New ITR-4 requires disclosure of investments for presumptive taxpayers
Filing under Section 44AD or 44ADA? You must now report your investments in the ITR. Here's everything you need to know — and how to stay safe.
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Key Update
Taxpayers opting for presumptive taxation under ITR-4 (Sugam) must now report details of their investments in the income tax return.
Objective
To curb misuse of the presumptive scheme by aligning declared income with actual investments and asset creation.
Applicability
Sections 44AD & 44ADA
Business
Annual turnover up to ₹2 crore
Professional
Gross receipts up to ₹75 lakh
Covers: Doctors, Chartered Accountants, Lawyers, Architects, Consultants
Presumptive Income Norms
⚠️ If income is declared below these limits, audit becomes mandatory.
How It Works
- 1Taxpayer files ITR-4 with investment disclosures
- 2Data is cross-verified using AIS and other sources
- 3Income is matched with spending and asset patterns
- 4Mismatches may trigger scrutiny or tax action
Why It Matters
- Increases monitoring of potential tax evasion
- Ensures income reflects actual financial capacity
- Prevents under-reporting with high-value investments
Penalty Risk
of tax payable
of misreported income
tax + surcharge + cess
Mis-reporting can wipe out years of savings. Get your ITR-4 reviewed by a qualified CA before filing.
Key Takeaways
Note: Always refer to the latest ITR-4 instructions & CBDT updates or consult your tax advisor.
File ITR-4 the right way — with expert hands.
CA Sonali Verma and team have helped hundreds of presumptive taxpayers file accurately, avoid scrutiny and save tax legally.
Sonali & Associates · Chartered Accountant (ICAI Member) · Sai Bhawan-164, Kanjari Sarai, Near Biharo Ka Mandir, Moradabad-244001, Uttar Pradesh, India