ITR-4 is the income tax return form used by individuals, Hindu Undivided Families (HUFs) and Partnership firms who have income from a presumptive business. A presumptive business means a business where the income is estimated based on a certain percentage of gross receipts or turnover.
ITR-4 is also known as Sugam and is applicable to taxpayers who have opted for the presumptive taxation scheme under Section 44AD, Section 44ADA, and Section 44AE of the Income Tax Act.
Under the presumptive taxation scheme, taxpayers are not required to maintain detailed books of accounts and can declare their income at a prescribed rate of 8% or 6% of the gross receipts or turnover, depending on the nature of their business.
To file ITR-4, taxpayers need to provide details of their gross receipts or turnover, as well as any other income such as interest income, rental income, etc. Taxpayers also need to provide details of their expenses, if any, and deductions claimed.
Once the relevant information is entered in the form, the taxable income is calculated automatically. Taxpayers can then pay the tax due, if any, and file their ITR-4 online on the Income Tax Department's e-filing portal or offline by submitting a physical copy of the form to the relevant income tax office. It is important to file ITR-4 within the due date to avoid any penalties or late fees.