Who can file ITR — 4 (SUGAM)? What documents do you need to file ITR-4?

The taxpayers who have opted for the presumptive taxation scheme under Section 44AD, 44ADA or Section 44AE of the Income Tax Act, file for ITR-4 (SUGAM) form.

However, if the turnover of the mentioned business exceeds ₹2 crores or ₹50 lakhs in case of professionals, the taxpayer will have to file ITR-3.

One thing to note here is that up until FY 2018–19, if your total income was less than the basic exemption limit, it was not compulsory to file ITR. But, Budget 2019 inserted the seventh proviso to Section 139(1). As per this new provision, if a taxpayer has entered into high-value transactions, it is mandatory to file the ITR even if the total income does not exceed the basic exemption limit.
The high-value transactions can be either of the following:

1. The taxpayer has deposited more than ₹1 Cr in a current account
2. The taxpayer has incurred foreign travel expense of more than ₹2 lacs
3. Or, the taxpayer has incurred electricity expense of more than ₹1 lac

Who can file ITR-4 (SUGAM)?

Individual/HUF/Partnership firm whose total income includes following can use ITR-4:

• Income from Business eligible for Presumptive taxation scheme
• Individuals with income up to ₹50 Lakh
• Income from Profession or Freelancing eligible for Presumptive taxation scheme
• Income from Salary — it is simply the paycheque you get every month from your employer / Income from Pension — The amount paid by an employer after retirement on a periodic basis for the services rendered by him during his job.
• Income from One House Property (excluding cases where losses are brought forward from the previous year)
• Income from Other Sources (Excluding Winning from Lottery and Race Horses)
• HUFs and Non-LLP firms with incomes up to ₹50 Lakh

Sample ITR-4 Form for AY 2020–21

Download Sample from Income Tax Department

You can download income tax utility from here.

Documents needed to file ITR-4

We’ll be dividing this checklist into 2 parts: Part 1 will include a list of essential documents whereas Part 2 will have income-specific documents needed.

Part 1: Essential Documents
Here is a list of documents that are most essential to File ITR-4:

1. PAN (Permanent Account Number)
2. Bank account details
3. TDS certificates
4. Counterfoils of taxes paid
5. Details of original return if filing revised return
6. Details of notice if filing in response to the notice
7. Electricity bill (In case it exceeds ₹1 Lakh)
8. Travel expenses (In case it exceeds ₹2 Lakh)
9. Deposits in Bank (₹1 Crore or above)

Part 2: Income-specific Documents
Based on your type of income, you’ll need the following documents:

• Salary income

1. Form-16/ Salary slips received from your employer
2. Pension statement/passbook.

• House/Property Income

1. Address of the property
2. Co­-owner details in case the property is co­owned
3. In case of house/property — loan ­ Interest certificates/repayment certificate from bank
4. In case of let out property — Rent agreement

• Business / Profession

1. Profit & Loss statement
2. Balance Sheet
3. Supporting documents for expenses incurred
4. Bank account statement/Passbook
5. Cash register
6. Any other documents required to maintain the books of accounts of business & profession

• Other sources

1. Savings/current account statements/Passbook
2. Interest certificates for deposits/bonds/NSC
3. PPF account statement/Passbook
4. Dividend warrants/counterfoils
5. Rent agreement in case of let out machinery
6. Details about receipts of any other incomes

• If you’re eligible for any Tax Breaks, you may need to acquire the relevant documents from the list:

1. PPF account statement/Passbook
2. Fixed deposit certificates/statements
3. Mutual fund NAV statements
4. ELSS/ULIP/NSC investment details
5. Life insurance premium receipts
6. Medical insurance premium receipts
7. Preventive health checkup details
8. Pension fund/ National pension scheme statement
9. House/property loan interest certificate/repayment statement
10. Education loan interest certificate/repayment statement
11. Tuition fees receipts
12. Donation receipts
13. Certificate from specified medical authorities in case of disability
14. Receipts/proof of any other tax saving investment/contributions