 has been launched by the Income Tax Department of India, making the procedure easier for professionals and small enterprises earning up to ₹50 lakhs.){kind=link}
Filing income tax returns can be a difficult undertaking for professionals such as physicians, architects, consultants, and independent contractors. Thankfully, ITR 4 Filing under the Presumptive Taxation Scheme (PTS) has been launched by the Income Tax Department of India, making the procedure easier for professionals and small enterprises earning up to ₹50 lakhs. However, how precisely can professionals quickly declare income using ITR 4 Filing? This is a thorough guide.
What Is Filing an ITR 4?
Individuals, Hindu Undivided Families (HUFs), and partnership firms (except from LLPs) that choose to use presumptive income schemes under Sections 44ADA, 44AD, or 44AE of the Income Tax Act must file ITR 4, popularly referred to as Sugam.
Without keeping thorough books of accounts, qualified professionals can use this strategy to declare 50% of their entire gross receipts as income and pay taxes accordingly.
ITR 4 Can Be Filed by Whom?
ITR 4 can be filed by professionals and small business owners if
They live in India.
In a fiscal year, their total income does not surpass ₹50 lakhs.
They work as physicians, attorneys, engineers, architects, accountants, technical consultants, and interior designers, among other occupations.
They choose to pay taxes under the Presumptive Taxation for Professionals (Section 44ADA).
Benefits of Professionals Filing ITR 4
1. Streamlined Procedure
Professionals can declare 50% of gross revenues as income under presumptive taxes, saving them the trouble of accurately calculating profit and loss.
2. No Need to Keep Extensive Records
Professionals can avoid maintaining complex records like balance sheets, profit-loss accounts, and ledgers by using ITR 4, in contrast to other ITR forms.
3. Cost and Time Effective
For consultants and freelancers who do not have a financial staff, the expedited and time-efficient filing process is cost-effective.
4. Reduced Prospects of Examination
The likelihood of receiving inspection notices from the IT Department is reduced because the plan is made to be transparent and straightforward.
5. Qualification for Waiver of Advance Tax
In order to avoid quarterly advance tax payments, professionals who declare income under Section 44ADA must pay the whole tax amount by March 15 of the fiscal year.
A Comprehensive Guide to Simple ITR 4 Filing
Gather all required paperwork, including income information, bank statements, Form 26AS, Aadhaar, and PAN.
Add together all of your professional earnings for the fiscal year to determine your gross receipts.
Use the 50% Rule (Section 44ADA), which states that 50% of total earnings must be reported as income. If choosing this plan, no deductions are permitted under Chapter VI-A.
Use CA Help or Authorised Platforms: For supervised help, use government sites or reliable third-party platforms such as Karsaathi.in.
Submit and E-Verify: Remember to use EVC, nett banking, or Aadhaar OTP to confirm your ITR.
Avoid these common mistakes when declaring income on the incorrect ITR form.
failing to disclose exempt income, such as interest on savings accounts.
submitting without remembering to e-verify.
not looking up TDS data on Form 26AS.
penalty for missing the filing deadline.
In conclusion
Professionals can declare their income under the presumptive taxation scheme in a straightforward and effective way by filing an ITR 4. It saves time, minimises errors, and reduces paperwork, making it ideal for independent contractors and small business owners. Professionals can maximise ITR 4 and guarantee compliance stress-free by employing trustworthy platforms like Karsaathi.in, comprehending eligibility, and attentively following the methods.