Simplified tax filing for small businesses and professionals under presumptive taxation schemes
ITR-4, also known as Sugam, is designed for small businesses and professionals who opt for the presumptive income taxation scheme under sections 44AD, 44ADA, and 44AE of the Income Tax Act.
With CredFill's ITR-4 filing service, you can enjoy the benefits of simplified tax filing without detailed books of accounts while ensuring compliance with all tax regulations. Our experts handle your ITR-4 filing with precision at just ₹799.
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ITR-4 covers three different presumptive taxation schemes under the Income Tax Act
For small businesses with turnover/gross receipts not exceeding ₹2 crore. Income is presumed at 8% of turnover (6% for digital transactions), without requiring detailed books of accounts.
For professionals like doctors, lawyers, architects, etc., with gross receipts not exceeding ₹50 lakhs. Income is presumed at 50% of gross receipts, simplifying tax calculations.
For transport business owners operating goods carriages. Income is presumed at a flat rate per vehicle per month, based on the vehicle's weight capacity.
Understanding who should file ITR-4 Sugam
Why small businesses and professionals choose ITR-4
No need to maintain detailed books of accounts or get them audited. Basic records of turnover/receipts are sufficient.
Filing under presumptive schemes saves significant time in tax preparation and compliance compared to regular business taxation.
Reduced accounting and tax compliance costs as there's no need for complex accounting systems or audit procedures.
Why small businesses and professionals choose ITR-4
No need to maintain detailed books of accounts or get them audited. Basic records of turnover/receipts are sufficient.
Filing under presumptive schemes saves significant time in tax preparation and compliance compared to regular business taxation.
Reduced accounting and tax compliance costs as there's no need for complex accounting systems or audit procedures.
Fixed percentage of income calculation provides certainty about tax liability, making financial planning easier.
Simple steps to file your ITR-4 with CredFill
Book your ITR-4 filing service and share your business turnover/gross receipts details along with other income information.
Our experts verify your turnover/receipts documents and other income proofs to ensure accurate filing.
Review your tax computation with our expert and get clarity on presumptive taxation benefits for your specific situation.
We submit your ITR-4 electronically and provide you with acknowledgment and all necessary documentation.
Comprehensive service at an affordable price
Common questions about ITR-4 and presumptive taxation
Presumptive taxation is a simplified method where your business income is calculated as a fixed percentage of your turnover/gross receipts, without requiring detailed books of accounts. The main benefits include simplified bookkeeping, reduced compliance costs, time savings, and certainty in tax calculation. Small businesses, professionals, and transport operators can focus on their core activities instead of complex accounting procedures.
Yes, you can claim deductions under Section 80C and other applicable sections like 80D (health insurance), 80G (donations), etc., while filing ITR-4. These deductions are available in addition to the presumptive income calculation. Your total taxable income is reduced by these deductions before calculating final tax liability. Our experts will help you identify and claim all eligible deductions during the filing process.
If your turnover exceeds the limits (₹2 crore for business, ₹50 lakhs for professionals, or more than 10 vehicles for transport operators), you cannot use presumptive taxation schemes. You would need to maintain regular books of accounts, get them audited if applicable, and file ITR-3 instead of ITR-4. If you're approaching these limits, our experts can advise you on the transition and help you prepare for the additional compliance requirements.
While detailed books of accounts are not required under presumptive taxation, you should maintain basic records of your turnover/gross receipts, including bank statements, invoices, and receipts. These records are important to substantiate your declared turnover if there's a tax inquiry. Additionally, if you claim that your actual profit is lower than the presumed percentage (which requires maintaining books of accounts), you would need proper accounting records to support this claim.
Yes, you can switch between presumptive taxation and regular taxation. However, if you opt out of presumptive taxation after choosing it for any year, you cannot switch back to presumptive taxation for the next five assessment years. This is an important consideration, and our tax experts can help you evaluate which option is better for your specific situation before making this decision.
Let our experts handle your presumptive taxation filing with ease and accuracy. Book now and focus on growing your business.
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