Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
ITR-4 for presumptive income
ITR-4 (Sugam) is the return designed for taxpayers declaring income on a presumptive basis — whether 44ADA (professionals) or 44AD (businesses). It’s short, because you only report your gross receipts and the presumed 50% income, plus salary and one house property if any.
When ITR-4 won't do
ITR-4 has limits: you can’t use it if you have capital gains, more than one house property, foreign income or assets, or are a company director / hold unlisted shares. In those cases you file ITR-3 instead, still declaring the 44ADA income within it. Check the current ITR-4 eligibility before filing.
A worked example
Example: a doctor with only professional receipts and a savings account files ITR-4 under 44ADA — quick and simple. Another doctor who also sold shares at a gain can’t use ITR-4 (capital gains), so she files ITR-3, still showing her practice income presumptively. Using the wrong form invites a defective-return notice. Our team can pick and file the right form.