Know all about Form ITR-1 (Sahaj)
and check if you are eligible to file it. You can
also file ITR-1 easily using an online platform or
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Under Sections 44AD and 44AE of the Income Tax Act, Form ITR-4S is for taxpayers opting for the presumptive income scheme. If the business turnover crosses ₹2 crore, ITR-4 must be filed instead. The due date for filing is 31st July each year.
To qualify:
Gross receipts or sales must be below ₹2 crore.
You must be an Indian resident.
Applicable for individuals, HUFs, or partnership firms—not companies.
Who Should File ITR Form 4
Small business owners without formal books of accounts, such as online sellers, merchants, wholesalers, and manufacturers, must file Form ITR-4.
Freelancers like bloggers, vloggers, and content creators, as well as professionals such as CAs, doctors, lawyers, and engineers, are also required to file this form.
Additionally, individuals earning a salary along with side income from freelancing, F&O trading, cryptocurrency, commodities, or forex must file Form ITR-4.
Documents Required to File ITR-4
Form 26AS & AIS
Form 16 / 16A
Bank statements
Housing loan interest certificate
Donation receipts
Rental agreement
Investment proofs
Presumptive Taxation Scheme
Small businesses may lack resources to maintain detailed accounts and calculate actual profits. To simplify this, the Income Tax Department allows income estimation based on gross receipts under the presumptive scheme, where tax is paid on an estimated basis.
Key Sections:
Section 44AD: Applies to individuals and Hindu Undivided Families (HUF) engaged in specified businesses, where income is presumed based on turnover.
Section 44ADA: For Indian residents practicing professions listed in Section 44AA(1), income is calculated on an estimated basis with certain conditions.
Section 44AE: For individuals, HUFs, or others (resident or non-resident) engaged in goods carriage business, owning no more than 10 vehicles during the year; income is presumed as per this section.
Steps to File ITR-4 Form
Step 1: Visit Official Website – Log in using your credentials on the Income Tax website. Click ‘Start Filing’ to begin. Link your PAN and add yourself as a client.
Step 2: Fill in Details – Complete personal and salary details. Verify via OTP. You’ll see pre-filled data. Under ‘Revenue Sources,’ enter business income details.
Step 3: Input Income Details – Add income from business or profession under Sections 44AD, 44ADA, or 44AE.
Step 4: Continue the Process – Enter details under 'No Books of Account' if applicable. Provide audit info if needed. Also add income from salary, house property, capital gains, or other sources.
Step 5: Add Deductions – Select ‘Deductions’ and review eligible investments like LIC, PPF. Claim tax benefits such as Section 80TTA (up to ₹10,000 on savings account interest).
Step 6: File Disclosure Details – Fill relevant sections under ‘Other Disclosures.’ For net income above ₹50 lakh, fill Schedule AL with assets and liabilities not listed on your balance sheet. NRIs or 'resident but not ordinarily residents' report only Indian assets.
Step 7: Select Tax Regime – View tax summary. Choose either old or new regime (if new was selected earlier, it can’t be changed yearly for business income). Read terms carefully before e-filing.
Step 8: Submit Self-Declaration – Confirm details in a self-declaration. Authorise the provided info and click ‘Proceed to e-File.’
Step 9: File Your ITR – On payment completion, receive an ITR filing acknowledgement number. Your return is now successfully submitted to the tax department.
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Recent Update
Important Changes in ITR-4 Form for Assessment Year (AY) 2025–26:
If Form 10-IE was submitted in FY 2023–24, taxpayers must confirm whether they chose the new tax regime under Section 115BAC. They must also state if they intend to continue with the new regime for FY 2024–25.
Resident individuals can file ITR-4 only if they have a deferred tax liability on ESOPs.
Dividend income must be reported quarterly.
Schedule DI, which was relevant for AY 2021–22, continues to remain removed for AY 2025–26.
FAQs on ITR Form 4 Sugam
ITR 4 can be filed by individuals, Hindu Undivided Families (HUFs), and partnership firms (excluding LLPs) who have opted for the presumptive taxation scheme under Sections 44AD, 44ADA, or 44AE and whose total income does not exceed ₹50 lakh.
It depends on your income type. If you have regular business or professional income and maintain detailed books of accounts, use ITR 3. If you have opted for presumptive taxation and want to declare income on an estimated basis, choose ITR 4 for simplicity.
No, capital gains cannot be reported in ITR 4. If you have any capital gains income, you need to file ITR 3 or other appropriate forms.