Explore the complete guide to ITR-4 (Sugam) for AY 2026-27. Understand who can file, the latest changes, deadlines, and step-by-step filing instructions.
Who can File ITR-4?
Who cannot File ITR-4?
Due Date to File ITR-4
Structure of ITR-4
Filing ITR-4 on Income Tax Portal
Major Changes in ITR-4 Form
FAQs on ITR-4 (Sugam)
Eligibility Criteria
ITR-4 is designed for resident individuals, HUFs, and firms with specific income sources.
Resident individuals, HUFs, and firms with total income up to ₹50 lakhs.
Income from business or profession under presumptive taxation (Sections 44AD, 44ADA, 44AE).
Income from one house property and other sources like interest.
Income Sources
Eligible income sources include business, profession, and limited capital gains.
Business income calculated under Section 44AD or 44AE.
Professional income calculated under Section 44ADA.
Long-term capital gains on equity shares and mutual funds up to ₹1.25 lakhs.
Additional Conditions
Other conditions that must be met to file ITR-4.
No more than two house properties.
No brought-forward or carry-forward capital losses.
Not a director in a company or invested in unlisted equity shares.
Tax Audit Applicability
Understand when a tax audit is required.
Tax audit not required if income is below ₹50 lakhs.
Audit required if turnover exceeds ₹2 crores for business.
Audit required if professional receipts exceed ₹50 lakhs.
Ineligible Individuals
Certain individuals are not eligible to file ITR-4.
Total income exceeding ₹50 lakhs.
Director in a company.
Invested in unlisted equity shares.
Income Restrictions
Specific income types disqualify individuals from using ITR-4.
Income from more than two house properties.
Agricultural income exceeding ₹5,000.
Gains from virtual digital assets.
Resident Status
Certain resident statuses are not eligible.
Resident but not ordinarily resident (RNOR).
Non-residents.
Residents with foreign assets or signing authority abroad.
Other Disqualifications
Additional conditions that prevent filing ITR-4.
Income from lottery, racehorses, or legal gambling.
Claiming relief under sections 90/90A/91.
TDS deducted under Section 194N.
Non-Audit Taxpayers
Deadline for taxpayers not requiring an audit.
Due date: 31st August 2026.
Applies to individuals, HUFs, and firms with presumptive income.
Late filing attracts a penalty under Section 234F.
Audit Taxpayers
Deadline for taxpayers requiring an audit.
Due date: 31st October 2026.
Applies to businesses with turnover exceeding ₹2 crores.
Audit report must be filed before the ITR.
Consequences of Late Filing
Penalties and interest applicable for late filing.
Penalty up to ₹10,000 under Section 234F.
Interest under Section 234A for delayed tax payment.
Losses cannot be carried forward if filed late.
Extension Possibilities
Circumstances under which deadlines may be extended.
Government may extend deadlines due to exceptional circumstances.
Extensions are announced via official notifications.
Check the Income Tax Department's website for updates.
General Information
Basic details required in Part A of the form.
PAN, name, and address of the taxpayer.
Filing status and residential status.
Bank account details for refunds.
Income Details
Income reporting in Part B of the form.
Income from salary, house property, and other sources.
Presumptive income from business or profession.
Details of exempt income.
Deductions and Taxable Income
Deductions claimed and taxable income computation in Part C.
Deductions under Chapter VI-A like Section 80C, 80D.
Total taxable income after deductions.
Tax computation based on income slabs.
Tax Computation and Status
Tax liability and payment details in Part D.
Total tax liability and advance tax paid.
Self-assessment tax details.
Refund or payable amount.
Schedules and Verification
Additional schedules and verification requirements.
Schedule BP for business income details.
Schedule TDS for tax deducted at source.
Verification section for taxpayer declaration.
Accessing the Portal
Steps to access the Income Tax e-filing portal.
Visit the official Income Tax e-filing website.
Log in using your PAN and password.
Navigate to the 'File Income Tax Return' section.
Filing Process
Step-by-step guide to filing ITR-4 online.
Select the assessment year and ITR form type.
Fill in the required details in each section.
Upload necessary documents and validate the form.
Verification and Submission
Final steps to complete the filing process.
Choose the verification method: Aadhaar OTP, EVC, or DSC.
Submit the ITR and receive the acknowledgment.
Download and save the ITR-V for records.
Common Errors to Avoid
Tips to prevent common filing mistakes.
Ensure all income sources are reported accurately.
Double-check bank account details for refunds.
Verify deductions and exemptions claimed.
Inclusion of Long-Term Capital Gains (LTCG) Reporting
New reporting requirements for LTCG.
Report LTCG on equity shares and mutual funds up to ₹1.25 lakhs.
No carry-forward of capital losses allowed.
Separate section for LTCG reporting.
Investments Field
New fields for reporting investments.
Mandatory disclosure of investments in equity and mutual funds.
Details of tax-saving investments under Section 80C.
Separate section for reporting other financial assets.
Additional Disclosure for Tax Regime Selection (Section 115BAC)
New disclosure requirements for tax regime selection.
Option to choose between old and new tax regimes.
Details of deductions foregone under the new regime.
Declaration of tax regime choice in the form.
Enhanced Deductions and Disclosures
Changes in deduction limits and disclosure requirements.
Increased deduction limits under Section 80D for health insurance.
Mandatory disclosure of high-value transactions.
Additional fields for reporting foreign income and assets.
Aadhaar Enrolment ID Removed
Changes in Aadhaar-related requirements.
Aadhaar enrolment ID no longer required for filing.
Linking of PAN with Aadhaar mandatory.
Aadhaar OTP option available for verification.
Additional Column under Schedule TDS
New column added for TDS reporting.
Separate column for TDS on interest income.
Details of TDS on salary and other incomes.
Reconciliation of TDS with Form 26AS.
What is the due date for filing ITR-4 for FY 2025-26?
The due date for filing ITR-4 for non-audit taxpayers is 31st August 2026. For taxpayers requiring an audit, the deadline is 31st October 2026.
Can I file ITR-4 if I have income from more than two house properties?
No, ITR-4 cannot be filed if you have income from more than two house properties. You should consider filing ITR-2 or ITR-3 instead.
What are the penalties for late filing of ITR-4?
Late filing of ITR-4 attracts a penalty of up to ₹10,000 under Section 234F. Additionally, interest under Section 234A may be applicable for delayed tax payments.
Is Aadhaar mandatory for filing ITR-4?
Yes, linking PAN with Aadhaar is mandatory for filing ITR-4. However, the Aadhaar enrolment ID is no longer required in the form.
How do I choose between the old and new tax regimes in ITR-4?
You can select your preferred tax regime under Section 115BAC in the ITR-4 form. Ensure to disclose any deductions foregone if opting for the new regime.
What is the presumptive taxation scheme?
The presumptive taxation scheme allows eligible taxpayers to declare income at a prescribed rate under Sections 44AD, 44ADA, or 44AE, simplifying tax compliance.
Can non-residents file ITR-4?
No, non-residents and residents but not ordinarily residents (RNOR) cannot file ITR-4. They should consider other applicable ITR forms.
What documents are required for filing ITR-4?
Documents like Form 16, Form 26AS, bank statements, and proof of deductions (e.g., insurance premium receipts) are essential for filing ITR-4.
How do I report long-term capital gains in ITR-4?
Long-term capital gains up to ₹1.25 lakhs on equity shares and mutual funds should be reported in the designated section of the ITR-4 form.
What happens if I miss the ITR-4 filing deadline?
Missing the ITR-4 filing deadline results in penalties, interest on tax dues, and the inability to carry forward losses. File as soon as possible to minimize penalties.