# ITR-4 Filing > ITR-4 (Sugam) is the income tax return form for residents who declare business or professional income on a presumptive basis under sections 44AD, 44ADA or 44AE. It is meant for small traders, shopkeepers, freelancers, consultants and transporters with income up to ₹50 lakh. At ITR Filing Online (itrfilingonline.in), a tax expert prepares and files your ITR-4 Filing online within 1–2 working days.. URL: https://itrfilingonline.in/itr-4-filing Turnaround: 1–2 working days Contact: +91 99111 46650 (call/WhatsApp), go@itrfilingonline.in ## About ITR-4, also called Sugam, is the return form for residents who choose the presumptive taxation scheme. Under this scheme, instead of keeping detailed books and proving every expense, you declare profit as a fixed percentage of your turnover or receipts. It can be used by resident individuals, HUFs and partnership firms (other than LLPs) whose total income is up to ₹50 lakh. For FY 2025-26 (AY 2026-27), it is filed under the Income-tax Act, 1961. The three presumptive sections Section 44AD for small businesses: profit is 8% of turnover, or 6% of the part received digitally or through banks. The turnover limit is ₹2 crore, raised to ₹3 crore if cash receipts are not more than 5% of the total. Section 44ADA for notified professionals such as doctors, lawyers, engineers, architects, chartered accountants and technical consultants: profit is 50% of gross receipts. The limit is ₹50 lakh, or ₹75 lakh if cash receipts are within 5%. Section 44AE for owners of up to 10 goods vehicles: income is a fixed amount per vehicle per month. Who cannot use ITR-4 Non-residents and “not ordinarily resident” individuals Anyone with total income above ₹50 lakh Company directors, holders of unlisted shares, and people with foreign assets Anyone with capital gains other than section 112A gains up to ₹1.25 lakh Anyone who wants to declare profit below the presumptive rate Anyone with losses to carry forward Common mistakes we see Using 44ADA for a profession that is not notified for it Applying 6% to cash sales instead of 8% Turnover in the return not matching GST returns or AIS Leaving 44AD after one year without knowing the five-year consequence Missing the single advance tax instalment due by 15 March How our expert handles your ITR-4 Step 1: We check your residence, income level and nature of work. Step 2: We decide between 44AD, 44ADA and 44AE, or advise ITR-3. Step 3: We split receipts into digital and cash using bank statements. Step 4: We add salary, rent and interest, and compare both regimes. Step 5: We match with AIS and GST, share a summary and file after approval. A short example Suppose a doctor running a clinic received ₹40,00,000 in FY 2025-26, all through UPI, cards and bank transfers. Under section 44ADA, presumptive income is 50%, i.e. ₹20,00,000. Under the new regime, tax is ₹20,000 on ₹4–8 lakh, ₹40,000 on ₹8–12 lakh, ₹60,000 on ₹12–16 lakh and ₹80,000 on ₹16–20 lakh, totalling ₹2,00,000. Adding 4% cess of ₹8,000, total tax is ₹2,08,000. There is no standard deduction here because this is not salary. TDS deducted by hospitals or labs is set off against this amount, and the balance is paid as advance tax by 15 March. For a shopkeeper with turnover of ₹80 lakh, of which ₹60 lakh came digitally and ₹20 lakh in cash, presumptive income under 44AD is ₹3,60,000 plus ₹1,60,000, i.e. ₹5,20,000. That is ₹40,000 more than the ₹4,80,000 it would be if all sales had been digital, which shows why receiving payments through banks lowers the income you must declare. The same five-year rules apply, so we explain them before you opt in. ## What is covered - **Eligibility check**: Turnover limits, profession type and other income checked before choosing ITR-4. - **Presumptive income computation**: Correct percentage applied and higher declared income where it helps you. - **GST link**: Turnover in the return matched with your GST filings. - **Other income**: Salary, up to two house properties and interest income reported in the same return. ## Benefits - **No books needed**: Lower compliance when you qualify. - **Eligibility confirmed**: No defective-return notices. - **Fast filing**: Usually done within 1–2 working days. - **Advance tax clarity**: Presumptive taxpayers pay advance tax by 15 March — we remind you. ## Documents required - PAN and Aadhaar - AIS / Form 26AS - Total turnover / gross receipts for the year - Bank statements - GST returns (if registered) - Investment and deduction proofs ## Process 1. **Book & talk to an expert** — You request a callback or message us on WhatsApp. We understand your income sources in a 10-minute call. 2. **Share documents** — Send Form 16, AIS/26AS and proofs on WhatsApp or email. We tell you if anything is missing. 3. **We prepare your return** — We reconcile AIS and 26AS, compare the old and new regime and prepare the computation. 4. **You review & approve** — You see the final tax, refund and every figure before anything is filed. 5. **Filed & e-verified** — We file on the official portal and help you e-verify with Aadhaar OTP. You receive the ITR-V and computation. ## FAQs ### What is the turnover limit for section 44AD for FY 2025-26? The basic limit is ₹2 crore. It rises to ₹3 crore if cash receipts during the year are not more than 5% of total turnover. Profit must be declared at least at 8% of turnover, or 6% for the part received through banks or digital modes. Above these limits, presumptive tax is not available. ### Which professionals can use section 44ADA? Only professions listed in section 44AA(1) and those notified: legal, medical, engineering, architecture, accountancy, technical consultancy, interior decoration, film artists, company secretaries and information technology. A content writer, tutor or trainer is generally not covered, and may instead be able to use section 44AD. We check your work before choosing. ### Can I file ITR-4 if I also have a salary? Yes. ITR-4 allows salary or pension, house property income and interest income along with presumptive business or professional income, as long as total income stays within ₹50 lakh. The standard deduction applies to the salary portion. Form 16 details are entered in the salary schedule and presumptive income in the business schedule. ### What happens if I stop using section 44AD after one year? If you opt for 44AD and then, within the next five years, declare profit lower than the presumptive rate, you cannot use 44AD for the following five years. You must then keep books, and a tax audit applies if your income exceeds the basic exemption limit. This is why the choice needs thought. ### How is income calculated under section 44AE for truck owners? For a heavy goods vehicle, income is taken as ₹1,000 per tonne of gross vehicle weight for each month or part month it is owned. For other goods vehicles, it is ₹7,500 per vehicle per month. The scheme is available only if you owned no more than 10 goods vehicles at any time. ### Do I need GST registration to file ITR-4? No. GST registration and income tax filing are separate. GST registration depends on your turnover and type of supply, while ITR-4 depends on presumptive income rules. If you are registered, the turnover shown in ITR-4 should match your GST returns, because the department compares both and a gap may lead to a query. ### What interest applies if I miss advance tax under the presumptive scheme? Presumptive taxpayers must pay the full advance tax by 15 March. If you pay late or less than required, interest under section 234C is charged at 1% per month, and under section 234B at 1% per month on the shortfall until payment. Advance tax applies only when tax due is ₹10,000 or more. --- ITR Filing Online is a brand of TaxCaller India LLP (LLPIN AAQ-7388).