Glossary
ITR-4
ITR-4
Income Tax Return Form 4 (Sugam) ITR-4 is a simplified tax form for individuals, HUFs, and partnership firms opting for the presumptive taxation scheme. It allows eligible taxpayers to declare income at a prescribed percentage of their gross receipts, eliminating the need to maintain detailed books of accounts.
Where it appears in practice
It matters for small businesses and professionals aiming to reduce compliance burdens, provided their total turnover is below ₹3 Crores for business [VERIFY threshold] or ₹75 Lakhs for professionals [VERIFY threshold] under the presumptive scheme.
A worked example
A retail shop owner with an annual turnover of ₹80 Lakhs opts for Section 44AD and declares an 8% profit margin (₹6.4 Lakhs), filing ITR-4 without maintaining detailed ledgers.
Related terms
- Presumptive Taxation
- ITR-3
- Section 44AD
Let the practice handle it
This term sits inside real compliance work — returns, filings, and deadlines. That work is one of the services the practice runs end to end.
Income Tax Return Filing