The Sugam or ITR 4S form is available for taxpayers who are individuals, HUF members, or business owners with a presumptive salary, pension, or business income in addition to income from a property as well as income from other sources for IT returns.
ITR 4s or Sugam is Income Tax Return form that is to be filed by individuals, Hindu Undivided Family and small business taxpayers who have presumptive business income, salary or pension, one house property and income from other sources. This form cannot be used if the taxpayer has more than one house property or who has a speculative income or who has more than Rs.5,000 in agricultural income. A person who has won from lotteries or races cannot use this form. A person who has capital gains or losses to be carried forward, he cannot use ITR 4s.
ITR 4s form is for those taxpayers who have opted for presumptive income scheme as per Section 44AD and Section 44AE of the Income Tax Act. But if the turnover of your business is less than Rs.1 crore, then the taxpayer has to file ITR 4S.
ITR 4S Form
The ITR 4s form is divided into 4 parts.
Part A: General information: This includes your name, sex, PAN number, date of birth, income tax ward, address, email address, mobile number.
Part B: Gross total income from the 5 heads of income: The 5 heads are income from business, income from salary or pension, income from house property, income from other sources and finally you need to add all of that it gives you the gross total income.
Part C: Deduction and total taxable income: Deductions allowed are under section 80C, 80CCD(2), 80DD, 80EE, 80GGC, 80TTA, 80CCC, 80CCG, 80DDB, 80G, 80RRB, 80U, 80CCD(1), 80D, 80E, 80GG and 80QQB. You then need to add all the deduction and deduct it from your gross total income this will give you the total taxable income.
Part D: Tax computation and tax status: under this you need to include your surcharge, relief under section 89, total interest under section 234B, total advance tax paid, total TCS collected, refund, rebate under section 87A, cess on tax payable after rebate and on surcharge, balance tax after relief, total interest under section 234C, total self-assessment tax paid, total taxes paid, tax payable after rebate, total tax, surcharge and cess, total interest under section 234A, total tax and interest and total TDS claimed. Finally, the total payable if total tax and interest is greater than the total taxes paid.
After you have filled up all these details, you will have to verify and sign on the return.
If you have to include the details of income from business, then you need to fill up the following required information under computation of presumptive income under Section 44AD or 44AE.
The particulars include:
- Schedule IT: This is the statement of payment of advance tax and tax on self-assessment.
- Schedule TCS: This includes the statement of taxes collected at source.
- Schedule TDS1: This is the statement of tax deducted at source on salary.
- Schedules TDS2: This is the statement of tax deducted on income apart from that on salary.
- The taxpayer might also have to fill up particulars of supplementary schedule TDS1, TDS2, IT and TCS if required.
The taxpayer must include the PAN number details and name as and when required.
The form can be filled up manually or through downloading this form from Income Tax website (http://www.incometaxindia.gov.in/forms/income-tax%20rules/2015/itr4s_2015.pdf).
ITR 1 or ITR 4S:
ITR 1 or Sahaj is a return form to be used by those whose total income for the current assessment year includes income from salary or pension, income from one house property or income from other sources excluding winning lottery or income from race horses. ITR 1 cannot be used by residents having asset located outside India. If the taxpayer has exempt income that is more than Rs.5,000, he cannot use ITR 1.
ITR 4s or Sugam is tax return form to be filled out by individuals, Hindu Undivided Family and small business taxpayers. The income on business must be presumptive. The taxpayer must be either getting salary or pension and must own one house property and can have income from other sources as well. The form is however not suitable for those having more than one house property, and who has speculative income. The taxpayer can’t use this form if he has agricultural income exceeding Rs.5,000, if he has won a lottery or races, if he has capital gains or losses that are to be carried forward.
ITR 4S Applicability
ITR 4s is applicable only to individuals, Hindu Undivided Family and small business taxpayers deriving their income from business which has presumptive income under section 44AD and 44AE, income from salary or pension, income from one house property and income from other sources.
The taxpayer can club the income of spouse or a minor child with his income if the clubbed income falls in the income source mentioned above. The income is computed after each loss, allowance and depreciation is considered.
Who needs the ITR 4S?
ITR 4s is a user friendly form and is simple and accurate. It helps optimize your cost and is faster in processing and generates transparency. This form does not require you to affix any documents. Taxpayer can fill up this form manually or electronically with or without a digital signature with the income tax department. Only individuals, Hindu Undivided Family and small business taxpayers deriving their income from business which has presumptive income under section 44AD and 44AE, income from salary or pension, income from one house property and income from other sources can use this form.
The taxpayer must know that if he files a wrong form, it is liable to be rejected by the Income Tax Department of India. The ITR 4s form cannot be filled if the taxpayer has any asset outside India, or if he has any financial interest outside India. ITR 4s form was released for the assessment year 2020-21 by Income Tax Department.