ITR- 4 Form or Sugam Form

  • Blog|Income Tax|
  • 3 Min Read
  • By Taxmann
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  • Last Updated on 11 January, 2021
Individuals, HUFs or firms having presumptive income from business or profession under section 44AD, 44ADA or 44AE can file return in Form ITR 4 (Sugam). This form cannot be used to file the return in following circumstances:
a) Person eligible to opt for presumptive taxation scheme under section 44AD/44ADA/44AE, but he doesn’t opt for same
b) He has earned following incomes during the year:
  • Income from speculative business
  • Income from agency business or commission or brokerage
  • Dividend income exceeding Rs. 10,00,000
  • Income from lottery or horse race
c) The assessee wants to claim relief under section 90/90A/91
d) The assessee has any asset outside India or income from any source outside India

What is presumptive income tax regime?

With a view to provide relief to the small taxpayers from the tedious compliance of tax procedures and maintenance of books of accounts, the Government has prescribed a scheme of Presumptive taxation wherein the small taxpayers are not required to maintain any books of accounts and profit is ascertained by way of certain percentage of revenue. The following table shows the rates under presumptive taxation scheme:


Source of Income


Presumptive Income

Section 44AD

From Business

Gross Turnover up to Rs. 2 crores per annum

a) 8% of turnover

b) 6% of turnover*

Section 44ADA

From Specified Professions

Gross Receipts up to Rs. 50 lakhs per annum

50% of value of receipts

Section 44AE

From Goods Transportation Business

Assessee owns up to 10 vehicles at any time during the year

10,000/7500 per vehicle per month

* The presumptive income shall be calculated at concessional rate of 6% only in respect of those sum which are received by way of account payee cheque, NEFT, RTGS, etc.

New ITR Forms for AY 2018-19:

Central Board of Direct Taxes (CBDT) has notified new ITR forms for the Assessment Year 2018-19 for filing the return of income of Financial Year 2017-18. Certain schedules have been added/ modified in Form ITR-4 in comparison to last year. Major changes are:

1. Reporting of information relating to the GST Number and gross receipt as per GST return filed.
2. Taxpayers opting for Presumptive scheme are required to furnish more details about its assets and liabilities as on the last date of financial year.
3. Levy of late filing fees under Section 234F if return has been furnished belatedly. The late filing fees shall be as under:



Amount of Late Fee

Income up to 5 Lacs

In all cases where the assessee is required to file return

Rs. 1,000/-

Income ≥ 5 Lacs

If return filed on or before 31.12.2018

Rs. 5,000/-

In any other case

Rs. 10,000/-

4. The assessee is required to provide detailed calculation in case of house property.
5. Details of foreign bank account can be entered by the non-residents in ITR form.
6. Removal of ‘gender’ from personal information.

Provisions for furnishing return of income in Form ITR-4 for AY 2018-19:

a) E-filing of return is mandatory. However, in case of resident individual who is a super senior citizen, (i.e. individual at the age of 80 or more during the previous year) and in case where the income of individual/HUF/Firm doesn’t exceed Rs. 5 Lakh, the income tax return in Form ITR- 4 can be filed in physical / paper form also. 
b) For the purpose of verification of return of income in Form ITR- 4, Digital Signature is not mandatory and the following options are also available for verification: 
  • e-verification through Aadhar OTP
  • e-verification through net banking if the bank account is linked with  PAN
  • physical verification by sending the signed ITR-V through post at CPC, Bengaluru
  • e-verification through EVC generation

Author Bio: Radhika Daga is a CA Final student. Connect with her on Linkedin  

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