ITR-4 (Sugam) Filing Guide for Indian Freelancers & Small Businesses

📘 Step-by-Step Guide to File ITR-4 (Sugam) in India

This guide is made for small businesses, freelancers, and professionals like Ravi — a graphic designer using presumptive taxation (44ADA).

Who Can File ITR-4?
✅ Individuals, HUFs, Firms (non-LLP)
✅ Income ≤ ₹50 Lakhs
✅ Using Presumptive Taxation:
- 44AD: Small businesses
- 44ADA: Freelancers / Professionals (lawyers, architects, consultants)
- 44AE: Goods transport business

📂 Required Documents

Document	Description
PAN & Aadhaar	Mandatory for login and e-verification
Bank Statements	To calculate turnover or professional receipts
Invoice Summary	Details of sales/services billed
Investment Proofs	80C, 80D deductions if claiming
Form 26AS / AIS	Check TDS and reported income

📝 Steps to File ITR-4 Online

Step 1: Login

• Visit: https://www.incometax.gov.in
• Login using PAN, password
• New user? Click Register and complete KYC

Step 2: Start ITR Filing

1. Go to e-File → Income Tax Return
2. Select AY 2024–25, filing type: Individual
3. Choose ITR Form: ITR-4 (Sugam)

Step 3: Enter Business/Professional Income

• Under Section 44AD or 44ADA, you enter gross receipts
• System calculates presumptive income:
  • 44AD: 8% (cash) / 6% (digital) of turnover
  • 44ADA: 50% of professional receipts
• No need to maintain books of accounts

Step 4: Add Other Income (if any)

• Include interest from FDs or savings account
• Declare rental income (if any) under House Property

Step 5: Claim Deductions

Section	Deduction
80C	LIC, ELSS, PPF, Home Loan Principal
80D	Health Insurance Premium
80TTA	Interest on Savings Account (up to ₹10,000)

Step 6: Review & Submit

• Check tax calculation and refund status
• Ensure TDS matches 26AS or AIS
• Click Submit and proceed to verification

Step 7: E-Verify ITR

• Use Aadhaar OTP, net banking, or bank EVC
• Filing is complete once e-verification is successful

✅ Benefits of ITR-4 & Presumptive Scheme

• No books of account needed
• Easy return filing with minimal data
• Useful for loan applications and business credibility

Pro Tip:
Even with no tax payable, file ITR to avoid notices and stay compliant. Good recordkeeping helps with credit and government schemes.

Need help? Call 1800-103-0025 or consult a CA.