How to File ITR-4 & Maximize Your Tax Refund: Hacks Revealed!

It’s that time of the year when you file your income tax returns! If you are a small business owner or a hustling freelancer, however, the forms and the technicalities involved in filing them are your biggest nightmares. What if I make a mistake or worse, miss the deadline? You keep wondering, as sweat trickles down your face.

But hey, what if we make the ITR filing process easy for you? Let’s start with ITR-4 (Sugam). Mastering how to file ITR-4 online can not only save you time, but also the stress that it brings along. Let’s go!

What is ITR-4?

ITR-4 is an income tax return form that taxpayers who have income from business or profession and opt for presumptive taxation under Sections 44AD, 44ADA, or 44AE of the Income Tax Act are required to file. It, as such, caters to resident individuals, HUFs, and partnership firms (excluding LLPs) whose total income does not exceed INR 50 lakh during any given financial year.

Those eligible for ITR-4 return filing can report the following income…

• That from salary/pension
• That from one house property (without any brought-forward loss)
• That from long-term capital gains up to INR 1.25 lakh
• And that from other sources, excluding lottery or racehorse winnings

ITR-4 simplifies the tax filing process by helping small businesses and professionals get rid of detailed books of accounts and declare income on a presumptive basis.

Prerequisites for Filing ITR-4

Before you file ITR-4 online, ensure you have the following documents handy…

• A registered account on the Income Tax Department’s e-Filing portal with valid credentials (PAN as user ID)
• Permanent Account Number (PAN) and Aadhaar linked with PAN
• Bank account details, including IFSC and account number for the refund credit
• Summary of your income sources computed under presumptive taxation
• Details of income from salary, pension, one house property, and other sources, such as interest income
• Secured digital documents for deductions under Chapter VI-A, such as insurance premiums, life savings, and donations
• Form 10-IEA if you are planning to opt out of the new tax regime and select the old tax regime
• Tax deduction certificates like Form 16, Form 26AS for TDS details, and tax payment challans if advance tax or self-assessment tax has been paid
• Previous year income tax return for reference, if applicable

If you keep the aforementioned list of documents ready, your ITR-4 filing process will surely become as easy as sipping tea.

How to File ITR-4 Online: Step-by-Step Process

Filing your ITR-4 online isn’t a tough nut to crack, but it requires precision. Here’s a detailed guide on how to file ITR-4 step by step so you can attain the same…

Step 1: Log in to the Income Tax e-Filing Portal

• Visit the official portal: https://www.incometax.gov.in/iec/foportal/
• Log in using your PAN, password, and captcha.
• If you are a new user, register using your PAN and follow the instructions to create a login ID.

Step 2: Select the Assessment Year & ITR Form

• Go to e-File > Income Tax Return > File Income Tax Return.
• Choose Assessment Year: AY 2025-26 (for income earned in FY 2024-25).
• Select ITR-4 and choose Online as the filing mode.
• Choose your filing category: Individual/HUF/Firm (other than LLP).
• Specify the reason for filing (for example, income above the exemption limit).

Step 3: Verify Personal Information

• Your personal details (name, PAN, Aadhaar, DOB, address, contact info) will be auto-filled. Review carefully.

Step 4: Fill in Gross Total Income

• Include income under…
• Presumptive business/professional income (Sections 44AD, 44ADA, 44AE)
• Salary/pension
• One house property
• Other sources (for example, interest income, family pension, etc.)

Note: Ensure presumptive profit rates are correctly applied.

Step 5: Disclosures and Exempt Income

Disclose….

• Gross receipts/turnover (especially if registered under GST)
• Exempt income (e.g., agricultural income up to INR 5,000)

New Requirement: If you have opted out of the new tax regime in previous years, you must confirm past filings of Form 10-IEA and whether you wish to continue opting out.

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Step 6: Declare Deductions

• Enter eligible deductions under Chapter VI-A, such as…
• Section 80C: PPF, LIC, ELSS, tuition fees
• Section 80D: Health insurance premiums
• Section 80CCD(1B): NPS
• Section 80GG: Rent paid (if no HRA; requires Form 10BA)

Note: Under the new tax regime, most deductions are not allowed except for specific ones like NPS employer contributions.

Step 7: Taxes Paid

Verify…

• TDS from Form 26AS and AIS
• Advance Tax
• Self-Assessment Tax

New Requirement: Mention the TDS section under which tax was deducted (e.g., 194A for interest income).

Step 8: Preview and Validate

• Review all sections.
• Use the portal’s internal validation tool to check for errors.
• Correct any discrepancies before submission.

Step 9: Submit and Verify Your Return

Submit the return online and verify it within 30 days using…

• Aadhaar OTP
• Net Banking
• Digital Signature
• Or send the signed ITR-V to CPC, Bengaluru

Note: If not verified, the return will be treated as invalid.

Step 10: Save Acknowledgment

• Download and save the acknowledgment receipt (ITR-V or confirmation page).
• This serves as proof of successful filing.

To understand how to fill ITR-4 with an example, consider Mr. Sharma, a freelance consultant who earns INR 40 lakh under presumptive taxation (Section 44ADA), INR 5 lakh from salary, INR 1 lakh from house property, and INR 50,000 as interest income. As per his income sources, he is required to file ITR-4.

To do the same thus, he will have to enter his income details under the respective heads to claim deductions of INR 1.5 lakh under Section 80C and INR 25,000 under Section 80D.

How to Download ITR-4 (Sugam)?

You can download ITR-4 (Sugam) in the following two ways…

• From the Income Tax Department’s e-Filing portal under the Downloads section as a PDF or Excel utility.
• Directly after submission, you can download your filed ITR-4 return acknowledgment in PDF format from your dashboard.

ITR-4 Filing Last Date FY 24-25

ITR-4 is for individuals, HUFs, and firms (other than LLP) opting for presumptive taxation. If audit is not required, the return must be filed by 15 September 2025. If audit provisions apply, the due date becomes 31 October 2025, and in cases involving international/specified domestic transactions, the return is due by 30 November 2025.

Common Mistakes to Avoid When Filing ITR-4

Filing your ITR-4 correctly is necessary in order to stay clear of notices and penalties. Here are some blunders that you need to watch out for…

• Not opting out of the new tax regime timely if intending to use the old regime for business or professional income.
• Omitting income sources, especially house property or interest income.
• Entering incorrect presumptive income amounts or not applying the correct Sections (44AD, 44ADA, 44AE).
• Ignoring advance tax payment and TDS details leads to miscalculated tax liabilities.
• Not verifying the return within the stipulated time renders the return invalid.
• Missing to claim eligible deductions under Chapter VI-A or claiming ineligible ones if on the new tax regime.
• Failing to attach or upload the necessary supporting documents where applicable.
• Using outdated forms or filing modes.

Conclusion

If you know how to file ITR-4 online, you, as a small business owner or working professional, can adhere to tax laws in India without putting in much effort. All you then need to do is stay updated with notifications from the Income Tax Department, so you don’t miss out on anything.

For those requiring additional tech help to facilitate their ITR-4 filing process online, we have specialised income tax software like GEN Income Tax Software, Saral IncomeTax, etc., as well. You just need to give our product team a call to get things sorted for you!