ITR-4 (Sugam) Return Filing under Presumptive Taxation
Simple, audit-free ITR-4 filing for small businesses, professionals and transporters under Sections 44AD, 44ADA and 44AE — income declared at prescribed rates, no detailed books required.
ITR-4 (Sugam) is the simplified return for resident individuals, HUFs and partnership firms (other than LLPs) that opt for presumptive taxation — Section 44AD for small businesses (turnover up to ₹2 crore, or ₹3 crore where cash receipts are 5% or less), Section 44ADA for professionals (gross receipts up to ₹50 lakhs, or ₹75 lakhs with the same digital condition) and Section 44AE for transporters owning up to 10 goods vehicles — with total income up to ₹50 lakhs. Income is declared at prescribed rates (8%/6% of turnover, 50% of receipts) without maintaining detailed books, and from AY 2025-26 the form also permits long-term gains u/s 112A up to ₹1.25 lakh.
ITR-4 eligibility and who should use it
ITR-4 exists to keep small businesses and independent professionals out of bookkeeping and audit requirements. Declare income at the presumptive rate, pay tax, and you are done — the department accepts the rate as final.
The form is for residents only, and disqualifications mirror ITR-1: no directorships, no unlisted shares, no foreign assets, not more than one house property, and total income within ₹50 lakhs. Outside these limits, ITR-3 takes over.
- Small businesses, shops and traders under Section 44AD
- Professionals — IT consultants, doctors, architects, designers — under 44ADA
- Transporters with up to 10 goods carriages (44AE)
- Resident individuals, HUFs and partnership firms (not LLPs)
- Total income up to ₹50 lakhs
- LTCG u/s 112A up to ₹1.25 lakh now permitted
- Salary or pension and one house property alongside
What's included in ITR-4
The presumptive schemes and disclosures the form is built around.
Section 44AD — Business
8% of turnover deemed as income — reduced to 6% for amounts received digitally or through banking channels.
Section 44ADA — Professionals
50% of gross receipts deemed as income for specified professionals — legal, medical, engineering, accountancy, technical consultancy and more.
Section 44AE — Transporters
Per-vehicle presumptive income for goods carriage owners with up to 10 vehicles, based on tonnage and months of ownership.
GST & Turnover Disclosure
GSTIN and turnover reported in the return, reconciled with GST filings and AIS so the numbers never contradict each other.
Chapter VI-A Deductions
80C, 80D and other eligible deductions claimed over and above the presumptive income, with an old vs new regime comparison.
Minimal Books, No Audit
No detailed books of account and no tax audit while you stay within the scheme's conditions — that is the entire point of Sugam.
ITR-4 deadlines and scheme rules
Presumptive taxation has its own calendar — and one rule people forget.
31 July — Due Date
Presumptive taxpayers are not audit cases — the return is due by 31 July of the assessment year (unless extended).
15 March — Advance Tax
Presumptive taxpayers pay the entire advance tax in a single instalment by 15 March instead of four quarterly instalments.
The 5-Year Rule
Opt out of 44AD by declaring lower profits, and you are barred from re-entering for 5 years — with books and audit if income exceeds the exemption limit.
31 December — Belated / Revised
Missed or made an error? Belated and revised returns can be filed up to 31 December of the assessment year, with late fees u/s 234F.
Our ITR-4 filing process
The fastest compliant route for small businesses and professionals.
Turnover & Receipts
Bank statements and GST data used to establish turnover and the digital-receipts percentage that decides your rate and limits.
Presumptive Computation
The right scheme applied — 44AD, 44ADA or 44AE — with Chapter VI-A deductions and regime comparison built in.
Review & Approval
Draft computation shared with the exact tax payable and any advance tax shortfall flagged before filing.
E-File & Verify
ITR-4 filed on the income tax e-filing portal and e-verified, with the acknowledgment shared instantly.
Presumptive filing that actually holds up
Simple form, real consequences — we keep both in view.
Right-scheme selection
44AD vs 44ADA vs regular books is a financial decision, not a formality — we model both routes before choosing.
Turnover reconciliation
Declared turnover matched with GST returns, 26AS and AIS, because that is exactly what the department's systems compare.
Digital-receipts tracking
The enhanced ₹3 crore / ₹75 lakh limits depend on cash receipts staying at 5% or less — we verify before claiming them.
5-year rule guidance
Before you opt out of presumptive taxation, we quantify what the next five years will cost you in books and audit.
CA-reviewed filing
Every ITR-4 is reviewed by a Chartered Accountant, so a simple form never turns into a defective return notice.
Grows with your business
Crossing the limits? We transition you smoothly to ITR-3, business tax filing and TDS compliance.
ITR-4 filing questions answered
The presumptive scheme, explained in plain language.
Ready to file your ITR-4?
Share your bank statements and GST data. We'll confirm your eligibility, compute your presumptive income and file your ITR-4 the same week.
