Income Tax Return for Non-Salaried Individual, HUF and Firms (Form 3 & 4)
ITR Form 3 and ITR Form 4 (Sugam) are designed for non-salaried individuals, Hindu Undivided Families (HUFs), and firms. ITR Form 3 is used by individuals and HUFs with income from business or profession, as well as income from salary, multiple house properties, capital gains, and other sources, making it suitable for complex financial situations. ITR Form 4 (Sugam) is for individuals, HUFs, and firms with income up to ₹50 lakh, computing business income under presumptive taxation schemes (Sections 44AD, 44ADA, or 44AE), offering a simplified compliance process for straightforward financial scenarios.
KBB & CO can help you file an income tax return in 1-2 days.
Contact You
Our relationship manager will contact you, explain the process and clear your queries.
Documentation
You will provide the relevant documents according to package and make payment.
Registration Process
We will prepare the computation of income and tax and get it approved from you.
Company Kit
The ITR will be filed and final documents with invoice will be shared with you over email.
WHAT WILL YOU GET
ITR V (ITR submission form)
ITR Form (detailed ITR form filed online)
Computation
Why Choose KBB & CO ?
Income Tax Return for Salaried Individual (Form 1 & 2)
- (Assessee with business income under presumptive rules and income from other sources)
- (Assessee with business income under presumptive rules, income from other sources, salary income)
- Assessee with business income under presumptive rules, income from other sources, salary income and (income from capital gains)
FAQ's
Most Frequent Asked Questions
The income tax act allows small businesses and professionals to declare there income from business or profession at a certain percentage of turnover for the year, without need of providing financials for the year. Following chart can help understand the provisions for presumptive taxation.
Small Businessmen | Professionals | Transporters | |
Applicable Income Tax Section | Section 44AD | Section 44ADA | Section 44AE |
Eligible business | Entities in any business excluding : | Professionals offering: | Entities in the business of: |
Business of plying, hiring or leasing goods carriages | Legal services | Hiring, plying or leasing of goods carriages | |
Agency business | Technical consultancy |
| |
With income as commission or brokerage | Interior decoration |
| |
| Engineering and architectural |
| |
| Medical |
| |
| Any other profession specified by CBDT |
| |
Eligibility criteria, Maximum Turnover Limit | Turnover up to ₹ 2 Cr in a year | Annual receipts of not more than ₹ 50 Lakh in a year | Owning not more than 10 goods vehicles during the year |
Presumptive computation of taxable income | 8% of total receipts provided that non cash and electronic receipts shall be charged at 6% of gross turnover during the year. A higher income can be declared | 50% of gross receipts. A higher income of more than 50% can be declared | ₹ 7,500 per vehicle per month or part thereof based on the duration for which the vehicle was owned by the person during the year |
In the case of a businessman, if his total turnover from business exceeds Rs 2 crore or he declares profit lower than 8% of turnover, he is liable to an audit under the Income-tax Act under Section 44AB. In case he is a professional, if his gross receipts exceed Rs 50 lakhs or declares profit lower than 50% of turnover, he is liable for a tax audit.
If you have opted for the presumptive scheme of tax, you may not be liable to pay advance tax every quarter but you must ensure you are paying all your advance taxes on or before 15 March of the concerned financial year. Further, any taxes paid before the 31 March will be considered as advance taxes only.
No. Once a person declares the prescribed percentage of his gross receipts or turnover as income, he cannot once again claim any other expenses as a deduction. But yes the assessee can claim deductions u/s 80C to 80U on account of investment from his gross total income.
No. A person opting for presumptive income scheme under Section 44AD, 44ADA, 44AE etc, need not maintain any books of accounts.
Once you opt for this scheme, you must follow it for the next 5 years. Opting out of it for any 1 year during these 5 years will make you ineligible to again opt for it the 5 years immediately following the year when you opted out of it.
As per income tax laws, ITR must be mandatorily filed if a resident individual's gross total income (i.e. total income before deduction u/s 80C to 80U) during the financial year exceeds the basic exemption limit. The basic exemption limit for an individual depends on his/her age. For FY 2020-21, the basic exemption limit is as follows:
- Age below 60 years Rs 2,50,000/-
- Between 60 years and 80 years (Senior citizen) Rs 3,00,000/-
- 80 years and above (Super senior citizen) Rs 5,00,000/-
A Financial Year (FY) is the period between 1 April and 31 March – the year in which you earn an income. The assessment year (AY) is the year that comes after the FY. This is the time in which the income earned during FY is assessed and taxed.
Example: For period 1st April 2020 to 31st March 2021, the FY will be FY 2020-21 and the Assessment Year will be AY 2021-22
The last date for filing the income tax return is generally on 31 July of the assessment year (AY). The ITR must be filed for income earned from 1 April 2020 to 31 March 2021, latest by 31 July 2021 unless extended by the government
The penalty for late filing of tax returns for is Rs 5,000 (on filing the return after the due date but on or before 31st December) and INR 10,000 (on the filing of return after 31st December to 31st March).
80C allows deduction for investment made in PPF , EPF, LIC premium , Equity linked saving scheme, principal amount payment towards home loan, stamp duty and registration charges for purchase of property, Sukanya smriddhi yojana (SSY) , National saving certificate (NSC) , Senior citizen savings scheme (SCSS), ULIP, tax saving FD for 5 years, Infrastructure bonds etc
Yes, both husband and wife can claim the deduction for interest and principal, provided the property is jointly owned and the loan is also jointly taken by both. The deduction will be available in ratio of ownership of property.
Yes, the additional deduction of Rs. 50,000/- under Section 80CCD(1B) is available to assessee over and above the benefit of Rs. 1.50 Lakhs available as a deduction under Sec 80C.
Yes the deduction can be claimed while filing of income tax return.
Yes, it is mandatory to report all incomes in the income tax return. It does not matter whether the income is exempt from tax or taxable. Correct and complete reporting of all types of incomes is essential to calculate accurate tax liability and file correct income tax return.
The following are the deductions and exemptions you cannot claim under the new tax system:
- The standard deduction of Rs 50,000, professional tax and entertainment allowance on salaries
- Leave Travel Allowance (LTA)
- House Rent Allowance (HRA)
- Minor child income allowance
- Helper allowance
- Children education allowance
- Other special allowances [Section10(14)]
- Interest on housing loan on the self-occupied property or vacant property (Section 24)
- Chapter VI-A deduction (80C,80D, 80E and so on)
- Deduction from family pension income
Decision for which regime is better can only be made on the basis of facts and details of the case. Depending on which investments have been made by the assessee, the decision can be made as to which tax regime will involve lower tax expense for the assessee.
Yes, a salaried taxpayer can opt-in and opt-out of tax regime every year. That means salaried assessee can choose the new tax regime in one year and choose the regular tax regime in another year.
A non-salaried taxpayer cannot opt-in and opt-out of the new tax regime every year. Once a non-salaried opts out of the new tax regime, they cannot opt-in again for the new tax regime in the future.