ITR-4
What ITR-4 means, where you will meet it and what it means for your business.
DefinitionITR-4 (Sugam) is the simplified income tax return for resident individuals, HUFs and partnership firms declaring business or professional income under presumptive taxation, with total income up to ₹50 lakh.
ITR-4 is the short form for small businesses and freelancers who use Section 44AD (8% or 6% of turnover) or 44ADA (50% of receipts) and do not keep audited books. It takes turnover, presumptive profit, salary, one house property and other income, plus the deductions you claim, and computes tax in a few screens. It is not available if you have capital gains beyond simple cases, more than one house property, foreign assets, or income above ₹50 lakh, in which case you move to ITR-3. The due date is 31 July. You meet it every year if you are a consultant, shop owner or small trader on presumptive tax. What it means for you: keep proof of turnover and digital receipts, because the department can ask, and remember that opting out of 44AD locks you out for five years.