Legal Darbar is providing the ITR-4 Return filing service, which is an income tax return form for individuals, HUFs, and firms (excluding LLPs) opting for the Presumptive Taxation Scheme under Sections 44AD, 44ADA, or 44AE. It is applicable to those with business income up to ₹2 crore or professional income up to ₹50 lakh, where income is calculated on a presumptive basis. Salaried individuals, rental income earners, and those with interest income can also file ITR-4 if they meet the eligibility criteria. However, it is not for individuals with capital gains, foreign income, or directors in a company. Filing requires Form 26AS, bank statements, and tax payment. legaldarbar.com
The legal darbar will tell you who should file an ITR-4 return filing.
- Business Income (Under Section 44AD): Your entire turnover/gross earnings cannot exceed ₹2 crore.
You choose assumed taxes, in which income is estimated as 8% (cash transactions) or 6% (digital transactions) of turnover. - Professional Income (Under Section 44ADA): You are a freelancer or professional (e.g., doctor, lawyer, architect) with gross receipts of up to ₹50 lakh.
Income is assumed to be 50% of the total sales (accounting is optional). - Income from the Goods Transport Business:
You have up to ten goods carriages.
The expected monthly income is ₹1,000 per ton per vehicle. - Other income sources include salary and pension:
Income from one house property includes interest income from FDs, savings, and other sources.
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Legal Darbar gives you the best advantages for ITR-4 return filing:
1. Simple and easy tax filing and compliance: Remove the need for extensive accounting records.
Financial records, such as profit and loss statements and balance sheets, are not required, and it has less paperwork than ITR-3.
2. Lower Tax Burden: Section 44AD (business income) calculates tax on 8% (digital receipts) or 6% (cash transactions) of total turnover, lowering taxable income. under the Section 44ADA (professionals such as doctors, lawyers, and contractors), only 50% of gross receipts are considered taxable Section 44AE (transportation industry) considers fixed income per vehicle rather than real income.
3. Inspection Exemption: If total turnover falls within the limit (₹2 crore for businesses and ₹50 lakh for professions), no tax audit is required, which saves money on auditing and accounting services.
4. Time-saving: Simplified income declaration of a specified percentage of turnover/receipts is taxable because there is less paperwork requirement, and online filing is faster.
5. Reduced Examination: Because profit is pre-declared based on a probable percentage, the IT department is less likely to issue a surveillance notice.
6. Facilitates loan and visa applications: Filing ITR-4 provides income verification, making it easier to obtain business loans, loans, and visas.
Legal Darbar will tell you about the importance of ITR-4 return filing:
1. Simplified Taxation for Small Businesses and Professionals: Reduces compliance burden by allowing income declaration on an assumed basis, reducing the need for precise accounting records.
2. Compliance with income tax laws: Eligible people and organizations have to agree with income tax laws to avoid fines for not filing, which helps to avoid inspection and legal concerns from the Income Tax Department.
3. Quicker and Easier Filing: No need to keep a vast range of books and accounts such as profit and loss statements and balance sheets. Filing ITR-4 is simpler and faster than ITR-3 because just basic financial information is required.
4. Required for Loan Approvals and Financial Transactions: ITR proofs are needed by banks to approve home, business, and car loans. It serves as income verification for self-employed people and small business owners.
5. Proof of Income and Business: Helps in financial credibility when applying for tenders, government contracts, and company deals. which is crucial for applications that will demand proof of consistent income.
6. Avoiding Fines and Late Fees: Non-filing or late filing results in fines under Section 234F. Late filing may also result in interest under Sections 234A, 234B, and 234C on tax dues.
Documents Required for ITR-4 Return Filing:
1. Personal Information:
- PAN card and Aadhaar card of the person.
- Bank account details (bank name, IFSC, account number, etc.) of that particular person.
2. Income Documents:
- Salary/Pension Income
- Form 16 from your employer
- Salary slips
- House Property Income
- Rental agreement
- Home loan
- Interest certificate
- Municipal tax receipts
- Capital Gains Income
- Stock trading statement (for shares, mutual funds)
- Property sale contract
- Purchase contract of the sold property
- Interest documents from banks, post offices, etc.
- Dividend income statement
- PPF/NSC interest details
3. Investment and deductions documents:
- LIC/PPF/EPF receipts
- ELSS/Mutual Fund investment proofs
- Home loan interest & principal payment receipts
- Tuition fee receipts
- Medical insurance premium receipts
4. Foreign Income & Assets: Details of foreign bank accounts, properties, and income sources
5. Tax Payments: Form 27AS used for verifying TDS Details Advance tax/self-evolution tax payment challans.legaldarbar.com
FAQs for ITR-4 Return filing?
ITR-4 (Sugam) is for individuals, HUFs, and corporations (apart from LLPs) with notional income under Sections 44AD, 44ADA, or 44AE and total income of < ₹50 lakh.
ITR-4 removes investment gains, foreign income, risky company earnings, professional income over ₹50 lakh, lottery winnings, and income from multiple homes or partnerships.
A taxpayer with a loss cannot file ITR-4 (Sugam). They must file ITR-3 or ITR-5, based on their company structure and needs.
Yes, ITR-4 (Sugam) can be filed online using the Income Tax e-filing platform with Aadhaar OTP, net banking, or a Digital Signature Certificate (DSC).
Yes, professionals who are applying for ITR-4 can claim automatic taxation under Section 44ADA, which taxes 50% of their total earnings as income and removes the need for detailed spending records.
E-filing is mandatory for ITR-4 (Sugam), but for the super citizens who can file cannot file electronically are eligible for physical paper work at income tax department
The due date for filing ITR-3 is July 31 for individuals and October 31 for taxpayers requiring inspection, unless extended by the government
Yes, you can submit ITR-3 without a CA if a tax inspection is not essential. Use the income tax portal or software to ensure proper filing.
For suspected taxation consumers, Legal Darbar simplifies ITR-4 filing by ensuring accurate computation, compliance, document preparation, error correction, and smooth filing.