Who cannot file ITR-4S?

The ITR-4S Form also called Sugam is the Income Tax Return form for taxpayers who run small businesses. It is applicable where the total turnover or gross receipts for the year are less than Rs 1 Crore and where the income has been calculated under the presumptive method as per Section 44AD and Section 44AE. You can read more about presumptive income and its taxation here.

Did you know – if you file with ClearTax you never have to choose the form applicable to you, we do that automatically!

However, the ITR-4S Form cannot be used if the taxpayer has:

  • Income from agency business
  • Income from commission or brokerage
  • More than one house property
  • Earned Speculative income like winning from lotteries, horse races
  • Agriculture income or exempt income more than Rs 5,000
  • Taxable Capital gains
  • Losses to be carried forward
  • Holds any assets outside the country
  • Has any financial interest in any foreign entity
  • Is a signing authority in any bank account located outside India
  • Claimed relief under Section 90 or 91

Want to file ITR-4S or want to know if your business can be taxed under the presumptive method? Reach out to us support@cleartax.in

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