5paisa Research Team

Last Updated: 27 May, 2024 05:33 PM IST


Want to start your Investment Journey?



This comprehensive guide delves into the world of ITR-4, also known as Sugam. It's a simplified income tax return form designed for specific taxpayers in India. We'll explore everything you need to know about ITR-4, from who qualifies to use it to the intricacies of filing it electronically.
By the end of this guide, you'll gain a clear understanding of:

  • What ITR-4 is and its benefits
  • Who is eligible to file ITR-4
  • Who cannot file ITR-4
  • The structure of ITR-4
  • How to file ITR-4 online
  • Verifying your ITR-4 filing
  • Significant changes (if any) in the ITR-4 form for recent assessment years
  • Frequently Asked Questions (FAQs) about ITR-4

What is the ITR-4 (Sugam)?

ITR-4 (Sugam) is an income tax return form specifically designed for individuals, Hindu Undivided Families (HUFs), and firms (other than Limited Liability Partnerships). It offers a simplified filing process by leveraging the presumptive taxation scheme. This scheme allows eligible taxpayers to estimate their business or professional income based on a percentage of their total receipts, eliminating the need for maintaining detailed accounting records.

Who Needs to File ITR-4?

To determine if ITR-4 is the right fit for you, consider the following criteria:

  • Resident Taxpayer: You must be a resident of India as per tax regulations.
  • Income Type: Your primary income sources should be:

Business or profession computed under sections 44AD, 44ADA, or 44AE of the Income Tax Act. These sections pertain to presumptive taxation schemes for businesses and professionals with specific turnover or receipt limits.

  • Salary/Pension income
  • Income from a single house property
  • Agricultural income up to ₹5,000/-
  • Other sources (excluding lottery winnings and racehorse income)

Income Limit: Your total income for the financial year should not exceed ₹50 lakh.
Business Turnover Limits:

  • For businesses opting for section 44AD: Turnover should be under ₹3 crore (if cash transactions are less than 5%)
  • For professionals opting for section 44ADA: Professional receipts should be under ₹75 lakh (if cash transactions are less than 5%)

Who Are Not Eligible to File ITR-4?

If any of the following situations apply to you, you won't be able to file ITR-4:

  • You're classified as a Resident Not Ordinarily Resident (RNOR) or a non-resident Indian.
  • Your total income surpasses ₹50 lakh.
  • Your agricultural income exceeds ₹5,000/-.
  • You hold a director position in a company.
  • You have income from more than one house property.

Your income includes:

  • Winnings from lotteries
  • Income from owning and maintaining race horses
  • Income taxable at special rates under sections 115BBDA or 115BBE of the Income Tax Act

Structure of ITR-4

ITR-4 is designed for a user-friendly filing experience. It typically includes sections for:

  • Personal Information: Basic details like your PAN card number, name, address, etc.
  • Gross Total Income: This section captures your income from various sources like business, salary, interest income, etc.
  • Disclosures and Exempt Income: This section allows you to disclose any exempt income or make necessary disclosures mandated by the Income Tax Department.
  • Total Deductions: This section allows you to claim deductions under various sections of the Income Tax Act (if applicable).
  • Taxes Paid: This section focuses on the advance tax, Tax Deducted at Source (TDS), etc., that you've paid during the financial year.
  • Total Tax Liability: This section calculates the final tax amount payable after considering deductions and taxes already paid.

How to File ITR Form 4 (Sugam) Online?

Filing ITR-4 electronically is convenient and efficient. You can utilize various websites, including those offered by the government and tax filing service providers. The general process involves:
1. Creating an Account: Establish an account on the chosen website and link your PAN card for identification.
2. Verification: Verify your account details using a One-Time Password (OTP) sent to your registered mobile number or email address.
3. Select ITR Form: Choose the "ITR-4 (Sugam)" form from the available options.
4. Enter Personal Information: Fill in your personal details like name, PAN number, address, etc.
5. Income Details: Enter your income details from various sources. This includes:

  • Business or professional income (if applicable)
  • Salary income (if applicable)
  • Income from house property (if applicable)
  • Income from other sources (interest income, capital gains, etc.)
  • Agricultural income (up to ₹5,000/-)

6. Deductions: If eligible, claim deductions under various sections of the Income Tax Act. Common deductions include medical expenses, interest on home loan, travel allowances, etc.
7. Taxes Paid: Enter details of any advance tax or Tax Deducted at Source (TDS) you've already paid during the financial year.
8. Review and Submit: Carefully review all the entered information before submitting your ITR-4 electronically.

Additional Tips

  • Keep all your income tax documents readily available while filing your return. This may include Form 16 (for salary income), bank statements, investment receipts, etc.
  • Utilize the pre-filled data provided by the Income Tax Department (if available) to expedite the filing process.
  • Double-check all the entered information before submitting your return to avoid errors.

Verification of ITR-4

Once you've electronically filed your ITR-4, you need to verify it. Here are the two verification methods:
1. Uploading a digitally signed verification statement with your Aadhaar: This method is the most convenient. You can electronically sign the verification statement using your Aadhaar e-Sign facility.

2. Sending a physical ITR-V form (verification form) generated after filing to the Income Tax Department's Centralized Processing Center (CPC): This method is slower and requires printing a physical copy of the ITR-V form generated after filing your return. You'll need to sign and mail the ITR-V form to the CPC address mentioned on the form.

Significant Changes in ITR-4 Form for AY 2023-24 and AY 2024-25

The ITR-4 form for Assessment Years (AY) 2023-24 and 2024-25 remains largely unchanged. However, it's always recommended to check the official Income Tax Department website for any potential updates or minor revisions before filing your return.


ITR-4 offers a simplified way for eligible taxpayers to file their income tax returns in India. By understanding the eligibility criteria, structure of the form, and the filing process, you can leverage this option and potentially save time and effort. Remember to always refer to the latest guidelines from the Income Tax Department for any potential changes or clarifications.

More About Tax

Open Free Demat Account

Be a part of 5paisa community - The first listed discount broker of India.


Frequently Asked Questions

ITR-4 is specifically designed for taxpayers eligible for the presumptive taxation scheme. ITR-1 (Sahaj) is for resident individuals with income from salary, pension, one house property, and other sources (up to ₹5000). ITR-3 is for individuals and HUFs with income from business or profession (not under presumptive scheme), capital gains, and other sources.

No, there are no specific provisions within ITR-4 for senior citizens or individuals with disabilities. However, senior citizens above 75 years and individuals with disabilities with income up to ₹5 lakh might be exempt from filing income tax returns altogether, depending on their income sources and deductions.

It's highly recommended to e-file ITR-4. The process is faster, more convenient, and reduces the risk of errors compared to manual filing. In most cases, manual filing of ITR-4 is not allowed.

Late filing of ITR-4 attracts a penalty as per the Income Tax Act. The penalty amount can vary depending on the delay and your total income. It's best to file your return on time to avoid any penalties.