ITR 4S Sugum Form is the return form for those taxpayers who has opted for presumptive taxation income scheme as per section 44AD, Section 44ADA and Section 44AE and whose income is not more than Rs. 50 lakh. Section 44AD and 44AE related to business but section 44ADA related to the profession.
Basic of Sugam ITR 4S?
- ITR 4s is the return form for those taxpayers who have opted for a presumptive income scheme as per section 44AD, Section 44ADA, and Section 44AE related to business and profession.
- It is applicable only if the turnover mentioned above does not exceed Rs. 2 crores and it is between Nil to 2 CR.
- If the turnover exceeds Rs. 2 crores, the taxpayer has not required to file ITR 4S.
For Whom Sugam ITR 4S is applicable?
- PARTNERSHIP FIRM( EXCLUDING Limited Liability Partnership)
Whose total income includes-
- Business income u/s 44AD OR 44AE.
- Income from profession u/s 44ADA.
- Salary/pension having income up to Rs. 50 lakh.
- Income from not more than one house property having income up to Rs. 50 lakh.( excluding b/f losses)
- Income from other sources having income up to Rs. 50 lakh.( excluding winning from lottery and race horses)
Note– Freelancer engaged in above business can also opt for this scheme if their gross receipts don’t exceed Rs. 50 lakhs
For Whom Sugam ITR 4S is not applicable?
- An individual having income form salary, house property or other sources above Rs. 50 lakh.
- An individual who is either a director in a company and has invested in unlisted equity shares.
- An individual, HUF or partnership firm is required to audited under IT ACT, 1961.
- Individual having income under capital gain, more than one house property, income from winning from lottery, race horses.
- Income taxable at special rates u/s 115BBDA or Section 115BBE.
- Agriculture income in excess of Rs. 5000.
- Person who has claimed of loss, deduction, relief, tax credit etc. of following nature-
- Any b/f loss
- Loss under income from other sources.
- Any relief u/s 90,90A OR 91.
- Any claim of deduction u/s 57 other then family pension.
Structure of Sugam ITR 4S FORM?
Part A: General information.
Part B: Gross total income form the following head of income namely-
- Income from salary
- Income from one house property
- Income from other sources
- Income from business & profession.
Part C: Deduction and total taxable income
Part D: Tax computation and tax status with below schedule-
- Schedule BP: Details of income from business with GST details
- Schedule IT: statement of payment of advance tax in a single installment and self-assessment tax.
- Schedule TCS: statement of tax collected at sources.
- Schedule TDS1 & 2: statement of tax deducted at source on salary and other than salary.
- Schedule D1: statement of Investments or deposits or payments in extended from 1st April 2020 to 31st July 2020.
Offline return filling cases of ITR 4S?
- Individual having age of 80 year or more.
- Income of individual is less than Rs. 5 lakh and who has not claimed any refund.
Manner of filling return from?
- Physical paper from.
- Electronically using digital signature.
- Aadhar Verification.
Presumptive income & its taxation benefit under section 44AD?
- In the small business the calculation of earning and maintain daily account not possible so they have assumed income based on your receipt called presumptive scheme is a benefit to pay low tax.
- Net income is estimated to be 8% of the Gross receipt of your business. But if gross receipt is made through digital mode of payment eg. Account payee, Cheque, DD OR NET Banking then net income is estimated to be 6% of gross receipt.
- Don’t have to maintain books of accounts of this business.
- Advance tax in a single installment by 15th march of the year.
Characteristic for the scheme of section 44AD?
- Gross receipt or turnover of business should be less than Rs. 2 crores.
- Only to individual, HUF or partnership firm not company.
- Ordinary Resident in India.
- Has not claimed deduction u/s 10, 10A, 10B, 10BA, 80HH to 80RRB for the availment of this scheme.
What happen when assesse declare income higher or lower than 8% of gross receipts?
The taxpayer can voluntarily declare a higher income and pay tax on it.
In case the taxpayer declare income lower than 8 % of gross receipt than he shall have to maintain books of accounts and get them audited.
Presumptive taxation scheme under section 44AE?
- Business of plying, leasing or hiring goods carriage.
- Can have max of 10 goods carriage at any time during the year.
- Individual, HUF, Company or Partnership firm anyone can avail this scheme.
Characteristic of the scheme of section 44AE?
- Net taxable income form a good vehicle will be Rs. 7500 per month for each vehicle per month or part thereof during the FY.( part thereof will be consider for full month)
- Heavy goods vehicle with weight of (> 12000kg) and light goods vehicle (<= 12000 kg).
- Advance tax in a single installment by 15th march.
- Not allow any expenditure against this income.
Presumptive taxation scheme under section 44ADA?
- Benefit of this section is available to professionals also.
- Gross receipt of the profession does not exceed Rs. 50 lakh.
- Tax rate– 50% of total gross receipt for the year.
- Person engaged in following business can opt for this scheme-
- Legal, architectural etc.
Frequently asked questions?
A. What happen when the turnover exceed Rs 2 cr.?
hen turnover exceed 2 crore in a previous year he is not applicable to file Sugam ITR 4S either he is required to audit his books of accounts under IT ACT, 1961.
B. Can anyone file this form online?
No, the return from can be file online by an individual who is age of 80 year or more and having income less than Rs. 5 lakh and don’t claim any refund.
C. If a person is doing any business but not maintain accounts, what is the requirement applicable to him?
Can file income tax return on presumptive basis when total income does not exceed Rs. 2 cr.
D. If I am opting presumptive scheme so can I claim deduction of other expenditure and depreciation?
No, if a person is paying tax @ 8% as per section 44AD, cannot claim dep or any other expenditure because 8% is already a release scheme for taxpayer.
E. IF a person opt presumptive taxation scheme in 2019-20 and normal taxation scheme in the next previous year, can it possible?
If a person once opt for presumptive scheme once, he has to maintain books of accounts for 5 years and also required to file his return for 5 consecutive year.
Filling out the acknowledgement
Where the Return Form is furnished in the manner mentioned at 5(iv), the assessee should print out two copies of Form ITR-V. One copy of ITR-V, duly signed by the assessee, has to be sent by ordinary post to Post Bag No. 1, Electronic City Office, Bengaluru–560100 (Karnataka). The other copy may be retained by the assessee for his record.
Only one copy of this Return Form is required to be filed. Where the Return Form is furnished in the manner mentioned at 5(i), the acknowledgement should be duly filled in ITR-V.
Author: CA Rupali Agarwal