ITR-4 : Who Can File, Due Date, How to File for FY 2025-26 (AY 2026-27)

ITR-4 (Sugam) is an income tax return for resident individuals, HUFs and firms with total income up to Rs. 50 lakhs and having business or professional income under the presumptive taxation scheme as per Sections 44AD, 44ADA or 44AE along with salary, one house property and other incomes. 

Tax audit is generally not applicable for ITR-4 as it is designed for small taxpayers with business income. However, tax audit becomes applicable when income crosses certain limits. 

ITR-4 (Sugam) – Key Details You Should Know

Criteria	Details
Eligibility	Resident individuals, HUF and firm with business income under presumptive taxation.
Not Eligible	Business income not under presumptive scheme, capital gains, more then one house property
Due Date	31st August 2026
Income Limit	Rs. 50 lakh

Who Can File ITR-4?

ITR-4 is to be filed by the individuals/HUF/Partnership firm who fulfill the following conditions:

1. Is a Resident of India as per Income Tax Act
2. Having Business or Professional Income
3. Income from business calculated under Section 44AD or 44AE
4. Income from profession calculated under Section 44ADA
5. Long-term capital gains income on equity share & mutual funds up to Rs. 1.25 lakhs (having no brought-forward or carry-forward capital loss)
6. Should not have income from more than one house property

Who Cannot Not File ITR-4?

1. An individual whose total income exceeds rupees 50 lakhs.
2. An individual who is either a director in a company 
3. An individual who has invested in unlisted equity shares cannot use this form.
4. An individual, HUF or partnership firm who is required to maintain the books of accounts under the Income-tax Act, 1961.
5. Resident but not ordinarily residents (RNOR) and Non-residents
6. Individuals  who have earned income through the following means: Lottery, racehorses, legal gambling, etc.
7. Individual who has more than one house property
8. Taxable capital gains (short-term and long-term)
9. Agricultural income exceeding Rs 5,000
10. A resident that has assets (including financial interest in any entity) outside India or is a signing authority in any account located outside India
11. Individuals claiming relief of foreign tax paid or double taxation relief under section 90/90A/91
12. Gains from Virtual Digital Assets (Crypto currency)
13. Individuals for whom the TDS has been deducted under Section 194N

Due Date to File ITR-4 For FY 2025-26 (AY 2026-27)

The last date to file ITR-4 for FY 2025-26 (AY 2026-27) was changed in Budget 2026 to 31st August 2026 for non-audit taxpayers. ITR-4 filing due dates are as follows:

What is the Structure of ITR-4?

ITR-4 form is divided into parts as mentioned below: 

• PART A: General Information 
• PART B: Gross total income from the five heads of income 
• PART C: Deduction and total taxable income 
• PART D: Tax computation and tax status 
• Schedule BP: Details of income from Business-Section 44AD, 44ADA and 44EA 
• Information regarding turnover/Gross receipts reported for GST: Furnish the GSTIN 
• Financial Particulars of Business: Mention the asset and liabilities that you own 
• Schedule IT, TCS and TDS 1: Statement of payment of advance tax and tax on self-assessment, tax collected at source and TDS from salary 
• Schedule TDS: Statement of tax deducted at source on income other than salary. 
• Verification column: Declare that all your information furnished are true to your knowledge and add your signature. 

How to File ITR-4 using ClearTax?

Step 1: Log in or sign up on the ClearTax portal by entering your PAN, Date of Birth, and OTP to link your PAN and start filing.

Step 2: Complete OTP verification as most details such as name, income, etc. will be auto-filled. 

Step 3: Review and edit if needed and click “Continue to e-File”.

Step 4: Add income sources such as:

• Salary (if applicable)
• House Property
• Other Income (interest, dividends, etc.)
• Capital Gains (stocks, mutual funds, property, etc.)
• Business or Professional Income

Also add the presumptive income section i.e. Section 44AD for Businesses and Section 44ADA for professionals

Step 7: Claim deductions allowed and enter taxes already paid such as TDS, TCS, Advance Tax. 

Step 8: Now check Tax Summary, choose the right regime to maximise tax savings and click on “File Tax”

Step 9: After paying tax dues (if any) and filing ITR make sure to e-verify your return using Aadhar OTP. 

How to File ITR-4 Online on Income Tax Portal?

Step 1: Go to the Income Tax e-Filing portal.

Step 2: Log in to the e-filing portal by entering your user ID (PAN), Password, and Captcha code and click 'Login'.

Step 3: Click on the 'e-File' menu and click the 'Income Tax Return' link.

Step 4: Click on ‘Continue’.

Step 5: Read the instructions carefully and fill in all the applicable and mandatory fields of the online ITR form.

Step 6: Choose the appropriate Verification option in the 'Taxes Paid and Verification' tab.

Step 7: Choose any one of the following options to verify the income tax return:

• I would like to e-verify
• I would like to e-verify later within 30 days from the date of filing.

Step 8: Click on the 'Preview and Submit' button, Verify all the data entered in the ITR.

Step 9: 'Submit' the ITR.

Step 10: On Choosing the 'I would like to e-Verify' option, e-Verification should be done through any of the available methods by entering the EVC/OTP. 

Major Changes in ITR-4 Form from AY 2025-26

1. Inclusion of Long-Term Capital Gains (LTCG) Reporting

Taxpayers can now report long-term capital gains (LTCG) under section 112A (from listed equity shares and equity-oriented mutual funds) in ITR-1, provided:

• The total LTCG does not exceed Rs. 1.25 lakh, and
• There are no brought-forward losses or losses to be carried forward under the capital gains head.

Previously, any capital gains required filing ITR-2; this change allows more taxpayers with a very less LTCG to use the simpler ITR-1 form.

2. Additional Disclosure for Tax Regime Selection (Section 115BAC)

• The new tax regime is now the default for individuals, but eligible taxpayers can opt out and choose the old regime each year directly in the ITR.
• If a taxpayer opted out of the new regime in AY 2024-25, they must declare and confirm their choice or change it for AY 2025-26.
• First-time opt-outs in AY 2025-26 must provide Form 10-IEA acknowledgment details.
• Form 10-IEA must be filed before the due date of return filing.

3. Enhanced Deductions and Disclosures

• Deductions under Sections 80C to 80U must now be selected from a drop-down menu in the e-filing portal, and the exact clause/sub-section must be specified. This aims to improve accuracy and transparency.
• Income from retirement accounts maintained abroad (Section 89A) has new fields for better relief tracking.

4. Aadhaar Enrollment ID Removed

• The 28-digit Aadhaar Enrolment ID is no longer accepted. 
• The field now only accepts valid 12-digit Aadhaar Numbers.

5. Additional Column under Schedule TDS

• An additional column has been added under the Schedule - TDS Details to specify the section under which TDS is deducted.