Resident Individual / HUF / Firm
Excluding LLPs. NRIs and companies cannot use ITR-4.
Simplified presumptive tax return for small businesses, professionals and goods carriers. No books of account, no tax audit when income is declared at or above the deemed percentage. Deemed profit calculation, Chapter VI-A claims, 26AS/AIS reconciliation. For resident individuals, HUFs and partnership firms (excl. LLPs).
Fill out the form to consult our specialists for ITR-4 Sugam filing assistance.
Income Tax Department — sample acknowledgement / certificate
Illustrative sample. Your official certificate is issued after approval.
ITR-4 Sugam is the simplified income tax return form for taxpayers who opt for the presumptive taxation scheme under Sections 44AD, 44ADA or 44AE of the Income Tax Act, 1961. “Sugam” means simplified — it removes the need for detailed books, P&L and Balance Sheet when you declare income at the deemed percentage.
It is available to resident individuals, HUFs and partnership firms (excluding LLPs). Under 44AD, deemed profit is 8% of cash turnover and 6% of digital turnover (limits ₹2 crore / ₹3 crore with 95%+ digital). Under 44ADA, 50% of gross receipts for specified professionals (limits ₹50 lakh / ₹75 lakh with 95%+ digital). Section 44AE covers goods carriers with up to 10 vehicles. Total income must not exceed ₹50 lakh for ITR-4 eligibility in typical cases.
| Parameter | 44AD (Business) | 44ADA (Profession) | 44AE (Goods Carriage) |
|---|---|---|---|
| Who | Eligible businesses | Specified professionals | Plying / hiring goods carriages |
| Limit | ≤ ₹2 Cr (₹3 Cr if 95%+ digital) | ≤ ₹50 L (₹75 L if 95%+ digital) | ≤ 10 vehicles |
| Deemed profit | 8% cash / 6% digital | 50% of receipts | Per vehicle (tonnage / fixed) |
| Books / audit | Not required if ≥ % | Not required if ≥ 50% | Not required if ≥ deemed |
Excluding LLPs. NRIs and companies cannot use ITR-4.
44AD / 44ADA / 44AE limits met; digital vs cash bifurcation applied correctly.
If total income exceeds this, ITR-3 (or another form) is typically required.
Capital gains or income from more than one house property generally disqualify ITR-4.
| Aspect | ITR-4 (Presumptive) | ITR-3 (Regular) |
|---|---|---|
| Basis | Deemed % of turnover/receipts | Actual profit from books |
| Books | Not required | Required (P&L + Balance Sheet) |
| Tax audit | Not required if ≥ deemed % | May apply under Section 44AB |
| Expense claims | No separate expense deductions | Actual expenses (Ss 30–37) |
| Best for | Small business / professionals within limits | Those claiming actual expenses or above limits |
Business accounts to verify turnover/receipts and digital vs cash split.
GSTR-1 / GSTR-3B to cross-check declared turnover for GST-registered taxpayers.
Tax credit and Annual Information Statement for reconciliation.
For login and e-verification.
Chapter VI-A (80C, 80D, etc.) if claiming under the applicable regime.
Form 16 or interest certificates if you have salary, pension or other sources.
Confirm resident status, scheme (44AD/44ADA/44AE), turnover limits and total income ≤ ₹50 lakh.
Gross turnover/receipts verified; digital vs cash split applied for correct deemed %.
Presumptive income computed; Chapter VI-A and other allowed claims applied.
Tax credits and reported income reconciled to reduce mismatch risk.
Return prepared and filed; e-verification support and post-filing notice support.
44AD vs 44ADA vs 44AE and limit checks so you stay within ITR-4 and avoid defective returns.
Correct bifurcation so the 6%/8% (or higher limit) is applied accurately.
Credits matched so TDS and reported income align and notice risk stays low.
Presumptive taxpayers typically pay 100% advance tax by 15 March — we flag this in the process.
Resident individuals, HUFs and partnership firms (excluding LLPs) opting for presumptive taxation under 44AD, 44ADA or 44AE, within the turnover/receipt limits, with total income typically not exceeding ₹50 lakh, and without capital gains or multiple house properties that would require another form.
8% of cash turnover and 6% of digital turnover. The higher ₹3 crore turnover limit applies only if 95% or more of receipts are through banking/digital modes; otherwise the limit is ₹2 crore.
50% of gross receipts for specified professionals (e.g. legal, medical, engineering, accountancy). Receipt limit is ₹50 lakh (₹75 lakh if 95%+ digital).
No, if you declare income at or above the prescribed deemed percentage. If you declare below that and your income exceeds the basic exemption, you may have to maintain books, get a tax audit and file ITR-3.
Typically 31 July of the assessment year for non-audit cases. Confirm the current year date on the Income Tax portal.
Yes. Deductions under Chapter VI-A (e.g. 80C, 80D) can be claimed as applicable, subject to the regime and other conditions.
You should declare the higher actual profit. The deemed percentage is a minimum threshold, not a maximum.
No. LLPs and companies are not eligible for these presumptive schemes under ITR-4. Partnership firms (other than LLPs) can use ITR-4 if other conditions are met.
Comprehensive support: eligibility check, digital vs cash bifurcation, deemed profit, Chapter VI-A, 26AS/AIS recon and e-verification. For small businesses, professionals and goods carriers under 44AD / 44ADA / 44AE. File within limits and stay compliant.
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