ITR-4 (Sugam) Filing
Presumptive taxation for small businesses (44AD/44ADA)
Simplified presumptive-scheme filing for small businesses and professionals under sections 44AD, 44ADA and 44AE — minimum paperwork, maximum savings.
What's included
- Presumptive income computation
- Eligibility check for 44AD/44ADA
- GST turnover reconciliation
- E-verification support
Understanding ITR-4 (Sugam) Filing
ITR-4, also called Sugam, is the return form for taxpayers opting for presumptive taxation under Sections 44AD, 44ADA or 44AE of the Income-tax Act, 1961. Instead of maintaining detailed books, you declare income at a prescribed percentage — 8% of turnover for businesses (6% for digital receipts) under 44AD, 50% of gross receipts for specified professionals under 44ADA, and fixed per-vehicle amounts for transporters under 44AE. It is available to resident individuals, HUFs and partnership firms (not LLPs) with total income up to ₹50 lakh.
Presumptive taxation is one of the best deals in the Act for small businesses and independent professionals: no books of account, no tax audit, and a one-page-simple compliance life. The limits are generous too — 44AD covers turnover up to ₹2 crore (₹3 crore if at least 95% of receipts are digital) and 44ADA covers professional receipts up to ₹50 lakh (₹75 lakh with 95% digital receipts). The catch is choosing correctly: opt out of 44AD after opting in, and you are locked out for 5 years and may face audit requirements.
Finscape files your ITR-4 for ₹1,499 in 1-2 working days. We verify you actually qualify, check whether presumptive or regular taxation saves you more, reconcile your receipts with AIS and GST data, and file only after you approve the computation. For AY 2026-27, the due date is 31 July 2026.
Who needs this?
Freelancers and consultants (44ADA)
Software developers, designers, doctors, lawyers, architects and other specified professionals with gross receipts up to ₹50 lakh (₹75 lakh if 95% digital).
Small business owners (44AD)
Traders, retailers, contractors and service businesses with turnover up to ₹2 crore (₹3 crore if 95% digital receipts).
Transporters (44AE)
Owners of up to 10 goods carriages declaring fixed income per vehicle per month.
Commission-free gig professionals
Trainers, content creators and independent contractors billing clients directly, with TDS under 194J or 194C.
Small partnership firms
Registered partnership firms (not LLPs) eligible for 44AD or 44ADA and income within ₹50 lakh.
When this is NOT the right fit
| Your situation | What applies instead |
|---|---|
| ✕You have capital gains or more than two house properties | ITR-4 cannot report capital gains beyond 112A LTCG of ₹1.25 lakh; you would need ITR-3 with presumptive schedules. |
| ✕You are an NRI or a company director, or hold unlisted shares | ITR-4 is limited to residents without these disclosures; ITR-3 handles presumptive income alongside them. |
| ✕Your total income exceeds ₹50 lakh | The Sugam form is capped at ₹50 lakh total income regardless of presumptive eligibility. |
| ✕You run an agency, commission or brokerage business | Section 44AD specifically excludes commission and brokerage income; regular ITR-3 filing applies. |
| ✕You are an LLP | LLPs are excluded from presumptive schemes entirely and must file ITR-5. |
Not sure which applies to you? Message us — we'll point you to the right service in minutes, free.
Documents you'll need — and why
PAN and Aadhaar
Mandatory identifiers; Aadhaar linkage is needed for OTP-based e-verification.
Bank statements for FY 2025-26
Establishes gross receipts and the digital-receipts percentage that decides your 6% or 8% rate.
Invoice summary or receipts register
Confirms turnover and helps us match what clients reported against your PAN.
Form 26AS and AIS
TDS deducted by clients under 194J/194C must be fully claimed — this is where refunds come from.
GST returns, if registered
GST turnover and ITR turnover must reconcile; mismatches are a common notice trigger.
Investment and insurance proofs
80C, 80D and NPS deductions still apply under the old regime and can cut your tax meaningfully.
Vehicle registration certificates (44AE cases)
Tonnage and ownership months determine the presumptive income per goods carriage.
How it works, step by step
- 1
Eligibility check
Same dayWe confirm your activity qualifies under 44AD, 44ADA or 44AE and flag anything that would push you to ITR-3.
- 2
Receipts and TDS reconciliation
Same dayGross receipts are tallied from bank statements and matched with AIS and Form 26AS so no TDS credit is missed.
- 3
Computation and regime comparison
1 dayWe compute presumptive income, compare old vs new regime, and check whether regular ITR-3 filing would actually tax you less.
- 4
Draft approval and filing
Same dayYou approve a clear computation; we file the return and guide you through Aadhaar OTP e-verification.
- 5
Acknowledgement and refund tracking
Refunds typically 2-4 weeksITR-V and computation are shared, and we monitor your refund until credited.
Due dates to know
ITR-4 due date (AY 2026-27)
31 July 2026
Presumptive taxpayers are not subject to audit, so the July deadline applies.
Belated or revised return
31 December 2026
With Section 234F late fee if the original date is missed.
Advance tax for presumptive taxpayers
15 March 2026 (single instalment)
44AD/44ADA taxpayers can pay 100% of advance tax in one March instalment.
What non-compliance costs
Filing after 31 July 2026
Late fee under Section 234F: ₹1,000 if income is up to ₹5 lakh, ₹5,000 otherwise, plus 234A interest at 1% per month.
Missing the single March advance tax instalment
Interest under Section 234C at 1% per month on the shortfall.
Opting out of 44AD after opting in
Locked out of 44AD for the next 5 assessment years, with books and possible audit under Section 44AB if income exceeds the basic exemption.
Declaring below presumptive rates without audit
Claiming profits below 8%/6% or 50% requires books of account and a tax audit; skipping it attracts Section 271B penalty up to ₹1,50,000.
Why doing this right pays off
No books, no audit
Presumptive taxation legally frees you from maintaining detailed accounts and from tax audit — we make sure you stay inside those boundaries.
The 6% digital rate applied correctly
If your receipts are through bank, UPI or cards, we apply 6% instead of 8% under 44AD — a 25% reduction in deemed profit many filers miss.
Refunds of client TDS
Clients typically deduct 10% TDS under 194J; presumptive tax is often lower, so filing correctly frequently produces a healthy refund.
Presumptive vs regular comparison
If your real expenses are high, we tell you honestly when ITR-3 with books would tax you less than the 50% deemed profit.
5-year lock-in protection
We plan your opt-in and opt-out decisions so a single hasty year does not lock you out of 44AD benefits for five.
Common DIY mistakes we see
- Declaring 50% under 44ADA when the profession is not a specified one under Section 44AA — support services and many gig roles belong under 44AD instead.
- Ignoring the digital receipts benefit and paying tax on 8% when 6% was available for bank and UPI collections.
- Reporting turnover lower than what GST returns or AIS show, a near-guaranteed mismatch notice.
- Switching between presumptive and regular schemes casually, triggering the 5-year 44AD lock-out without realising it.
- Assuming presumptive tax means no advance tax — the single 15 March instalment is still mandatory.
Frequently asked questions
Under 44ADA, only 50% — ₹15 lakh — is treated as taxable income, before deductions and regime benefits. Under the new regime, tax would be roughly ₹1 lakh, and clients' 10% TDS of about ₹3 lakh usually means a substantial refund when you file.
Not sure if this is the right service?
Message us on WhatsApp — a real expert replies, usually within minutes.
All-inclusive professional fee. Government fees (if any) extra at actuals.
Grab a coupon below — it applies at checkout.
🎁 Offers on this service
10% off up to ₹500
You save ₹149 → pay only ₹1,350
ITR due date — AY 2026-27 (non-audit)
31 July 2026 — book now and beat the last-minute rush.