and let our experts handle the rest. We protect your financial data with secure digital platforms while giving you a seamless tax-filing journey.

Personalized Tax-Saving Guidance

Along with filing your ITR-4, we also offer professional guidance on tax-saving opportunities tailored to your unique financial situation. This ensures you're maximizing deductions legally while keeping your tax burden low.

Dedicated Relationship Manager

Each MEQUINTRAX client is assigned a personal tax advisor for timely updates, documentation support, and any help you need throughout the ITR-4 filing process so you're never left in the dark.

? Who can file ITR-4 for AY 2024–25?

? Can I opt for the old tax regime while filing ITR-4?

? Can I switch between old and new tax regimes every year if I have business income?

? What is the due date to file Form 10-IEA?

? Will I get all deductions if I opt for the old tax regime while filing ITR-4?

? What documents are required to file ITR-4?

? What is the threshold limit for opting into the presumptive taxation scheme under Section 44AD and 44ADA?

? Can I opt for presumptive taxation under Section 44AD if my business turnover exceeds ₹3 crore?

? Do I have to pay advance tax under Section 44ADA?

? What is required to claim deductions under Section 80DD and 80U?


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