Download ITR-4S SUGAM Form for AY 2016-17 in PDF

By | June 9, 2016

ITR-4S Form: SUGAM

The SUGAM ITR-4S is a Form used by a certain section of Tax Assessees while filing their Income Tax Returns in India. The process of filing Tax Returns in the Indian subcontinent is done through various types of ITR and other Forms.

The SUGAM ITR-4S Form is a Presumptive Income Tax Return Form and is part of the Income Tax Returns Filing process with the Income Tax Department of India. The Form is required to be filled out and submitted by those who are eligible to use it under the Income Tax Act, 1961, and the Income Tax Rules, 1962.

The SUGAM ITR-4S Form is the Income Tax Return form for those taxpayers who have opted for the presumptive income scheme as per S. 44AD and S. 44AE of the Income Tax Act. However, if the turnover of the business mentioned above exceeds Rs. 1 crores, the tax payer will have to file ITR-4.

Due Date for Filing Returns

The due date of filing the ITR-4S form for the Financial Year 2015-16 is 31 July, 2016.

Use of SUGAM ITR 4S Return Form

This Return Form can be used by Individual/HUF whose total income for the assessment year 2016-17 includes:-

  • Business income where such income is computed in accordance with special provisions referred to in S. 44AD and 44AE (i.e. on presumptive basis)
  • Income from salary/ Pension
  • Income from one house property (excluding cases where loss is brought forward from previous years)
  • Income from other sources (Excluding winning 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 assessee, this Return Form can be used where such income falls in any of the above categories.

Non Use of SUGAM ITR-4S Form

ITR-4S Profesional man work

Every Income Tax Return Form is applicable only to a certain section of Assessees and only those who are eligible to fill a particular form are allowed to do so. In the event that a wrong form has been filled out while filing Tax Returns, the form is liable to be rejected by the Income Tax Department of India.

An important factor to take note of before filing Income Tax Returns through the SUGAM ITR-4S Form is that this Form is not to be used by any Individual or Hindu Undivided Family that fulfills any of the following criteria

  • Holds any assets outside the country
  • Has any financial interest in a foreign entity
  • Is a signing authority in any bank account that is located outside the Indian Territory
  • ITR 4S has been released for AY 2015-16 by Income Tax Department

Eligibility for SUGAM ITR-4S Form

Individuals and Hindu Undivided Families who have earned their Income only through the following means only are eligible to use the SUGAM ITR-4S Form to file their Income Tax Returns

  • Earned Business Income that is computed in accordance with the special provisions as referred to in S. 44AD and 44AE of the Income Tax Act, with relation to the computation of income
  • Earned Income through Salary and/or Pension
  • Earned Income from one House Property, except where loss is carried forward from preceding years
  • Income from other sources except for earnings through Lottery, Race horse winnings, Contests, and other legal means of gambling

Non Eligibility for SUGAM ITR-4S Form 

Individuals and Hindu Undivided Families who have earned any Income through the following sources are not eligible to fill the SUGAM ITR-4S

Situated outside the Indian Territory

Non Mandatory clauses for SUGAM ITR-4S Form

The SUGAM ITR-4S Form is not mandatory to be filed by the Individual or Hindu Undivided Family, in this case the Assessee, if the following is fulfilled

  • All Books of Accounts and other documentation related to Business is maintained by the Assessee as per S. 44AA of the Income Tax Act
  • An Audit of Accounts is carried out and the Audit Report for the Business is obtained in accordance to S. 44AB of the Income Tax Act

In such cases the Regular ITR-4 Form should be filed and not the SUGAM ITR-4S Form.

Purpose

The Income Tax Department has provided free return preparation software in the downloads page as well as facility for online ITR submission for ITRs 1&4S which are fully compliant with data quality requirements. However, there are commercially available software or websites that offer return preparation facilities as well. In order to improve the data quality received through in ITRs prepared through such commercially available software, various types of validation rules are being deployed in the e-Filing portal so that the data which is being uploaded can be validated to a large extent. Taxpayers are advised to review the same to ensure that the software that is used is compliant with these requirements to avoid rejection of return due to poor data quality or mistakes in the return. Software providers are strictly advised to adhere to these rules to avoid inconvenience to the taxpayers who may use their software.

Validation Rules

The validation process at e-Filing/CPC end is to be carried out in ITR 4S for each defect as categorized below:

Category of defectReturn will not be allowed to be uploaded. Error message will be displayed
AReturn will not be allowed to be uploaded. Error message will be displayed
BReturn data will be allowed to be uploaded but the taxpayer uploading the return will be informed of a possible defect present in the return u/s 139(9). Appropriate notices/ communications will be issued from CPC.
CThird party utility providers will be alerted about the inconsistent data quality and warned about future barring of their utility.

Brief discussion about

 Section⇒S. 44ADS. 44AE
Presumptive IncomeWhen you are running a small business, you may not have enough resources to maintain proper accounting information and calculate your profit or loss. This makes it difficult to keep track of your income from such a business and find out how much tax you need to pay.

With this in mind the Income Tax Department has laid out some simple provisions where your income is assumed based on the gross receipts of your business. This method is called the presumptive method, where tax is paid on an estimated basis.

For those who are in the business of plying, leasing or hiring of trucks a scheme similar to presumptive income scheme u/s 44D is available.
Features of this Scheme
  • Your Net Income is estimated to be 8% of the gross receipts of your business.
  • You don’t have to maintain books of accounts of this business.
  • You don’t have to pay Advance Tax for such a business.
  • You are not allowed to deduct any business expenses against the income.
  • Net Income from a heavy goods vehicle (including any goods carriage) will be assumed as Rs 7,500 per month for each vehicle beginning assessment year 2016-17.
  • You don’t have to maintain books of accounts of this business.
  • You don’t have to pay Advance Tax for such a business.
  • You are not allowed to deduct any business expenses against the income.
If you are running more than 1 business, the scheme has to be chosen for each business. For example, if you run 3 businesses where only 1 is assessed u/s 44AD. The relief of not maintaining accounting records & no requirement of audit is only applicable to the business to which this scheme applies. For other 2 businesses which are not covered under this section – the accounting records have to be made and audit is also required.

Similarly, in case of Advance Tax, the exemption from payment of advance tax is only granted for the business for which this scheme has been opted for. If the tax payer has income which is other than from such business, where his tax liability exceeds Rs 10,000 in a year, he has to pay advance tax on such other income. Advance tax will only be calculated on the remaining income and not for the business covered u/s 44AD.

The scheme cannot be adopted by the taxpayer, if he has claimed deduction u/s 10, 10A, 10B, S. 10BA, or S. 80HH to 80RRB in the relevant year.

Here ‘Goods carriage’ means any vehicle used only for the carriage of goods. ‘Heavy goods vehicle’ means a goods carriage whose standalone weight (without loading goods) is more than 12,000 kgs.

Part of a month shall be rounded off to the next month. For example if a goods carriage is owned for 9 months and 3 days, the net income shall be calculated as if the carriage was owned for 10 months.

The relief of not maintaining accounting records & no requirement of audit is only applicable to the business to which this scheme applies. For any other businesses which are not covered under this section – the accounting records have to be made and audit is also required.

In case the taxpayer chooses to declare lower income than above, he shall have to maintain books of accounts and get them audited.

Eligibility Criteria for this SchemeTo be eligible for this scheme:

  • Your gross receipts or turnover of the business for which you want to avail this scheme should be less than Rs 1 crore.
  • You must be a Resident in India.
  • This scheme is allowed to an individual, a HUF or a partnership firm. It is not available to a Company.
To avail this scheme

  • You should be in the business of plying, leasing or hiring trucks.
  • You should not own more than 10 goods carriages at any time during the year. Include carriages taken on hire purchase or on installments.
  • You may be an individual, HUF, Company or partnership firm – scheme is allowed to all taxpayers.
Eligible BusinessesThe taxpayer may be in any business – retail trading or wholesale trading or civil construction or any other business to avail this scheme. But this method of income computation is NOT applicable to:

  • Income from commission or brokerage
  • Agency business
  • Business of plying, hiring or leasing goods carriage (see S. 44AE)
  • Professionals – who are carrying on profession of legal, medical, engineering, architectural, accountancy, technical consultancy, interior decoration, an authorized representative, film artist, company secretary and information technology. Authorized representative means – any person, who represents someone, for a fee or remuneration, before any Tribunal or authority under law. Film Artist includes a producer, actor, cameraman, director, music director, art director, dance director, editor, singer, lyricist, story writer, screenplay writer, dialogue writer, dress designer – basically any person who is involved in his professional capacity in the production of a film.

 

 Presumptive Income in case of taxpayers engaged in business of plying, leasing or hiring of trucks (u/s 44AE)
Deduction for Business ExpensesNo business expenses are allowed to be deducted from the net income. Depreciation is also not deductible. However, in case of a partnership firm, separate deduction for remuneration of partners and interest paid to partners is allowed. This must be within the limit specified u/s 40(b).

Even though depreciation is not allowed as a deduction written down value (WDV) of the assets shall be considered as if depreciation has been allowed.

No business expenses are allowed to be deducted from the net income. Depreciation is also not deductible. However, in case of a partnership firm, separate deduction for remuneration of partners and interest paid to partners is allowed. This must be within the limit specified u/s 40(b).

Even though depreciation is not allowed as a deduction written down value (WDV) of the assets shall be considered as if depreciation has been allowed.

Can the taxpayer declare higher or lower income than 8% of gross receipts?The taxpayer can voluntarily declare a higher income and pay tax on it. In case the taxpayer chooses to declare lower income than 8% of gross receipts – he shall have to maintain books of accounts and get them audited. The taxpayer can voluntarily declare a higher income and pay tax on it. In case the taxpayer chooses to declare lower income than as mentioned above – he shall have to maintain books of accounts and get them audited. Where proper accounting records have to be cash payments of more than Rs 20,000 (and not made via an account payee cheque or bank draft) are not deductible, however, in case of a transport operator this limit has been increased to Rs 35,000.
Computing Turnover or Gross ReceiptsGross receipts or Turnover mean the total collections of the business. The receipts shall be inclusive of VAT & Excise Duty. The receipts shall also include delivery charges as well as receipts from sale of scrap.

Discounts given, advances received and money received on sale of assets should be excluded.

What is the structure of the ITR-4S Form?

ITR-4S is divided into:

  • Part A: General Information
  • Part B: Gross total income from the five heads of income
  • Part C: Deduction and total taxable income
  • Part D: Tax computation and tax status
  • Verification & signatures on the return
Schedule BP – Details of income from Business. The following information is required in this schedule

Computation of presumptive income u/s 44AD

Computation of presumptive income u/s 44AE

Financial Particulars of the Business

  • Schedule IT: Statement of payment of advance-tax and tax on self-assessment.
  • Schedule-TCS: Statement of tax collected at source.
  • Schedule TDS1: Statement of tax deducted at source on salary.
  • Schedule TDS2: Statement of tax deducted at source on income other than salary.
  • Supplementary schedule TDS1
  • Supplementary schedule TDS2
  • Supplementary schedule IT
  • Supplementary schedule TCS

To file your ITR-4S Form

You can submit your ITR-4S Form either online or offline. It is mandatory to file Income Tax Returns electronically (either through Mode 3 or Mode 4) for the following assesses:

  • those who earn more than Rs. 5 lakhs per year
  • those having any assets outside India (including financial interest in any entity) or signing authority in any account outside India
  • those claiming relief under Section 90/90A/91 to whom Schedule FSI and Schedule TR apply

Offline:

  • By furnishing a return in a physical paper form
  • By furnishing a bar-coded return

The Income Tax Department will issue you an acknowledgment at the time of submission of your physical paper return.

Online/Electronically:

  • By furnishing the return electronically under digital signature
  • By transmitting the data electronically and then submitting the verification of the return in Return Form ITR-V

If you submit your ITR-4S Form electronically under digital signature, the acknowledgment will be sent to your registered email id. You can also choose to download it manually from the income tax website. You are then required to sign it and send it to the Income Tax Department’s CPC office in Bangalore within 120 days of e-filing.

Remember that ITR-4S is an annexure-less form i.e. you do not have to attach any documents when you send it.Capture

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