ITR-4 Form (Sugam): What is ITR-4 in Income Tax? 

ITR-4, or Income Tax Return-4, is the go-to form for professionals and small business owners looking to simplify their tax filing process. Tailored for those under the presumptive taxation scheme, ITR-4 form streamlines the complexities of reporting income from businesses or professions. Let’s move on to the simplified steps of filing ITR online and discover common mistakes to avoid a stress-free tax season.

What is ITR-4 form?

ITR-4 Form, also known as Sugam, is a simplified Income Tax Return form designed for individuals and Hindu Undivided Families (HUFs) with income from a profession or business. This form caters to those who opt for the presumptive taxation scheme, saving you from the intricate details of maintaining extensive financial records. 

Who should file ITR-4 form?

If you’re a freelancer, consultant, small business owner, or professional, and your turnover is below INR 2 crores, ITR-4 is your go-to form. It covers a wide range of professionals, including doctors, engineers, architects, and more. 

One of the standout features of ITR-4 form is the presumptive taxation scheme. This simplifies your tax calculation by assuming a fixed percentage of your total turnover as your income.

How to file ITR-4 form online?

Filing ITR online has become a convenient and efficient process. Here’s a step-by-step guide on how to file ITR-4 online: 

  • Step 1: Prepare necessary documents 
    • Gather all the relevant documents, including your PAN card, Aadhar card, Form 16, details of income from your profession or business, bank statements, and information on deductions. 
  • Step 2: Visit the official portal for Income Tax e-Filing 
    • Go to the official Income Tax e-Filing portal. If you don’t have an account, you’ll need to register. If you already have an account, log in using your User ID (which is your PAN), password, and captcha code. 
  • Step 3: Select the appropriate ITR Form 
    • Once logged in, select the relevant assessment year and ITR form. In this case, choose ITR-4 for professionals and businesses. 
  • Step 4: Download the applicable ITR-4 utility 
    • Under the ‘Downloads’ section, download the ITR-4 utility in either Excel or Java format, depending on your preference. 
  • Step 5: Fill in the required details 
    • Open the downloaded ITR-4 utility and fill in all the necessary details. Input your personal information, income details, deductions, and other relevant information. The utility typically provides drop-down menus and instructions to guide you through the process. 
  • Step 6: Validate and calculate tax 
    • Validate the filled details to ensure accuracy and completeness. Use the utility’s built-in features to calculate your tax liability based on the information provided. 
  • Step 7: Generate XML file 
    • Once you’ve filled in all the details and validated the information, generate the XML file using the utility. This file will be used for uploading your ITR on the e-Filing portal. 
  • Step 8: Log in to the portal and upload XML file 
    • Return to the e-Filing portal and log in. Under the ‘e-File’ section, select ‘Income Tax Return’ and choose the assessment year. Upload the file generated which is in XML format. 
  • Step 9: Verify your return 
    • After uploading the XML file, you will need to verify your return. You can do this through Electronic Verification Code (EVC) or Digital Signature Certificate (DSC). EVC can be generated through various methods, such as using Aadhar OTP or through Net Banking. 
  • Step 10: Receive acknowledgment 
ITR Filing service in Bangalore

What are the common mistakes to avoid while filing ITR-4 form?

When filing ITR-4 for professionals and businesses, steer clear of these common mistakes: 

  • Deduction Awareness:
    • Don’t overlook eligible deductions related to your profession or business; claiming them can significantly reduce taxable income. 
  • Updated Personal Information:
    • Keep personal details current to avoid communication issues with tax authorities; update address and contact information as needed. 
  • Accurate Income Reporting:
    • Report your professional or business income meticulously, verifying figures against financial records to prevent discrepancies. 
  • Form 26AS Verification:
    • Verify Form 26AS for accurate tax credits and TDS information, crucial for avoiding missed credits and ensuring correct tax calculations. 
  • Stay Informed About Tax Rule Changes:
    • Stay updated on tax rule changes to prevent non-compliance and seize opportunities for claiming deductions. 
  • Presumptive Income Accuracy:
    • If opting for presumptive taxation, ensure accurate calculation of presumptive income to avoid affecting your tax liability. 
  • Thorough Documentation: 
    • Maintain comprehensive documentation supporting income, expenses, and deductions to avoid challenges during tax assessments.
  • GST Compliance Check:
    • For businesses under GST, keep compliances up to date; discrepancies in GST filings can impact your ITR-4 filing. 
  • Timely Filing:
    • Avoid procrastination in filing ITR-4; filing well before the deadline ensures compliance and allows time to address errors. 
  • Consider Professional Guidance: 
    • If the tax filing process seems complex or if you have doubts, seeking professional advice minimizes the chances of errors in ITR-4 filing. 


In conclusion, when filing taxes, ITR-4 form enables professionals and small business owners to effortlessly navigate the complexities of taxation. Avoiding common mistakes and looking straightforward into the online filing process ensures a hassle-free tax season. 

Consult 24efiling seeking expert assistance for a smooth and hassle-free filing experience of your Income Tax Returns-4. 


1. Who can file ITR-4 form?

Individuals, HUFs, and Partnership firms should file ITR-4 if their total income includes business income under section 44AD or 44AE, income from a profession calculated under section 44ADA, or salary/pension with income up to INR 50 lakhs.

2. Can professionals use ITR-4 form? 

Yes, ITR-4 is applicable to professionals and businesses with income up to INR 50 lakh. It is particularly useful for those engaged in specified professions or businesses under the presumptive income scheme. 

3. What documents are required for filing ITR-4? 

Essential documents for filing ITR-4 form include PAN card, Aadhar card, bank statements, profit and loss statement, balance sheet, and details of business expenses. Individuals may also need to provide supporting documents for investments and deductions. 

4. Can ITR-4 be filed electronically?

Yes, ITR-4 form can be filed electronically on the official Income Tax Department website.

5. Can a freelancer or consultant use ITR-4? 

Yes, ITR-4 is suitable for freelancers, consultants, and professionals who fall within the prescribed income limits.

6. What is the presumptive income scheme under ITR-4? 

The presumptive income scheme under ITR-4 allows eligible taxpayers to declare their income at a predetermined rate, without the need for detailed accounting. This simplifies the tax calculation process for certain specified professions and businesses. 

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