Guide to ITR-4S (SUGAM)

Income-tax department has introduced a separate form taxpayers running business under presumptive scheme. This form is referred as "ITR- 4S (SUGAM)".

Presumptive taxation scheme is easy to understand and free from complexities. On similar ground, IT department has also came up with form which is Easily Understandable (Sugam in hindi) ITR-4S.

Who can file ITR-4S:-

ITR-4S is applicable only to Individual/ HUFs/ Partnership firms having following sources of income-

1. Business income as per presumptive taxation scheme U/s. 44AD and/or 44AF of Income Tax Act.
2. Income from salary,
3. Income from only 1 house property (except where loss is brought forward from previous years),
4. Income from other sources like interest from savings A/c., interest from fixed deposits, etc. (except casual incomes like lottery, card games, income from race horse etc.)

Who cannot file ITR-4S:-

Individuals/ HUFs/ partnership firm who are having following incomes are not eligible to file ITR-4S form-

1. Income from more than one house property.
2. Previous year's brought forward loss from house property.
3. Income from capital gains from sale of shares, property, etc.
4. Income from speculative business.
5. Income from profession, commission, brokerage, agency.
6. Income from agricultural activities exceeding Rs. 5,000/-,
7. Casual incomes like lottery, card games, horse race, etc.,
8. Foreign source income.
9. Where taxpayer wishes to claim double taxation relief U/s. 90/90A/91 of Income Tax Act,
10. Resident taxpayer having any bank A/c. or any foreign asset like shares, property, etc. outside India.

If you want to refer format of ITR-1 in pdf format,

Click here to Download ITR-4S.

If you want to refer instructions for filing ITR-1 in pdf format,

Click here to view instructions to fill-up ITR-4s.

Know more about Presumptive taxation Scheme.

Remember the due date for filing ITR-2A is 31st July, 2016 for F.Y. 2015-16.

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Contents of ITR-4S (SUGAM)

ITR-4S form is divided into various sections as follows. You need to fill these the sections as per your applicability.

1. Personal details:-

You need to provide personal details like PAN (Permanent Account Number), name, address, gender, Date of birth, contact details, etc.

1. Gross Total Income:-

Aggregate of all incomes like salary, house property and other sources is treated as "Gross Total Income". Details related to incomes are required to be filled in respective income schedule.

1. Deductions and Taxable Total Income:-

Tax saving deductions are given under various sections of Income Tax Act.

Some of the frequently used tax saving deductions are as follows-

1. Sec. 80C- Life insurance, PPF, PF, NSC, tuition fees, specified mutual funds, etc.
2. Sec. 80CCC & CCD- Investment in pension funds and schemes of Central Government.
3. Sec. 80D- Health insurance & preventive medical check-up.
4. Sec. 80E- Interest payment of higher education loan.
5. Sec. 80G- Donation made to various funds and charitable institutions.
6. Sec. 80TTA- Savings bank & post office A/c. interest.
7. Tax computation and tax status:-

Here, you are required to compute tax liability and claim taxes paid by you viz. TDS, advance tax, self assessment tax, etc.

Tax status is referred as Nil tax, tax payable or tax refundable.

1. Verification:-

You needs to sign the return with description that information furnished by you is correct.

1. Schedules:-

At the end, taxpayer is required to fill-up the various schedules as follows-

1. Schedule BP: Following particulars are required to be provided-
2. Gross turnover or gross receipts i.e. sales during a financial year.
3. Presumptive income U/s. 44AD- This income should not be less than 8% of sales mentioned above.
4. Presumptive income U/s. 44AE.
5. In case of partnership firms, salary & remuneration paid to partners.
6. You need to provide 4 figures as on 31st March of financial year such as sundry debtors, sundry creditors, stock-in-trade and cash in hand.

No other complex financials are required to be provided like balance sheet or profit & loss A/c.

2. Schedule AL- This schedule is applicable if total income of taxpayer exceeds Rs. 50 lakhs during a financial year.

Here, following details are required to be provided-

1. Immovable assets like land, building.
2. Movable assets like cash in hand, jewellery, vehicles, yacht, boats, aircrafts, etc.
3. Liabilities (loans) in relation to above assets.
4. Details of advance & self-assessment tax paid.
5. Details of TCS (tax collected at source) as per Form 27D issued by tax collectors.
6. Details TDS from salary as mentioned in Form 16 issued by employer.
7. Details of TDS other than salary such as TDS on interest from Fixed deposits as per Form 16A issued by tax deductors.

Some important terms

You may come across some tax terms while filing your tax return that you should about-

1. Income tax ward/ circle- Income tax ward/ circle is determined on the basis of PAN and jurisdiction. You may view your ward/ circle by clicking here.
2. Revised return- After filing your return if you notice any mistake or addition to the return, then your may file a revised return by making necessary corrections. Original return will be replaced by Revised return.
3. Defective return- If you file a return containing any defect, then return will be treated as defective. IT department will issue a notice to correct the defect within time specified in notice.
4. Notice number- If you are filing a return in response to any notice, you need to mention the notice number mentioned in the notice.
5. Advance tax- Tax paid in advance i.e. before the end of financial year are referred as Advance tax. Advance tax is required to be paid in quarterly instalments if total tax liability exceeds Rs. 10,000/-.
6. Self-assessment tax- After filling all the income & deduction details in your return and considering all TDS and advance tax payments, if tax is payable, then the same shall be paid before filing of return. This tax is computed by taxpayer himself hence it is referred as Self-assessment tax.
7. TCS (tax collection at source)- At the time of sale of some specific goods, tax is collected by purchase of goods. This tax is known as TCS (tax collection at source). You can claim this TCS in your return on the basis of Form 27D issued by purchase i.e. tax collector.

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