ITR 4 (Sugam) A.Y.2024-25: How to File ITR-4 Online?

ITR-4 (Sugam) A.Y.2024-25: The tax return form ITR-4 (Sugam), also called Income Tax Return Form 4, is meant for individuals, Hindu Undivided Families (HUFs), and firms (except Limited Liability Partnerships) having income from business or profession. It is applicable to those persons whose total income does not exceed ₹50 lakh and income from business or profession is computed on presumptive basis under sections 44AD, 44ADA or 44AE. Such returns can include salary/pension, one house property, agricultural income up to ₹5,000 and other sources like interest income etc., family pension etc. However, ITR-4 should not be filed by certain persons such as non-resident Indians (NRIs), directorship in companies at any time during the year and total income exceeding fifty lakh rupees among others.

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Quick Summary for ITR-4 A.Y.2024-25

Topic Information
Form Name ITR-4 (Sugam)
A.Y. (Assessment Year) 2024-25
Eligible Taxpayers Individuals, Hindu Undivided Families (HUFs), and firms (excluding Limited Liability Partnerships)
Income Criteria Total income should not exceed ₹50 lakh
Presumptive Basis Income from business or profession computed on a presumptive basis under sections 44AD, 44ADA, or 44AE
Inclusions Income from salary/pension, one house property, agricultural income up to ₹5,000, and other sources such as interest income, family pension, etc.
Exclusions Non-resident Indians, directors of companies, individuals with income exceeding ₹50 lakh, etc.
Eligible Taxpayers for ITR-4 1. Resident Individuals
2. Hindu Undivided Families (HUFs)
3. Firms (Other than LLP)
Ineligible Taxpayers for ITR-4 1. RNOR and NRIs
2. Total Income Exceeding ₹50 Lakh
3. Agricultural Income above ₹5,000
4. Directors in a Company
5. Income from More Than One House Property
6. Income of a Specific Nature, etc.
Filing Procedures Online Filing or Partially Online and Partially Offline Filing
Documents Required PAN, Aadhaar Number, Bank Account Details, Form 16, Form 26AS, Bank Statements, House Property Documents, Investment and Expense Documents, Business and Profession Details, Other Income Details, Aadhaar OTP
Changes in ITR-4 A.Y. 2024-25 No significant changes compared to previous years

What is ITR?

ITR is also known as Income Tax Return Forms. There are multiple ITR forms available for filing income tax returns in India. The specific form to be used depends on the type of taxpayer, nature of income, and other applicable criteria.

ITR-1 (SAHAJ): For individuals having income from salary, one house property, other sources (excluding winning from lottery and income from race horses), and total income up to ₹50 lakh.

ITR-2: For individuals and HUFs (Hindu Undivided Families) not having income from business or profession, and who are not eligible to file ITR-1.

ITR-3: For individuals and HUFs having income from business or profession as a partner in a firm and not eligible to file ITR-4.

ITR-4 (SUGAM): For individuals, HUFs, and firms (other than LLP) having income from business or profession computed on a presumptive basis under sections 44AD, 44ADA, or 44AE.

ITR-5: For persons other than individuals, HUFs, companies, and those filing ITR-7.

ITR-6: For companies other than companies claiming exemption under section 11 (exempt income).

ITR-7: For persons including companies required to furnish return under sections 139(4A), 139(4B), 139(4C), or 139(4D) (for charitable trusts, political parties, research associations, news agencies, and institutions).

In this article, we will discuss ITR-4.

What is ITR-4?

ITR-4, also known as “SUGAM,” is an Income Tax Return form in India. It is primarily designed for individuals, Hindu Undivided Families (HUFs), and firms (other than Limited Liability Partnerships) who have income from business or profession computed on a presumptive basis. The ITR-4 form is filed under the provisions of sections 44AD, 44ADA, or 44AE of the Income Tax Act, 1961.

Who Is Eligible to Use ITR-4?

SUGAM or ITR-4 can be used by the subsequent Indian taxpayers:

1. Individual Residents: Only those individuals who have resided in India for a year that is being assessed can fill out the form ITR-4.

2. Hindu Undivided Families (HUFs): Hindu undivided families are allowed to file their returns using ITR-4 if they have a business income that is calculated based on assumption prescribed under Section 44AD, 44ADA or 44AE.

3. Firms (Other than LLP): A partnership firm that isn’t an LLP with its presumptive income from business/profession being computed under section 44AD, 44ADA or 44AE may use SUGAM for filing income tax return.

This version of the Income Tax Return must be utilized only when certain conditions are met, including:

a) Earnings Limit: The gross total income should not exceed Rs.50 lacs during the financial year.

b) Presumptive Basis: If an individual’s profit and gains from business / profession are estimated according to any of these three sections – 44AD; 44ADA & AE.

In addition to this, such taxpayers must also possess other sources of revenue i.e., salary/pension (if applicable), one house property; agricultural receipts up-to five thousand rupees among others except for lottery winnings and/or race horses’ earnings which should not be included while filing returns through SUGAM/ITR -4.

Who Cannot Use ITR-4?

The following individuals, Hindu Undivided Families (HUFs) and firms (other than Limited Liability Partnerships) are not allowed to file their income tax return in India using ITR-4:

1. Resident Not Ordinarily Resident (RNOR) and Non-Resident Indians (NRIs): Individuals who qualify as RNOR or NRIs for the relevant financial year cannot use ITR-4.

2. Total Income Exceeding ₹50 Lakh: Taxpayers having total income exceeding ₹50 lakh during the financial year are not eligible to file ITR-4.

3. Agricultural Income above ₹5,000: If a taxpayer has agricultural income more than ₹5,000, then he/she cannot use ITR-4.

4. Directors in a Company: Individuals who act as directors in any company – private or public both – are restricted from filing ITR-4; they should choose the appropriate income tax return form according to their sources of income.

5. Income from More Than One House Property: A taxpayer having income from multiple house properties cannot use ITR-4; such individual must select suitable applicable ITR form for persons having income from more than one property.

6. Income of Specific Nature: Taxpayers with income of specified nature cannot opt for ITR 4. Such incomes include winnings from lottery, owning and maintaining race horses and any other amount taxable at special rates under section 115BBDA or 115BBE.

7. Holding Unlisted Equity Shares: Any taxpayer who holds any unlisted equity shares at any time during the previous year cannot file his/her return using this form i.e., ITR 4.

8. Deferred Income Tax on ESOP from Eligible Start-up: If an individual has received Employee Stock Ownership Plan (ESOP) from his employer which is an eligible start-up whereon he has deferred income tax, then he is not allowed to fill-up ITR-4.

9. Non-Compliance with Eligibility Conditions: Taxpayers who fail to meet any of the specified eligibility conditions for filing ITR-4 cannot use this form.

How to File ITR-4 Online or Offline

1. Online Filing: ITR-4 can be filed online through the official e-filing portal of Income Tax Department (https://www.incometax.gov.in). Fill the form online, validate the details and submit it. Return can be e-verified using Aadhaar OTP, Net Banking or other available methods.

2. Partially Online and Partially Offline Filing:  Use offline utility provided by Income Tax Department. Download it from e-filing portal, install on computer and fill the ITR-4 form offline. Generate an XML file of filled-in form. Visit e-filing portal to upload XML file and submit your return online. Choose to e-verify return using Aadhaar OTP, Net Banking or other methods OR sign physical copy of ITR-V and send it to Centralized Processing Centre (CPC) within 30 days

Procedure to ITR-4 Online A.Y. 2024-25

Here is the procedure to file ITR-4 online for A.Y.2024-25

Step 1: Log in to the e-Filing Portal

To begin the process of filing ITR-4 online, log in to the official e-Filing portal of the Income Tax Department using your user ID and password. (Procedure to check login on income tax portal)

Step 2: Access the Income Tax Return Section

On your dashboard, navigate to the “e-File” tab and select “Income Tax Returns” followed by “File Income Tax Return.”

Step 3: Choose Assessment Year and Filing Mode

Select the relevant Assessment Year (2024-25) and choose the filing mode as “online.” Click “Continue” to proceed.

Step 4: Select Applicable Status

Choose the applicable status option that best describes your taxpayer status “Individual/HUF” and click “Continue” to proceed further.

Step 5: Select the Type of Income Tax Return

Select the ITR form applicable to you “ITR-4”.

Step 6: Read the Instructions and Begin Filling out the Form

Carefully read the instructions provided on the screen to fill out the form correctly. Take note of the required documents and click “Let’s Get Started” to begin filling in the form.

Step 7: Review and Enter the Data

Review the pre-filled data in the form and make any necessary edits. Enter any remaining or additional data as required in each section of the form. Click “Confirm” at the end of each section to proceed.

Step 8: Answer Section 115BAC Questions

Answer the questions related to Section 115BAC, considering returns filed with business income. Select the relevant answers based on your previous tax regime choices and the filing of Form 10IE, if applicable.

Step 9: Enter Income and Deduction Details

Enter your income and deduction details in the appropriate sections of the form. Once completed, click “Proceed” to move to the next step.

Step 10: Review Tax Computation

If there is a tax liability, you will be shown a summary of your tax computation based on the details provided. You can choose to pay the tax immediately using the “Pay Now” option or pay later. It is recommended to use the “Pay Now” option to avoid any interest or default penalties.

Step 11: Verify the Return and Make the Payment

If there is no tax liability or if you are eligible for a refund, you will be taken to the Preview Return page. Review your return and proceed to validation. Once validated, select your preferred verification option and continue.

Step 12: e-Verify the Return

Choose the method through which you want to e-Verify your return and follow the instructions provided. It is mandatory to verify your return, and e-Verification is a quick, paperless, and secure method.

Step 13: Confirmation and Completion

Once you have successfully e-Verified your return, a confirmation message will be displayed. You can now consider your ITR-4 filing process complete.

Note: Remember to keep a copy of the acknowledgment for future reference.

I.T.R – 4 (Sugam) Documents Required for A.Y. 2024-25

When you are filing ITR-4 online, you usually do not need to enclose any documents with it. The Income Tax Department has introduced the concept of “E-filing” or electronic filing where an individual can file his return on the Internet without physically attaching any documents.

However, you must have the following relevant documents as mentioned below such as Form 16, Form 26AS, bank statements, investment proofs, expense receipts etc., ready with you for reference and verification. The Income Tax Department may ask for these documents for scrutiny/verification at a later stage if required.

It is advisable to keep proper record of financial transactions and supporting documents for at least six years from the end of relevant Assessment Year. Such records should be kept ready for inspection if demanded by income-tax authorities during assessment or scrutiny proceedings.

1.Personal Information:

– PAN (Permanent Account Number)

– Aadhaar Number (if applicable)

– Bank account details (account number, IFSC code etc.)

2.Form 16: If salary has been received by an individual from employer then he needs Form 16 which gives information about his salary , tax deductions and TDS (Tax Deducted at Source) deducted on it.

3.Form 26AS: This form shows details of tax credits , TDS and other tax related information as per the records of ITD.

4.Form 16A: In case income other than salary is received by a person and TDS has been deducted on it , he may require Form 16A.

5.Bank Statements: It is advisable to have bank statements for all your bank accounts for the entire financial year as it helps in confirming your income and expenses.

6.House Property Documents: If you own a house property then you might need ownership proof , rental agreements and details of rental income received etc.

7.Investment and Expense Documents:

– Investment related documents such as FD statements, Mutual Funds statements, Stocks, Bonds etc.

– Receipts of insurance premium payment (Life insurance , health insurance etc.)

– Receipts of tuition fees paid for self or children

– Receipts of donations made to eligible charitable institutions

– Home loan interest certificates (if any)

8.Business and Profession Details (if applicable):

– Profit and Loss Account statement

– Balance Sheet statement

– Details of business expenses like Rent, Salaries, Office expenses etc.

– GST details (if registered under GST)

– Bank statements relating to business transactions.

9.Other Income Details:

– Details of income from other sources like interest income , rental income , capital gains etc.

-TDS certificates if any for income other than salary

10.Aadhaar OTP (One-Time Password): If you choose to e-verify your income tax return using Aadhaar OTP then make sure that you have your registered mobile number handy to receive the OTP.

Pre-Requisites for online filing ITR-4

These requirements are aimed at making it easy and fast to file your ITR-4 form over the internet.

1. PAN Card: Ensure that you have a valid PAN card issued by the Income Tax Department. It is an alphanumeric code unique to every tax return filer in India.

2. Access to Income Tax Department’s e-Filing Portal: To be able to submit your tax returns electronically, you must log into the official website of the Indian Income Tax Department. Register if you do not have an account already.

3. Documents such as Form 16 and other income-related papers – Collect all necessary documents related to your income like forms 16 (given by employer), form 16A (for income from sources other than salary) and other relevant statements showing interest earned, rental income received or capital gains made etc.

4. Bank Account Details: Keep ready your bank account number along with branch address including IFSC code as this will be required in case any refund has to be given by department against excess paid taxes during year

5. Aadhaar Number: Make sure that you possess valid Aadhaar number allotted by UIDAI because it is mandatory now days for individuals to link their PAN cards with Aadhar while filing returns..

6. Digital Signature Certificate (DSC): If you want sign IT Return electronically then ensure that Valid Digital Signature Certificate is available with you which can be used instead of signing physical copy of return form

7. Genuine E-mail ID & Mobile Number: Provide only correct email id and mobile no while registering on e-Filing site of IT department since most communication / verification will be done through these channels only

8. Refund Bank A/c.: In case refund arises out of tax computation after submission of ITR, please ensure that active bank account held singly or jointly having minimum 2 holders is maintained exclusively for receiving such credit; also don’t forget to pre-validate this a/c on I-T portal.

Due Dates to File ITR-4 A.Y.2024-25

The due dates for the Assessment Year 2024-25 (Financial Year 2023-24) of ITR-4 are as follows:

For Individuals and HUFs (who are not required to get their accounts audited under the Income Tax Act or any other law):

– Non-audit cases: The due date is generally 31st July 2024.
– Audit cases: The due date is generally 31st October 2024.

ITR-4 A.Y.2024-25 Structure

Different sections should be carefully completed in the ITR-4 form before submitting online. These sections are Personal Information, Gross Total Income, Disclosures and Exempt Income, Total Deductions, Taxes Paid, and Total Tax Liability.

1. Personal Information:

– This part presents your personal information taken automatically from your e-Filing profile. You may modify contact details if necessary in the e-Filing profile along with filing type details, authorized representative, partner details (if applicable) and bank details.

2. Gross Total Income:

– In this section you have to verify income sources such as salary/pension; house property; business or profession; and other sources like interest income etc., also provide additional information if required.

3. Disclosures and Exempt Income:

– Under this head you are required to furnish financial particulars relating to business; details of gross receipts reported for GST (optional); any exempt income etc..

4. Total Deductions:

– You can enter here any deduction under Chapter VI-A of the Income Tax Act which you want to add/verify.

5. Taxes Paid:

– Here you need to cross check taxes paid by you during last year i.e., TDS from salary/other income; TCS (Tax Collected at Source); Advance Tax; Self-Assessment Tax etc..

6. Total Tax Liability:

– This shows computation of income, tax liability and cess & interest if any applicable thereon so please review it based on previous sections provided information about tax liability too should be reviewed accordingly.

47 thoughts on “ITR 4 (Sugam) A.Y.2024-25: How to File ITR-4 Online?”

  1. There is no income other than interest on income. The Bank has deducted an income tax of Rs.1200 on an interst income of Rs 100000 plus for the F.Y.2015-15 A.Y.2016-17.Which form shall beused for recovery of tax.

    Reply
    • hello Bishwas, You can file 4S if you declare your profit over 8%. It is very simple form and without filing any balance sheet, you can easily file your income tax return. Ask further if you have any query.

      Reply
  2. sir i am salaried person but i have lost some amount in share market in F&O segment. kindly tell me which form of ITR valid for me where i can show my loss.

    meena kumary

    Reply
  3. request to Income Tax Department – please provide Excel Utility ITR Form no. 4 for online filing purpose at the earliest – ITS LATE NOW

    Reply
  4. request to Income Tax Department – please provide Excel Utility ITR Form no. 4 for AY 14-15 for online filing purpose at the earliest

    Reply
  5. request to Income Tax Department – please provide Excel Utility ITR Form no. 4 for online filing purpose at the earliest

    Reply
  6. Sir,

    Please us know when the ITR-4 – 4S and ITR-5 will come
    in Excel utility 2014-2015 ?

    Thanks

    Pravin Yadav

    Reply

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