I am self employed professional looking to file income tax return for the first time. I am confused between ITR 4 and ITR 4s. Which is applicable for me?


#1

I am self employed professional looking to file income tax return for the first time. I am confused between ITR 4 and ITR 4s. Which is applicable for me?


#2

It is important to file your income tax returns using the correct form. As per the income tax department, ITR-4 form is made for tax assesses running a business or having a professional income. There is no minimum income you should be earning to file this return. ITR-4S or Sugam is a special case return form that is applicable for businesses where income is calculated on ‘presumptive method’. Unless you qualify to file ITR 4s, ITR 4 is the way to go for you. You can consult a tax consultant to find the right form for your personal case.


#3

I am freelance graphic designer. Which ITR form would be suitable for me?


#4

Any individual or HUF having income from business or professional needs to use ITR Form 4 to file their tax returns. You can use the ITR 4s (Sugam) form if your annual income calculation is by ‘presumptive method’. The best is to seek services of a professional tax consultant for your case but most likelihood form 4 is the right ITR form for you.


#5

tax exemption for self-employed business 1 core and 25 lakhs for self-employment professional.

I just read some India times portal. is this correct?

but my annual income is about 6-7 lakhs from online advertising. but the income already deducted tax from advertisers.

I want to file the return because of loan eligibility for income proof.

please suggest me.


#6

Can you share more details of what you are saying ? There has been no change in tax slab rates. The tax-free income remains at 2.5 Lakhs.


#7

Hi Nisha,

The Income Tax department has simplified ITR forms. ITR 4 and ITR 4S is now ITR 4 (Sugam). Individuals or HUFs with business or professional income with no foreign asset, income from one house property or capital gains can file for returns through ITR 4 (Sugam). The form is to be used for filing taxes using presumptive income method for business or profession.

When you are running a small business, maintaining accounts and estimating your profits and losses might be time-consuming and difficult. You may find it tough to estimate your income and how much tax you might have to pay. In order to ease your difficulties, the Income Tax Department has laid out provisions to help you can estimate your income based on your receipts. This is known as calculating income on a ‘presumptive basis’.

So, ITR 4 (Sugam) is used for such businesses. Using this method, your income will be 8% of your gross receipts. However, you will not be allowed to deduct any business expenses against the income. Section 44AD lists the businesses that are not eligible for calculating income using this method.

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BB Expert


#9

helpful post!
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