Rule 12 - Return of income

Income-tax Rules, 1962

Following categories of persons are not eligible to file Form SUGUM (ITR-4)

(I) has assets (including financial interest in any entity) located outside India;

(IA) has signing authority in any account located outside India;

(IB) has income from any source outside India;

(IC) has income to be apportioned in accordance with provisions of section 5A;

(ID) is a director in any company;

(IE) has held any unlisted equity share at any time during the previous year;

(IF) has total income, exceeding fifty lakh rupees;

(IG) owns more than one house property, the income of which is chargeable under the head “Income from house property”;

(IH) has any brought forward loss or loss to be carried forward under any head of income;

(IJ) is assessable for the whole or any part of the income on which tax has been deducted at source in the hands of a person other than the assesse;

(II) has claimed any relief of tax under sections 90 or 90A or deduction of tax under section 91;

(III) ⁵⁵[has agricultural income, exceeding five thousand rupees;

(IV) has income taxable under section 115BBDA; or

(V) has income of the nature referred to in section 115BBE;

See: Rule 12 - Return of income as amended

Therefore, the following persons, excluding the persons listed above, shall be eligible to file SUGUM (ITR-4)

A person being an individual or

A Hindu undivided family, who is a resident other than not ordinarily resident, or

A firm, other than limited liability partnership firm, which is a resident;

deriving income under the head “Profits or gains of business or profession” and such income is computed in accordance with special provisions referred to in section 44AD, section 44ADA and section 44AE of the Act for computation of such income

 

Eligibility for SUGAM ITR-4: resident individuals, HUFs and resident firms with presumptive business income may use the simplified return. Eligibility to file Form SUGAM (ITR-4) is limited to resident individuals, resident HUFs (other than not ordinarily resident), and resident firms (excluding LLPs) deriving business or professional income computed under presumptive provisions of sections 44AD, 44ADA or 44AE. Explicit exclusions bar persons with foreign assets/signing authority/income, directorships, unlisted equity holdings in the previous year, income above the prescribed limit, more than one taxable house property, brought forward or carry forward losses, assessments where tax was deducted in another's hands, claims under double taxation provisions or deduction under section 91, certain agricultural income, and incomes taxable under specified special heads.