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Filing of Income Tax Return - 4

1750* Basic Package

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Overview

ITR-4 stands for Income Tax return form number 4. It is also known as Sugam form. The Sugam form is filled by the taxpayers earning under the presumptive income schemes under section 44AD, 44ADA, and 44AE of IT Act. But if a business’s annual turnover is more than 2 Crore, they cannot file ITR-4. In such cases, they need to file ITR-3. 

ITR-4 is a presumptive taxation scheme that exempts small taxpayers from bookkeeping. 

The taxpayers who are eligible to file ITR-4:

The taxpayers’ eligible to file ITR-4 must-have business income under the following criteria:

1) Total income must not exceed INR 50 lakhs

2) Must be having business income under section 44AD and 44AE

3) Must be having income from profession under the section 44ADA

4)Having agricultural income up to INR 5000

5) Income less than or equal to fifty lakh from a one house property

6) Income from other sources excluding income from lotteries or horse races

7) The freelancers can also file ITR-4 if their income doesn’t exceed INR 50 lakhs

The taxpayers who are not eligible to file ITR-4:

The individuals who have income from the following sources cannot file ITR-4. It includes:

1) If you are a director of an organization

2) If you hold any unlisted equity or shares at any time during the previous year

3) Any individual having assets outside India

4)If any individual signs authority in an account outside India

5) Has profits from businesses that don’t fall under section 44AD, 44ADA, and 44AE

6) Any capital gains made

7) Have incomes from more than one property

8) If anyone makes any income from other sources such as lottery, horse races

9) Anyone having an income that needs to be apportioned under the provision of section 5A

10) If any individual’s agricultural income exceeds INR 5,000

11) Has loss under the head of income from other sources

12) Has claim of relief under section 90, 90A and 91

13) Joint ownership in a property

14) If you have any deduction claim under section 57

Due dates for filing ITR-4 Sugam form:

In the non-audit cases, all the taxpayers have to file their ITR-4 sugam form on or before 30th November.

Advantages

1. ITR receipt is a precious document

When you file your income tax returns, the income tax department provides you a receipt in return. This receipt is a precious document. It contains more detailed data as compared to Form 16. Thus, filing your income tax returns helps you record all your taxations with revenue from different sources.

2. ITR receipt serves as address proof

When an individual files his/her income tax returns, the IT department sends the receipt to the registered address of the person/ entity. Thus, it serves you as your residential proof. You can show it as your proof of address in organizations like banks and NBFCs. 

3. Easy processing of bank loans

Filing your income tax returns offers you various benefits to avail loans. One such is easy processing of bank loans. When you apply for a bank loan, the bank will verify your eligibility. Thus, filing income tax returns makes it easier for you to avail any loan. The returns act as a strong document. It shows the poof of income to the loan provider. 

Whether it is a house credit, personal mortgage, or vehicle loan, you can show provide the copies of your ITR statements for easy processing of the bank loans.

4. Compensation of the losses in the next financial year

Until you file your income tax returns, you cannot compensate for your losses to the next financial year. According to the IT Act, if you do not file your income tax returns on time, your losses will not be adjusted. You cannot compensate losses for the next financial year. Thus, to ensure that you compensate your losses, you must file your Income-tax returns on time. 

5. Avoid extra interests

If you don’t file your income tax returns on time, you will be liable to pay extra interest 1% on the tax as a penalty. This penalty shall keep on adding until you file your returns. For example, a bank deducts taxes at source from the interest of the fixed deposit. In order to claim the refund of the TDS, you must file your taxable income. In case you don’t file your returns then you have to pay extra interest on the deposits, 

6. Avoid penalties

As per the IT Act, if an individual doesn’t file income tax returns on time, he/she will be held liable to pay the penalty up to INR10, 000. and this penalty shall keep on adding until you file your returns.

7. Easy credit card processing

When you apply for credit cards, the banks usually verify your income tax returns. So, if you don’t file your income tax returns, the bank may reject your credit card application. 

8. Hassle-free visa processing 

Sometimes the Visa Authorities may ask you the documents of your past tax returns. Thus, if you are applying for Visa, you must file your income tax returns on time. Filing the IT will eliminate all the hassles in Visa applications. You can get a Visa easily. 

9. Helpful for the freelancers and independent professionals 

The individuals who are independent professionals or freelancers don’t have form 16. Thus it might get difficult for them to avail of any financial benefits. Income tax returns are the only document that shows the proof of income for them. Thus, if you are freelancers or independent professional, you must file you ITR without wasting time. It will eliminate the funding issues and transactional problems.

Disadvantages

1. Interest loss on refunds: 

When you file for a refund in your tax returns that you paid in advance, you will lose some interest in filing your ITR late

2. Losses will not carry forward: 

If you file ITR-4 after the due dates, your losses will not be carried forward except house property losses.

3. Penalties: 

Filing the ITR late also results in a penalty of interest 1% per month. The penalty starts from the due date and continues until you make the payment.

Document Required

Form 16:   

  • If you are salaried, it is one of the essential documents needed to file ITR-4. It shows all the tax deduction made by the employer.

Interest certificates from bank or NBFCs:  

  • If you are repaying a home loan, you can show the statements from banks or NBFCs. It will help in tax deductions. In case you don’t get an interest certificate from the bank, you can also show your updated passbook.

Form 16A, 16B, and 16C: 

  • Form 16A shows the details about TDS deduction; 16B shows the details of TDS deduction in selling a property. And form 16C shows the TDS deduction on rent provided.

Form 26AS:   

  • It shows all the consolidated tax statements.

Tax saving investment proofs:   

  • It shows you the detail about the investment made on EPF. PPF, mutual funds, life insurance, and National pension system.
  • Deduction under 80D to 80UHome loan statement from bank or NBFC
  • Capital gains made
  • Aadhar card

Time Lines

  • (3 to 5 Days)
  • Purchase the Service
  • Upload / send the Documents
  • Discussion with expert
  • Filing of application with department
  • Receipt of Acknowledgement
  • Confirmation to client

Service Covered

Pricing for what you want required service

Basic

1750*
  • Expert Consultation
  • Return filing for a taxpayer with business taxable income upto Rs.10 lakhs under presumptive taxation scheme.

Business

3750*
  • Expert Consultation
  • Return filing for a taxpayer with business taxable income upto Rs.25 lakhs under presumptive taxation scheme.

Enterprise

5450*
  • Expert Consultation
  • Return filing for a taxpayer with business taxable income more than Rs.25 lakhs under presumptive taxation scheme.
  • Notes:
  • * This price is inclusive of all Govt filing fee and excluding GST amount.

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