ITR-4 Return

Exploring Form ITR-4 Sugam: A Detailed Insight

Form ITR-4 Sugam is crucial for tax compliance under Sections 44AD and 44AE, requiring submission for presumptive income schemes and mandatory for businesses with ₹2 crores annual revenue.

Eligibility Criteria for Form ITR-4

To maximize scheme benefits, meet prerequisites, several prerequisites must be met:

Gross receipts or sales from the company should be below ₹2 crore.
The taxpayer should be an Indian resident.
Eligibility is extended to individuals, Hindu Undivided Families (HUF), and partnership firms, excluding companies.

Applicability of Form ITR-4

Form ITR-4 is indispensable for specific groups of taxpayers

Small business owners with sales ledgers but lack comprehensive bookkeeping records.
Freelancers, including online retailers, merchants, manufacturers, and wholesalers.
Independent professionals like bloggers, vloggers, writers, and experts such as lawyers, engineers, and physicians.
Individuals with secondary income sources like salary plus freelance work, earnings from futures and options (F&O), cryptocurrencies, commodities, or foreign exchange (FX).

Essential Documents for Form ITR-4 Filing

Form 26AS & AIS

Form 16

Form 16A

Bank statements

Housing loan interest certificate

Donation receipts

Rental/lease agreement

Investment receipts

Unveiling the Presumptive Taxation Scheme

Small businesses can streamline income assessment using the Presumptive Taxation Scheme, based on gross receipts.This scheme encompasses three provisions:

Section 44AD

For individual taxpayers and Hindu United families engaged in specific business activities, the scheme calculates estimated income.

Section 44ADA

Registered post notices comply with 1897 General Clauses Act 27.

Section 44AE

Determines income for individuals, HUFs, and businesses engaging in hiring goods and carriages.

Stepping through the ITR-4 Form Filing Process

Visit the Official Website

Visit website, complete filing process, link PAN, identify as client.

Provide Personal Details

Enter personal and salary details, followed by OTP verification.

Income Information

Include business income details in sections 44AD, 44ADA, and 44AE.

Incomes and Deductions

Incorporate income details and claim deductions.

Review and Disclosure

Review your income and add any necessary disclosures.

Select Tax Regime

Choose the appropriate tax regime.

Self-Declaration and Submission

Complete self-declaration and file return electronically.

Final Acknowledgment

Acknowledge submission with a number.

If the return was prepared by a tax return preparer, specific information under TRP must be filled out. Here’s a breakdown of the 20 schedules

Schedule-IF

Company Details

Schedule-S

Details of Primary Income

Schedule-80G

Statement of Authorized Deductions under Section 80G

Schedule-BFLA

Income after Setting Off Loss from Previous Years

Schedule CYLA

Statement of Income after Setting Off Current Year's Losses

Schedule-CFL

Statement of Carry Forwarded Losses

Schedule-VIA

Deductions under Chapter VIA

Schedule HP

Details of Income from House Property

Schedule-CG

Capital Gains

Schedule-OS

Computation of Income from Other Sources

Schedule-SPI

Income of Spouse/Minor Child/Son's Wife in Assessee's Total Income

Schedule-SI

Statement of Income Chargeable to Tax at Special Rates

Schedule EI

Exempted Income Details

Schedule PTI

Pass-Through Income from Business or Investment Accounts under Section 115UA, 115UB

Schedule-AL

Assets and Liabilities at Year-End (Applicable for Income > ₹50 Lakhs)

Schedule-FSI

Statement of Foreign-Sourced Income

Schedule-TR

Tax Relief Details on Income Outside India

Schedule FA

Foreign Assets and Income Details

Schedule-5A

Apportionment of Earnings between Partners Governed by Portuguese Civil Code

How to File Form ITR-2 Online

Step 1: Consult Our Tax Experts:

Schedule a tax consultation with our experts to address your queries.

Step 3: Complete Form ITR-2 Filing:

Tax experts file Form ITR-2 online, keeping you informed about progress.

Step 2: Provide Required Data

Provide necessary information to experts for paperwork handling.

Serving Income Tax Notices: Methodology and Considerations

Recipient

Notifications for minors' safety and well-being.

Service by Post

Registered post notices comply with 1897 General Clauses Act 27.

Service by Affixture

Refused acknowledgment notices affixed to residences or workplaces.

HUFs and Partnership Firms

Notifications sent to managers or relevant members.

Closed Businesses

Notifications sent to liable individuals.

The cessation of GST payments.

GST registration is mandatory for some businesses; cancelling can lead to penalties and violations.

The GST Act provides provisions for revocation of cancellation orders, including forms and procedures. Rule 23 of the CGST Rules, 2017 covers revocation provisions.

Documents Required for eWay Bill Generation

Invoice/Challan

Authentic document showcasing goods in transit.

Transporter ID/Vehicle Number

Mandatory for road transportation.

Transport Document Details

Necessary for rail, air, or ship transit.

Overview of GST Filing Returns - Types and Due Dates

GSTR1

GSTR1 is the form used for tax returns on outward supplies, encompassing both interstate and intrastate B2B and B2C sales. It also includes details of purchases under reverse charge and inter-state stock transfers made during the tax period. Late filing of GSTR1 can result in a late fee, which is collected in the subsequent open return, Form GSTR-3B. Since January 1, 2022, taxpayers cannot file Form GSTR-1 if they haven't filed Form GSTR-3B in the preceding month.

GSTR1A

This amendment form corrects any discrepancies between the GSTR-1 of a taxpayer and the GSTR-2 of their customers. The filing window for GSTR1A is between the 15th and 17th of the following month.

GSTR2

Monthly GST returns for inward supplies are filed using this form. It contains taxpayer information, return period, and detailed invoice-level purchase information related to goods and services separately.

GSTR2A

This auto-generated tax return compiles purchases and inward supplies made by a taxpayer based on the information from their suppliers GSTR-1.

GSTR2B

An auto-generated document that acts as an Input Tax Credit (ITC) statement for taxpayers, facilitating faster return filing, minimizing errors, easing reconciliation, and simplifying compliance.

GSTR3

This form is used to file consolidated monthly tax returns. It contains the taxpayers basic information, turnover details, final aggregate-level inward and outward supply details, tax liability under CGST, SGST, IGST, additional tax (+1% tax), ITC, cash, liability ledgers, and details of other payments like interests, penalties, and fees.

GSTR3A

This is a tax notice issued by the tax authority to a defaulter who has failed to file monthly GST returns on time.

GSTR3B

It is a temporary consolidated summary GST return for inward and outward supplies, introduced as a relaxation for recently registered businesses.

GSTR4

This quarterly GST return is filed by compounding vendors. It includes the total value of supplies made during the covered period and details of tax paid at the compounding rate (not exceeding 1% of aggregate turnover) along with invoice details for inward supplies.

GSTR4A

The Quarterly purchase-related tax return filed by composition dealers, automatically generated by the GSTN portal based on information from the suppliers GSTR-1, GSTR-5, and GSTR-7.

GSTR5

Variable return for Non-resident foreign taxpayers, containing details of the taxpayer, return period, and invoice details of all goods and services sold and purchased. It also includes imports on Indian soil for the registered period/month.

GSTR6

This monthly GST return is for ISDs (Input Service Distributors), containing details of invoice-level supply from the GSTR-1 of counterparties, credit for ITC services received, debit for ITC reversed or distributed, and closing balance.

GSTR7

It is a monthly return for TDS (Tax Deducted at Source) transactions, containing the taxpayers basic information, return period, supplier's GSTIN, and invoices against which the tax has been deducted, categorized under SGST, CGST, and IGST. It also includes details of other payments like interests and penalties.

GSTR8

This is the monthly return for e-commerce operators. It contains the taxpayers basic information, return period, details of supplies made to customers through the e-commerce portal, tax collected at source, tax payable, and tax paid.

GSTR9

The annual consolidated tax return, comprising detailed income and expenditure, regrouped according to the monthly GST returns filed by the taxpayer.

GSTR9A

The annual composition return form to be filed by every taxpayer enrolled in the composition scheme.

GSTR9C

This Audit form is filed by taxpayers liable to get their annual reports audited when their aggregate turnover exceeds ₹2 crores in a financial year.

GSTR10

Filed before cancelling GST registration, this final GST return contains the details of all supplies, liabilities, tax collected, and tax payable.

GSTR11

Variable tax return for taxpayers with UIN (Unique Identification Number), containing details of purchases made by foreign embassies and diplomatic missions for self-consumption during a particular month.

Using Bonds or LUT: A Deep Dive

LUT and bonds confirm exporter commitment, guiding when to opt for them and claiming IGST refunds for exports.

Due Dates for GST Returns

Staying compliant with GST due dates is vital to avoid late payment charges and interests. Fincto provides updated information on due dates for the financial years 2021-2022 and 2022-2023. Keeping clients informed of these updates can help taxpayers stay on top of their compliance requirements and ensure timely filing of GST returns.

GST Return Filing under the Composition Scheme

Taxpayers registered under the Composition Scheme must file taxes using CMP-08 every quarter and file GSTR-4 annually. The due date for the GST return for Composition Scheme registrants is the 18th of the month following each quarter.

Choose Fincto for a Seamless GST Return Filing Experience

Fincto provides a hassle-free GST return filing experience with the support of a team of dedicated experts. Fincto offers a seamless GST compliance journey. It's commendable to see such dedication to assisting taxpayers in their GST return filing processes.

What is a GST Certificate?

A GST Certificate is an important document issued by the Indian government which proves that a business is registered under GST. The certificate contains crucial information like the GST identification number, name, and address of the business. With a GST Certificate on hand, businesses can easily charge and collect GST, apply for loans, and participate in tenders.

GST Tax Rates

GST tax rates can range from 0% to 28% depending on the type of goods or services. essential items being taxed at 0%, while luxury items and certain services fall under the 28% bracket, gold is taxed at 3%, and crude oil and natural gas at 6%.Rates may vary, so it Is essential to check the current rates before transactions.

GSTIN

GSTIN (Goods and Services Tax Identification Number) is a unique identification number given to each GST taxpayer. It is used to verify GST registration on the GST portal.

Penalties for Failure to Register for GST

According to Section 122 of the CGST Act, there is a direct penalty for taxable persons failing to register for GST online.

Voluntary Registration Under GST for Companies with Turnover Below ₹20 Lakhs

Companies with turnover below ₹20 lakhs can voluntarily register for GST, enjoying advantages like input credit, inter-state selling with no restrictions, registering on e-commerce platforms, and gaining a competitive edge.

GST Return Filing

GST return filing is the process of submitting details of sales, purchases, and taxes to the government. All registered taxpayers under GST must must file returns regularly, regardless of transactions during the period.

With Fincto.io's expert guidance, you can navigate the GST registration process with confidence and focus on your business's growth and success.

Why Fincto

Fincto offers seamless tax filing with expert assistance, user-friendly platform, competitive pricing, and seasoned professionals for comprehensive guidance. Fincto offers hassle-free tax filing with ease and efficiency.

DIN and DSC for two Directors
Drafting of MoA & AoA
Registration fees and stamp duty
Incorporation certificate (COI)
Company PAN and TAN
Zero balance current account
GST Registration
EPF & ESIC Registration

Trust Fincto to simplify your business formation process, enabling a seamless transition from idea to a legally recognized entity. Get ready for a well-informed, growth-oriented entrepreneurial journey with Fincto.

Understanding Key Terms

Amendment

A modification to the existing provisions of a corporation's articles of incorporation

DSC (Digital Signature Certificate):

Issued by certifying authorities for electronic document signing.

Board of Directors

The elected governing body responsible for a corporation's operation. Certificate of Incorporation: The document filed to create a corporation

DIN (Director Identification Number):

A unique identification number for directors. Dissolution: The process that legally ends a corporation's existence

Incorporation

The act of forming a corporation under specific jurisdiction laws

Limited Liability Company (LLC)

An entity with limited personal liability and pass-through taxation

Limited Personal Liability

Protection from the debts and claims against a company

Name Reservation

The process to secure exclusive use of a corporate name for a specific period

Registered Office

The statutory address of a corporation

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