RAJG (Freelance) (30 Points)
26 June 2025Following is source of incomes.
a. Business Income - used presumptive taxation earlier years.
b. FD / SB interest.
c. mutual fund LTCG approx 70k (less than 1.25L).
d. Salary( Pension amount- 6K INR per annum),Dividend amount 100 Rs(this year).
Last year used ITR3 due to mutual fund LTCG.
This year hope ITR4 can be used to accommodate all above transactions as LTCG is less than 1.25 L P/A.
Kindly confirm whether ITR4 can be used this year.
Rama chary Rachakonda
(Master in Accounts & high court Advocate)
(8573 Points)
Replied 26 June 2025
You can use ITR-4 (Sugam) for the current assessment year, given your income sources and the long-term capital gains (LTCG) from mutual funds being less than ₹1.25 lakh. Here's a breakdown.
- *Eligibility for ITR-4*: This form is suitable for individuals and entities with business income under presumptive taxation schemes, having total income up to ₹50 lakh, and LTCG under Section 112A up to ₹1.25 lakh without any capital losses to carry forward.
- *Income Sources Covered*: ITR-4 can accommodate your income sources, including: - *Business Income*:
From presumptive taxation - *Interest Income*: From fixed deposits (FD) and savings bank (SB) accounts - *LTCG*: Up to ₹1.25 lakh from mutual funds - *Salary/Pension*: ₹6,000 per annum - *Dividend Income*: ₹100 - *Key Considerations*:
Ensure your total income doesn't exceed ₹50 lakh, and you don't have any capital losses to carry forward.
Given your situation, ITR-4 seems suitable, but it's always a good idea to consult a tax professional to confirm and ensure compliance with all tax regulations.
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