ITR-4 Filing (Sugam) for FY 2024-2025 (AY 2025-26): How to File ITR for Presumptive Taxation?

The ITR 4 Form, also known as the Sugam form, is tailored for taxpayers under the presumptive income scheme as per Sections 44AD, 44ADA, and 44AE of the Income Tax Act. This form is a necessity for those who are eligible under these sections. On the other hand, businesses with an annual turnover exceeding Rs. 2 Crores should use the ITR-3 form. In some cases, the ITR-5 form may also be required. In this article, we will look into the, ITR-4 form, income tax return ITR 4 applicability, ITR4 due date, procedure for ITR4 filing for the AY 2025-2026 in detail.

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What is ITR4?

Income Tax return ITR 4 for salaried employees, also known as Sugam, is specifically designed for individuals, Hindu Undivided Families (HUFs), and partnership firms (excluding Limited Liability Partnerships) who meet certain criteria. These criteria include opting for the presumptive taxation scheme under sections 44AD, 44ADA, or 44AE of the Income Tax Act, 1961. This scheme allows them to declare their income at a pre-determined rate instead of maintaining detailed accounts. However, there are limitations on total income and business turnover for using ITR-4.

Latest Update: CBDT Notifies New ITR-4 (Sugam) for FY 2024-25

The Central Board of Direct Taxes (CBDT), through Notification No. 40/2025 dated April 29, 2025, has introduced several important updates to the ITR-4 (Sugam) form, effective from April 1, 2025, for Assessment Year 2025–26. These amendments are part of the Income-tax (Twelfth Amendment) Rules, 2025 and are aimed at simplifying the filing process for taxpayers opting for the presumptive taxation scheme. 

1. Expanded Eligibility for Presumptive Taxation Scheme

For the first time, ITR-4 allows taxpayers earning long-term capital gains (LTCG) under Section 112A up to ₹1.25 lakh to file the form. Previously, the presence of capital gains disqualified a taxpayer from using this form, requiring them to file ITR-2. This update provides small investors with an easier filing process.

2. New Reporting Section for Exempt LTCG under Section 112A

A dedicated section has been introduced in ITR-4 for reporting exempt LTCG under Section 112A. Taxpayers are now required to disclose:

• Total sale consideration
• Cost of acquisition
• Exempt LTCG amount

This ensures that small investors who qualify for exemptions under Section 112A can report their capital gains clearly and accurately.

3. Mandatory E-Filing of Form 10BA for Rent Deductions

Taxpayers claiming deductions under Section 80GG for rent paid must now file Form 10BA electronically. This form must be submitted along with the income tax return. Taxpayers who are already receiving House Rent Allowance (HRA) under Section 10(13A) are not eligible for this deduction. Additionally, individuals opting for the new tax regime (Section 115BAC) are not eligible to claim this deduction.

4. Section-wise TDS Reporting in Schedule TDS/TCS

The TDS/TCS Schedule in ITR-4 now requires taxpayers to specify the exact section under which TDS was deducted. For example:

• Section 194 for TDS on dividends
• Section 194A for TDS on interest income

This ensures greater accuracy and helps match the information available in Form 16A or Form 26AS.

5. Detailed Prompts for Opting In/Out of the New Tax Regime (Section 115BAC)

ITR-4 includes prompts to help taxpayers declare their chosen tax regime. It specifically asks whether the taxpayer opted for the new regime in the previous year (AY 2024-25) and whether they are continuing or opting out of it in the current year (AY 2025-26).

• If taxpayers filed ITR-1 or ITR-2 in the previous year but did not submit Form 10-IEA, they must now submit Form 10-IEA for AY 2025-26 to opt out of the new tax regime.

This option must be exercised before the due date under Section 139(1).

6. Improved E-Filing and Refund Validation

The updated ITR-4 form now features enhanced sections for pre-validating bank account details, ensuring faster and more accurate refund processing. Taxpayers must ensure that IFSC codes, account numbers, and bank selections are correctly filled out for smooth refund credits.

7. Compliance for Non-Residents and Specific Situations

The amended Rule 12 clarifies tax filing conditions for non-residents and individuals reporting business income, capital gains, or other specific income sources. 

 Below, we have attached the new  ITR-4 form for FY 2024–25 for your reference to understand the structure:  

ITR 4 Applicability

ITR-4 is an Income Tax Return form in India designated for individuals, Hindu Undivided Families (HUFs), and firms (other than Limited Liability Partnerships or LLPs). This exclusive ITR 4 applicability is for those who opt for the presumptive income scheme under Sections 44AD, 44ADA, and 44AE of the Income Tax Act. This scheme allows eligible taxpayers to estimate their income for tax purposes, simplifying their tax compliance process.

Presumptive Taxation Scheme

The Presumptive Taxation Scheme is a part of the Indian Income Tax Act, intended to simplify tax compliance for certain small taxpayers. This scheme is relevant for individuals and businesses involved in specific activities, as detailed in Sections 44AD, 44ADA, and 44AE of the Act. Under Section 44AA, detailed accounting records are normally required for these taxpayers. However, these sections provide an alternative by allowing eligible taxpayers to estimate their income at prescribed rates, reducing the need to maintain extensive financial records.

• Section 44AD: This section is for Resident Individuals, Resident Hindu Undivided Families (HUFs), and Resident Partnership Firms (excluding LLPs). It applies to those engaged in certain business activities, allowing them to estimate their income if they meet certain conditions.
• Section 44ADA: Aimed at Resident individuals in India who are professionals in fields specified under Section 44AA(1). These professionals can estimate their income under this scheme, subject to certain conditions.
• Section 44AE: This applies to individuals, HUFs, firms (excluding LLPs), and both resident and non-resident entities involved in the business of plying, leasing, or hiring goods carriages. They can estimate their income under this scheme, provided they own no more than ten goods carriages during the previous year.

These schemes are particularly relevant for users of the ITR-4 return filing form, designed for those opting for the Presumptive Taxation Scheme under these sections.

Eligibility Criteria to file income tax return ITR4 

To be eligible for filing the income tax return ITR 4 form for the assessment year, taxpayers must meet specific criteria. The taxpayer's total income should not exceed Rs. 50 lakh. For the income tax return ITR 4 for salaried employees, The income must be derived from one or more of the following sources:

• Income from Salary or Pension
• Income from One House Property
• Interest income and Income from the family pension are taxable under 'Other Sources.'
• Income from a business is computed on a presumptive basis with a gross turnover of up to Rs. 2 crores.
• Income from a business computed on a presumptive basis involving goods carriage (up to ten vehicles).
• Income from a profession is computed on a presumptive basis under Section 44ADA (Gross receipt up to Rs. 50 lakh).

Important Notes: When income is computed on a presumptive basis under Sections 44AD, 44AE, or 44ADA, it is assumed to have accounted for all allowances, depreciation, losses, or deductions as per the Income-tax Act.

• If losses are incurred after applying the proviso to sub-section 3 of Section 44AE, the taxpayer must file ITR-5 instead.
• Suppose the taxpayer needs to include another person's income (like a spouse or minor child) with their own. In that case, the SUGAM form only applies if the additional income falls within the abovementioned categories.

Non-Applicability of Income Tax Return ITR 4 SUGAM Form

The ITR4 SUGAM form is not suitable for certain taxpayers, including:

• Directors of a company
• Individuals who have possessed unlisted equity shares at any time during the previous year.
• Taxpayers with assets or financial interests in entities located outside India.
• Individuals with signing authority in any foreign account.
• Persons with income from sources outside India.

Additionally, the SUGAM form is not for individuals with the following types of income during the previous year:

• Profits and gains from business and professions not computed under Sections 44AD, 44ADA, or 44AE of the
• Income Tax Act, such as income from agency business, speculative business, commission, or brokerage.
• Income from more than one house property.
• Capital gains.
• Income from lotteries.
• Involvement in owning and maintaining racehorses.
• Income is taxed at special rates under Sections 115BBDA or 115BBE of the Income Tax Act.
• Income needs apportionment as per Section 5A.
• Agricultural income exceeding Rs. 5,000.

This form is also unsuitable for individuals with claims related to:

• Past losses or carry-forward losses in the "Income from house property" category.
• Relief claims under Sections 9A, 90, or 91 of the Income Tax Act.
• Loss under "Income from other sources."
• Deductions under Section 57, except for family pension-related deductions.
• Tax credit claims for tax deducted at source in someone else's name.

Procedure to File your ITR-4 Form for FY 2024-25 (AY 2025-26)

Below, we have given a structured approach to file your ITR-4 Form for FY 2024-25 (AY 2025-26).

• Download ITR Utility: First, obtain ITR4 from the official Income Tax Department website.
• Part A - Personal Information & Filing Status
  • Personal Information: Fill in details like Name, PAN, Address, Date of Birth, Aadhaar Number, Email, and Mobile Number.
  • Filing Status: Indicate if it's a regular return, a revised return, or a return filed in response to a notice. If filed by a representative, provide their details.
• Part B - Gross Total Income
  • Income from Business/Profession: Report this presumptively according to the applicable section.
  • Income from Salary: Calculate by adding monetary and non-monetary parts, subtracting exempt allowances under section 10, and then deducting allowances under section 16 (standard deduction, entertainment allowance, professional tax).
  • Income from House Property: Here, the maximum set-off loss is limited to ₹2 Lakhs.
  • Other Sources: Detail the source of income and apply the standard deduction under section 57(a) for family pensions.
• Part C - Deductions and Total Income
  • Deductions are claimed under Chapter VIA of the Income Tax Act, 1961, based on the assessee's investments.
• To calculate tax liability in the ITR-4 Form:
  • Determine Tax Liability: Base this on the income tax slab rates relevant to the assessee's income bracket.
• Rebate and Relief:
  • Rebate Under Section 87A: Apply this if the income is below ₹3.5 Lakhs.
  • Relief Under Section 89: Consider this for arrears of salary received.
  • Schedule BP in ITR-4 - Sugam: This schedule is crucial for reporting business income.
  • Business Income (Section 44AD): Here, calculate the presumptive income for businesses.
  • Professional Income (Section 44ADA): Use this for the presumptive income of professions.
  • Goods Carriage (Section 44AE): This calculates presumptive income from goods carriage.
  • GST Information: Include details about Turnover or Gross Receipts reported for GST.
  • Financial Particulars of Business: Provide financial details related to the business.
• TDS Schedule under form ITR4
  • The TDS Schedule in the Indian Income Tax Return Form ITR-4 includes:
• Part 19 - TDS from Salary:
  • Data Source: Populated from Form 16, issued by the employer. Details to Include:
  • TAN (Tax Deduction and Collection Account Number) of the deductor.
  • Employer's name.
  • Income under the head 'Salary'.
  • Tax deducted from salary.
• Part 20 TDS 2(i) - TDS on Income Other Than Salary:
  • Data Source: Based on Form 16A provided by the deductor.
  • Purpose: Covers tax deducted on sources of income other than salary.
• Part 20 TDS 2(ii) - TDS on Rent:
  • Data Source: From Form 16C, the TDS certificate for rent.
  • Purpose: Addresses tax deducted at source for income from rent.
• Schedule IT of Income Tax Return Form ITR4
• Schedule IT in the Income Tax Return Form ITR-4, specifically Part 21, is designated for reporting payments related to Advance Tax and Self-Assessment Tax. Key points include:
  • This section captures details of Advance Tax paid during the financial year and any Self-Assessment Tax paid at the end of the period.
  • Required Information: Assessees must fill in details as per the payment challan, which includes:
  • BSR Code (Bankers' Serial Number Code).
  • Serial Number of the Challan.
  • Date of Payment.
  • Amount Paid.
  • Schedule TCS in the Income Tax Return Form ITR4, known as Schedule 22, is dedicated to the details of Tax
• Collected at Source (TCS). Key aspects include:
  • Schedule TCS of Income Tax Return Form ITR 4 for salaried employees
  • In the Income Tax Return Form ITR-4, Schedule TCS (Schedule 22) and Part 21 have specific functions related to tax documentation:
• Schedule TCS (Schedule 22):
  • Purpose: This schedule records the Tax Collected at Source (TCS) details.
  • Details to Include: Information as outlined in Form 27D, issued by the tax collector. This encompasses the amount of tax collected, the collector's name and TAN, and other pertinent details.
• Part 21 - Advance Tax and Self-Assessment Tax Payments:
  • Purpose: This part is for detailing payments of Advance Tax during the financial year and any Self-Assessment Tax paid at the end of the period.
  • Information Required: Assessees need to enter details from the tax payment challan, which includes:
  • BSR Code (Bankers' Serial Number Code).
  • Serial Number of the Challan.
  • Date of Payment.
  • Amount Paid.
• Schedule – Taxes Paid and Verified
  • The "Schedule – Taxes Paid and Verified" section in the Income Tax Return Form ITR-4 is designed for calculating and verifying tax liabilities. Here's a breakdown of this schedule:
• Calculation of Total Tax Liability:
  • The schedule automatically calculates the total tax liability of the assessee.
  • This calculation takes into account the details provided in the previous schedules.
  • The net liability or refund is determined by subtracting the total tax paid from the calculated tax liability based on income.
• Column/Part 28 - Bank Account Details:
  • Assesses must provide details of all bank accounts held in India during the previous year, excluding dormant accounts.
• Declaration of Information Accuracy:
  • This section includes a declaration affirming the truth and accuracy of the provided information. It also covers the capacity for filing the return, such as Self, Karta, Representative, or Partner.
• Details of Tax Return Preparer (TRP):
  • If a Tax Return Preparer prepares the return, their details and the amount payable to them must be included.
• Schedule 80G
  • Schedule 80G in the Indian Income Tax Return Form ITR-4 is dedicated to deductions claimed for donations made to charitable institutions under Section 80G. The structure of this schedule is as follows:
• Objective: This schedule is designed to calculate the total amount of deductions claimed for contributions or donations made to charitable organizations.
• Parts for Calculation:
  • First Two Parts: These are for calculating deductions that do not have a qualifying limit as specified under the law. It includes:
  • Donations eligible for 100% deduction: Here, details of the donee (recipient of the donation) and the type of donation made are listed.
  • Following this, donations that are eligible for a deduction of 50% of the donated amount are calculated.
• Verification of ITR4
  • The verification of the ITR4 form is a crucial step after filing your income tax return. Key points to note are:
  • Time Frame for Verification: Verification must be completed within 30 days of filing the ITR.
• Methods of Verification:
  • Online Verification: This can be done electronically through e-verification. It involves the use of either an OTP (One Time Password) or an EVC (Electronic Verification Code).
  • Offline Verification: Alternatively, you can opt for offline verification by sending a signed copy of the ITR-V form to the Central Processing Centre (CPC) in Bangalore.

Sample ITR4 Form

Here's the income tax return sample ITR 4 filing form for your reference,

 

ITR4 Due Date

The deadline to file the income tax return ITR 4 (SUGAM) for the FY 2024-25 (AY 2025-26) is set for July 31, 2025. To avoid a penalty, complete your income tax return ITR 4 filing process before the ITR4 due date. This is the typical due date; it might change depending on the Income Tax Department's decision. 

Latest Update on the Pay Later Option for Income Tax Filing

The Income Tax e-filing portal has recently rolled out a 'Pay Later' option, allowing you to complete your tax filing process before making any tax payments. You use the income tax return ITR-4 filing process to complete your taxes. For additional information, please refer to our guide – Pay later option for the Income tax return filing.

What are the Different ways to file ITR-4?

There are two primary methods for submitting the ITR4 form filing:

Traditional Form:

• Eligibility: This method is only available for super senior citizens.
• Process: The income tax return ITR 4 can be filed physically or by furnishing a bar-coded return.

To File ITR 4 online:

• E-filing Portal: File ITR 4 online via the Income Tax Department's e-filing portal.
• Verification: After filing, the return must be verified, which can be done in one of the following ways:

Using a Digital Signature.

• Authenticating with an Electronic Verification Code (EVC).
• Sending a duly signed ITR-V form by post to the Central Processing Centre (CPC) within 30 days.

These options to file ITR 4 online and offline provide flexibility and convenience to taxpayers, with electronic submission being the more commonly used method. Offline Filing for Super Senior Citizens: Super senior citizens (individuals aged 80 years or more during the previous year) can file ITR-4 in paper form at designated offices of the Income-tax Department, along with duly signed Form ITR-V.

Completing the ITR-V Form:

• After e filing income tax return ITR4 , print out the ITR-V Form.
• The signed ITR-V Form should be sent by ordinary post or speed post to the Central Processing Centre, Income Tax Department, Bengaluru - 560500, Karnataka.

Offline Filing Method

ITR 4 filing process offline involves submitting a physical paper form or a bar-coded return to the Income Tax Department in exchange for an acknowledgement receipt. This offline method is permissible under certain conditions:

• The individual is 80 or older (qualifying as a super senior citizen).
• The individual's income is less than Rs. 5 Lakh, and they do not have to claim a refund in the return.
• Note: The Form ITR-V should reach the CPC within 120 days from the date of e-filing the return.
• Confirmation of receipt of ITR-V at CPC will be communicated to the taxpayer through the email ID registered in the e-filing account.

ITR 4 Form Download Process

We have given the steps below for the ITR 4 Form download process:

• Visit the Official e-Filing Portal: Go to the Income Tax Department's website at 
• Access the 'Downloads' Section: Click on the "Downloads" tab available on the homepage.
• Select ITR 4 Form: Choose the appropriate Assessment Year and locate "ITR-4" under the "Forms (ITR)" section.
• Download in Preferred Format: ITR 4 form download can be done through preferred format - Excel, Java Utility, or JSON format.
• Install Required Utilities: Make sure you have the necessary software, such as Java or Excel, to open and use the form.

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Other ITR-related articles

• ITR-1 return filing
• ITR-2 return filing
• ITR-3 return filing
• ITR-5 return filing
• ITR-6 return filing
• ITR-7 return filing

FAQs on ITR-4 Filing

1. Who is eligible to file ITR-4?

ITR-4 can be filed by resident individuals, HUFs, and firms (excluding LLPs) with income from presumptive taxation schemes under Sections 44AD, 44ADA, or 44AE, and total income not exceeding ₹50 lakh. Eligible income sources include business, profession, salary, one house property, and other sources (excluding lottery winnings and horse racing income).

2. Who cannot file ITR-4?

Non-residents, RNORs, individuals with income over ₹50 lakh, directors in companies, those holding unlisted equity shares, and individuals with income from more than one house property, lottery winnings, or horse racing cannot file ITR-4.

3. What is the difference between ITR-3 and ITR-4?

ITR-3 is for individuals and HUFs with income from business or profession without presumptive taxation, while ITR-4 is for those opting for presumptive taxation under Sections 44AD, 44ADA, or 44AE. ITR-3 requires detailed financial statements, whereas ITR-4 does not.

4. Who is eligible under Section 44AD?

Eligibility under Section 44AD includes businesses with a turnover of up to ₹2 crore, where 8% of the turnover is considered as profit (6% for digital transactions).

5. Is a balance sheet required for 44AD?

No, a balance sheet is not required for businesses under Section 44AD, as this scheme relieves taxpayers from maintaining detailed accounts.

6. Does ITR-4 require audit?

Generally, ITR-4 does not require an audit since it is used for presumptive taxation schemes. However, if the turnover exceeds ₹1 crore or if other conditions apply, an audit might be necessary under different sections.

7. Can salaried employees file ITR-4?

Yes, salaried employees can file ITR-4 if they also have income from a presumptive business or profession and meet the eligibility criteria.

8. What is the turnover limit for filing ITR-4?

The turnover limit for filing ITR-4 under Section 44AD is ₹2 crore. For turnovers exceeding this amount, ITR-3 is required.

9. Can ITR-4 be filed after the due date?

Yes, ITR-4 can be filed after the due date, but late filing may incur penalties. The due date for filing is typically July 31st.

10. Where to show exempt income in ITR-4?

Exempt income, such as agricultural income up to ₹5,000, can be reported in the relevant sections of ITR-4, though specific details may vary depending on the type of income.

11. What is the difference between ITR-1 and ITR-4?

ITR-1 is for individuals with income from salary, one house property, and other sources, while ITR-4 is for those with presumptive business income under Sections 44AD, 44ADA, or 44AE.

12. What are the benefits of filing ITR-4?

Benefits include simplified tax compliance, reduced need for detailed accounting, and faster processing of returns for those eligible for presumptive taxation.

13. What is the penalty for late filing of ITR-4?

Late filing of ITR-4 may incur a penalty of up to ₹5,000 under Section 234F, depending on when the return is filed.

14. Is it compulsory to file ITR-4 for 5 years if opted once?

No, it is not compulsory to file ITR-4 for five years if opted once. Taxpayers can switch between forms based on their income sources and eligibility each year.

15. What is the limit of exemption under ITR-4?

There is no specific exemption limit under ITR-4, but the total income should not exceed ₹50 lakh to be eligible for this form.

16. Which types of income can be shown in ITR-4?

Income from business or profession under presumptive taxation, salary, one house property, and other sources (excluding lottery winnings and horse racing income) can be shown in ITR-4.

17. What is the difference between 44AD and 44ADA?

Section 44AD applies to businesses with a turnover of up to ₹2 crore, presuming 8% of turnover as profit. Section 44ADA applies to specific professions, presuming 50% of gross receipts as profit if receipts are up to ₹75 lakh.

About the Author

RENU SURESH
Renu Suresh is a proficient writer with a knack for turning intricate legal concepts into clear, actionable advice. Her articles empower entrepreneurs by providing the knowledge they need to navigate the complexities of business laws, ensuring they can start and manage their businesses effectively.

Updated on: May 6th, 2025