Who can use/file ITR 4 (SUGAM)

Who can use/file ITR 4 (SUGAM)

Form ITR 4 (SUGAM) can be used by an Individual/HUF/Firm (Other than LLP) whose total income for the year includes:

• Business income computed as per the provisions of section 44AD or  44AE; or ;
• Income from Profession as computed as per the provisions of  44ADA; or
• Income from salary/pension; or
• Income from one house property (excluding cases where the loss is brought forward from previous years); or
• Income from other sources (excluding winnings from lottery and income from race horses).

Further, in a case where the income of another person like spouse, minor child, etc., is to be clubbed with the income of the taxpayer, this return form can be used where income to be clubbed falls in any of the above categories. 

Who cannot use/file ITR 4 (SUGAM)

• Whose total income for the year includes income from more than one house property.
• Whose total income for the year includes income from winnings from lottery or income from race horses.
• Whose total income for the year includes income chargeable to tax under the head “Capital Gains”.
• Whose total Income for the year includes income taxable under section 115BBDA.
• Whose total income for the year includes income of nature referred to in section 115BBE.
• Any resident having income from any source outside India.
• Whose total income for the year includes agricultural income of more than Rs. 5,000.
• Whose total income for the year includes income from speculative business and other special incomes.
• Whose total income for the year includes income from agency business or income in the nature of commission or brokerage.
• Who claims relief under section 90, 90A and/or section 91
• Who is a resident and ordinarily resident and has any assets (including financial interest in any entity) located outside India or signing authority in any account located outside India.

In case of a taxpayer who is engaged in any business eligible for the presumptive taxation scheme of section 44AD or section 44AE or section 44ADAbut he does not opt for the presumptive taxation scheme, then such a taxpayer has to maintain the books of account of the business as per the provisions of section 44AA and has to get these accounts audited. In such a case he cannot use ITR 4.