Casela Advisors

Business Enquiries +91-9819 000 227 / +91-9819 000 511 / +91-9819 000 147 / +91-9765 000 966

Get in Touch

ITR-4 (Sugam) Filing Services

ITR-4 — popularly known as "Sugam" (simple) — is the simplified return form prescribed under the Income-tax Act, 1961 read with the Income-tax Rules, 1962 and annual CBDT notifications — specifically designed for small taxpayers whose business or professional income is computed on a presumptive basis under Section 44AD (eligible businesses), Section 44ADA (specified professions), or Section 44AE (goods carriages). The core philosophy of ITR-4 is ease of compliance — it allows small proprietors, professionals, and eligible firms to declare income at a prescribed presumptive rate of turnover / receipts without maintaining detailed books of accounts under Section 44AA or undergoing tax audit under Section 44AB, provided prescribed turnover thresholds and conditions are met.

ITR-4 is available to a Resident Individual, a Resident HUF, or a Resident Firm (other than an LLP) whose total income for the financial year does not exceed Rs. 50 lakh and who has income from (i) business computed presumptively under Section 44AD — 6% of digital / banking turnover and 8% of cash turnover, subject to the current turnover limit (Rs. 2 crore, enhanced to Rs. 3 crore where cash receipts do not exceed 5% of total receipts); (ii) profession computed presumptively under Section 44ADA at 50% of gross receipts, subject to the receipt limit (Rs. 50 lakh, enhanced to Rs. 75 lakh where cash receipts do not exceed 5%); (iii) goods-carriage business under Section 44AE; and / or (iv) salary / pension, one house property, and other sources income such as interest and family pension. ITR-4 is not available to non-residents, RNOR, directors, holders of unlisted shares, persons with foreign assets or foreign income, taxpayers with capital gains (beyond the limited Section 112A window notified by CBDT), income above Rs. 50 lakh, agricultural income above Rs. 5,000, lottery / speculative income, or those with brought-forward loss — in all such cases ITR-3 applies.

Our ITR-4 Filing Services cover the full presumptive-taxation compliance cycle — from eligibility assessment (ITR-4 vs ITR-3 decision), presumptive rate application and validation under 44AD / 44ADA / 44AE, old vs new regime comparison under Section 115BAC with Form 10-IEA filing where old regime is chosen, Form 16 / 26AS / AIS / TIS reconciliation, accurate computation of presumptive income, advance tax discipline under Section 211(1)(b) for 44AD taxpayers, filing on the portal, e-verification, Section 143(1) intimation review, refund tracking, rectification, and revised / belated / ITR-U filings — so that every Sugam return is genuinely simple for the taxpayer, optimised for tax, and robust enough to stand up to processing and any subsequent scrutiny cycle.

Rs. 50 Lakh
Upper income limit
6% / 8% / 50%
Presumptive rates
No Books / Audit
Simplified compliance
Resident Only
Individual / HUF / Firm
Laws & Frameworks We Work Under
Income-tax Act, 1961
Sec 44AD – Business
Sec 44ADA – Profession
Sec 44AE – Goods Carriage
Sec 115BAC – Regime
Sec 139(1) / (4) / (5)
Form 10-IEA – Opt-Out
Sec 211 – Advance Tax

Main Taxpayer Categories Covered by ITR-4

44AD Business

Small Business Proprietors

Eligible small businesses declaring 6% / 8% presumptive income on turnover under Section 44AD.

  • Retail & wholesale
  • Trading & distribution
  • Small manufacturing
  • Restaurants & cafes
  • Rs. 2 Cr / 3 Cr limit
  • 6% digital / 8% cash
44ADA Profession

Specified Professionals

Doctors, CAs, advocates, architects, interior designers declaring 50% presumptive receipts.

  • Medical / dental / veterinary
  • Legal practice
  • CA / CS / CMA
  • Architecture / engineering
  • Rs. 50L / 75L limit
  • 50% presumptive
44AE Transport

Goods Carriage Owners

Transporters owning up to 10 goods carriages declaring per-vehicle presumptive income.

  • Up to 10 vehicles
  • Rs. 1,000 / tonne / month
  • Heavy goods carriage
  • Other goods vehicles
  • No turnover threshold
  • Simplified disclosure
Hybrid

Presumptive + Salary / Pension

Presumptive income taxpayers who also have salary, pension, or family pension within ITR-4 scope.

  • Salary + 44AD business
  • Pension + 44ADA practice
  • Family pension + business
  • One house property
  • Interest income
  • Combined filing
Small Firm

Resident Firms (Non-LLP)

Partnership firms (other than LLPs) opting for presumptive taxation under Section 44AD.

  • Partnership (not LLP)
  • Resident firm only
  • 44AD business
  • Partner remuneration
  • Sec 40(b) compliance
  • Single-GSTIN operation
Freelancer

Freelancers & Small Service

Freelance professionals, small service providers, and gig workers within 44ADA / 44AD scope.

  • IT consultants
  • Content writers / designers
  • Tuition / coaching
  • Small service units
  • Digital-first receipts
  • Foreign receipt caveats

Key ITR-4 (Sugam) Concepts at a Glance

Sec 44AD

Business Presumptive

6% of digital / banking turnover; 8% of cash turnover; turnover limit Rs. 2 Cr (Rs. 3 Cr digital).

6% / 8% Rs. 2-3 Cr
Sec 44ADA

Profession Presumptive

50% of gross receipts; receipt limit Rs. 50 lakh (Rs. 75 lakh where cash is below 5%).

50% Rs. 50-75L
Sec 44AE

Goods Carriage

Rs. 1,000 per tonne per month for heavy vehicles; Rs. 7,500 per month for other vehicles (up to 10).

Per Vehicle Upto 10
Eligibility Cap

Rs. 50 Lakh Income

Total income — including presumptive plus salary / other sources — must not exceed Rs. 50 lakh.

Total Income Fy Limit
5-Year Lock

44AD Continuity Rule

Opt-out of 44AD requires books / audit for next 5 years before re-entry is allowed.

5 Years Audit Lock
Advance Tax

Single Instalment

Under Section 211(1)(b), 44AD / 44ADA taxpayers pay 100% advance tax by 15 March.

15 March 100%
115BAC

Default New Regime

Business-income taxpayers must file Form 10-IEA to opt into the old regime — restrictive.

Default 10-IEA
Due Date

31 July

ITR-4 due date for non-audit taxpayers — subject to CBDT extensions.

Sec 139(1) Belated 31 Dec

What Our ITR-4 Filing Engagement Covers

Advisory

Eligibility & Regime Advisory

ITR-3 vs ITR-4 decision, presumptive fit, regime comparison, and Form 10-IEA strategy.

  • ITR-4 eligibility test
  • 44AD / 44ADA / 44AE scope
  • 5-year lock assessment
  • Old vs new regime
  • Form 10-IEA filing
  • Advance tax planning
Filing

Preparation & Reconciliation

Turnover / receipt computation, 26AS / AIS match, schedule drafting, and self-assessment tax.

  • Gross receipts / turnover
  • Digital vs cash split
  • Form 16 / 26AS / AIS
  • GST turnover linkage
  • Section 80 deductions
  • Self-assessment tax
Post-Filing

Verification & Follow-Up

E-verification, 143(1) intimation review, refund tracking, and corrective filings where needed.

  • E-verification
  • 143(1) intimation review
  • Refund follow-up
  • Rectification u/s 154
  • Revised / belated / ITR-U
  • Notice response

Our ITR-4 Filing Services

01

44AD Business ITR-4

Presumptive business filing at 6% digital / 8% cash rate with full turnover reconciliation.

02

44ADA Professional ITR-4

50% presumptive filings for specified professionals — doctors, CAs, advocates, architects, engineers.

03

44AE Goods Carriage

Per-vehicle presumptive filings for transporters owning up to 10 goods carriages.

04

Hybrid Salary + Presumptive

Combined ITR-4 where salary / pension coexists with small business or professional income.

05

Small Resident Firms

Presumptive filing for partnership firms (other than LLPs) opting under Section 44AD.

06

Form 10-IEA Advisory

Timely Form 10-IEA filing and strategy on old-regime opt-out for presumptive taxpayers.

07

Revised / Belated / ITR-U

Revised under Sec 139(5), belated under 139(4), and updated returns under 139(8A).

08

Notice & Intimation Support

143(1) intimation review, rectification under Sec 154, and response to 143(2) / 142(1).

When You Need Expert ITR-4 Filing Support

Eligibility Uncertainty

Not sure whether you fit ITR-4 or must move to ITR-3 — professional diagnostic needed.

GST vs ITR Turnover

GSTR-3B / GSTR-1 turnover must reconcile with ITR-4 turnover — mismatches invite notices.

Digital vs Cash Split

Applying correct 6% / 8% rates requires careful digital-vs-cash turnover tracking.

Hybrid Income

Salary / pension plus business / profession income that still qualifies for ITR-4 filing.

Form 10-IEA Deadline

Wanting the old regime as a business-income taxpayer — Form 10-IEA must be filed in time.

5-Year Lock Concern

Considering opt-out of 44AD — 5-year audit lock-in needs to be factored in.

Foreign Receipts

Freelancers with foreign remittance must assess eligibility and FEMA compliance carefully.

Notice / Intimation

143(1) intimation showing tax demand or 143(2) scrutiny notice — expert response needed.

Information & Documents Needed for ITR-4

Identity & Tax

  • PAN / Aadhaar
  • Bank account details
  • Form 16 (if salary)
  • Form 26AS / AIS / TIS
  • Advance tax challans
  • Section 80 proofs
  • DSC (optional for ITR-4)

Business / Profession Data

  • Gross turnover figure
  • Digital vs cash split
  • Gross receipts (44ADA)
  • GST returns (if any)
  • Vehicle details (44AE)
  • Bank statements
  • UPI / digital receipts

Other Income & Property

  • Pension order
  • Rent receipts
  • Home loan certificate
  • Bank interest
  • FD statements
  • Partner remuneration
  • Family pension

Our End-to-End ITR-4 Filing Approach

1

Eligibility Check

Confirming ITR-4 fit, presumptive section applicability, and residency status.

2

Turnover & Reconciliation

Gross turnover / receipts, digital vs cash split, GST / 26AS / AIS reconciliation.

3

Regime & Computation

Old vs new comparison, Form 10-IEA (if old), presumptive income, and self-assessment tax.

4

Filing & Verification

Portal filing and e-verification via Aadhaar OTP / EVC within 30 days.

5

Post-Filing Support

143(1) intimation review, refund follow-up, and rectification if required.

Why Choose Us for ITR-4 Filing

✓
CA-reviewed every return
✓
Presumptive section expertise
✓
GST-ITR turnover reconciliation
✓
Digital vs cash discipline
✓
Form 10-IEA handled in time
✓
5-year lock advisory
✓
Fast refund discipline
✓
Notice & intimation support

FAQs on ITR-4 (Sugam) Filing

Who is eligible to file ITR-4 (Sugam)?
ITR-4 is available to a Resident Individual, a Resident HUF, or a Resident Firm (other than an LLP) whose total income during the financial year does not exceed Rs. 50 lakh and whose income is from — business computed presumptively under Section 44AD (subject to the Rs. 2 crore turnover limit, enhanced to Rs. 3 crore where cash receipts do not exceed 5%), profession computed presumptively under Section 44ADA (subject to the Rs. 50 lakh receipt limit, enhanced to Rs. 75 lakh where cash receipts do not exceed 5%), goods-carriage business under Section 44AE (up to 10 vehicles), salary / pension, income from one house property, and other sources such as bank / FD interest and family pension (excluding lottery and race winnings). ITR-4 is not available to non-residents, RNOR, directors, holders of unlisted shares, foreign-asset holders, persons with agricultural income above Rs. 5,000, capital gains beyond ITR-1's limited Section 112A window, or anyone with brought-forward or carry-forward losses.
What is presumptive taxation and how is it computed under Sections 44AD, 44ADA, and 44AE?
Presumptive taxation is a simplified scheme under the Income-tax Act where eligible taxpayers declare a fixed percentage of turnover / receipts as income, without maintaining detailed books of accounts under Section 44AA or undergoing tax audit under Section 44AB. Under Section 44AD, eligible businesses declare 8% of total turnover / gross receipts as income, reduced to 6% in respect of turnover received through account-payee cheque, draft, ECS, or prescribed digital modes. Under Section 44ADA, specified professions (medical, legal, engineering, architectural, accountancy, technical consultancy, interior decoration, and notified other professions under Section 44AA(1)) declare 50% of gross receipts as income. Under Section 44AE, transporters owning up to 10 goods carriages declare Rs. 1,000 per tonne per month for heavy vehicles (above 12 tonnes) and Rs. 7,500 per month for other vehicles. These presumptive profits are deemed final — no further expense deduction is allowed, except Section 40(b) remuneration for firms under 44AD.
What are the current turnover / receipt limits for Section 44AD and 44ADA?
Under Section 44AD of the Income-tax Act, the eligible turnover limit for business is Rs. 2 crore, enhanced to Rs. 3 crore with effect from FY 2023-24 onwards where the aggregate cash receipts during the financial year do not exceed 5% of the total turnover / gross receipts. Under Section 44ADA, the eligible gross receipts limit for specified professions is Rs. 50 lakh, enhanced to Rs. 75 lakh with effect from FY 2023-24 onwards where the aggregate cash receipts during the year do not exceed 5% of the total receipts. These enhanced limits reward digital / banking-channel receipts and penalise high cash collections. For any taxpayer close to these thresholds, careful tracking of digital vs cash split is essential to preserve presumptive eligibility, because crossing the limit shifts the filing to ITR-3 with full books and potential tax audit.
What is the difference between ITR-3 and ITR-4?
ITR-4 is the simplified, presumptive-taxation return designed for small taxpayers under Sections 44AD / 44ADA / 44AE — minimal schedules, no books, no tax audit, and presumptive income at prescribed rates. ITR-3, by contrast, is the full-fledged return for Individuals / HUFs earning income from business or profession computed under regular books under Section 28, requiring Profit & Loss, Balance Sheet, Schedule BP, depreciation schedules, and tax audit under Section 44AB where turnover or receipts cross thresholds. A taxpayer who is eligible for presumptive taxation but declares lower than the presumptive percentage (with total income above the basic exemption limit) is obligated to maintain books under Section 44AA and get them audited under Section 44AB(e), filing ITR-3. Capital gains, foreign assets, directorships, and other disqualifying factors also force a shift from ITR-4 to ITR-3, regardless of turnover levels.
What is the 5-year lock-in rule under Section 44AD?
Under Section 44AD(4) of the Income-tax Act, once a taxpayer opts for presumptive taxation and subsequently declares income lower than the presumptive percentage (or opts out of 44AD) in any year, the taxpayer is locked out of the Section 44AD benefit for the next 5 consecutive assessment years. During this lock-in period, the taxpayer is required to maintain books under Section 44AA and get accounts audited under Section 44AB (if total income exceeds the basic exemption limit). This is one of the most under-appreciated consequences of opting out of 44AD — a single off-year can effectively force regular ITR-3 filing with audit for 5 years, even if turnover remains well below threshold. This is why we strongly recommend a careful evaluation — with CA input — before declaring lower than 6% / 8% or exiting the presumptive scheme.
How is advance tax paid by ITR-4 filers?
Advance tax rules are specifically relaxed for taxpayers declaring under Sections 44AD and 44ADA. Under Section 211(1)(b) of the Income-tax Act, such taxpayers are required to pay the whole of their advance tax liability (if any) in one instalment on or before 15 March of the financial year, instead of the usual four instalments (15 June, 15 September, 15 December, 15 March) applicable to other taxpayers. Taxpayers under Section 44AE continue to follow the standard four-instalment schedule. Failure to pay advance tax or paying below 90% of assessed tax attracts interest under Section 234B, and deferment attracts interest under Section 234C — so computing and paying the 15 March instalment accurately is critical. Our service includes an advance tax estimate for every ITR-4 client ahead of the deadline.
Can ITR-4 be filed under the old regime? What is Form 10-IEA?
Under Section 115BAC of the Income-tax Act, the new tax regime is the default regime from FY 2023-24. For Individuals / HUFs with business or professional income — which includes presumptive income under 44AD / 44ADA — opting for the old regime requires filing Form 10-IEA online on the portal on or before the Section 139(1) due date. The old-regime acknowledgement number from Form 10-IEA must be quoted in ITR-4. Once Form 10-IEA is filed, the old regime applies; the taxpayer is allowed a one-time switch back to the new regime, after which the old regime is no longer available. Salaried taxpayers without business income can switch regimes year-on-year without Form 10-IEA — but ITR-4 filers with business / professional presumptive income must follow the Form 10-IEA route. A missed or delayed Form 10-IEA can lock the taxpayer into the new regime, removing material deduction benefits.
What is the due date for filing ITR-4 and what are the late-filing consequences?
For ITR-4 filers — who are by definition not subject to tax audit under Section 44AB (since they are under the presumptive scheme) — the due date under Section 139(1) is 31 July of the assessment year, subject to CBDT extensions. Belated returns under Section 139(4) can be filed up to 31 December of the same assessment year, subject to late fee under Section 234F (Rs. 1,000 where total income is up to Rs. 5 lakh, Rs. 5,000 where it exceeds Rs. 5 lakh), plus interest under Sections 234A / 234B / 234C where applicable. Revised returns under Section 139(5) can also be filed up to 31 December. Beyond this window, only updated returns under Section 139(8A) (ITR-U) are available, which require additional tax on top of regular tax and interest — making costs escalate sharply. For 44AD / 44ADA filers, timely 15 March advance-tax payment and 31 July filing is the cleanest and cheapest path.

Presumptive Filing Made Truly Simple — With CA Review

Partner with our CAs for end-to-end ITR-4 (Sugam) Filing Services — eligibility, 44AD / 44ADA / 44AE, Form 10-IEA, GST-ITR match, and post-filing support — under one roof.

File My ITR-4