ITR 4, named Sugam, is the return for a resident individual, HUF or partnership firm (not an LLP) that declares business or professional income on the presumptive basis of section 44AD, 44ADA or 44AE and has total income up to ₹50 lakh. A kirana shop, a tuition teacher, a freelance designer or a truck owner with a few vehicles often fits here.
A non-audit ITR-4 for FY 2025-26 (AY 2026-27) had to be filed by 31 August, after the Finance Act, 2026 moved business and professional returns from 31 July. A belated return is possible until 31 December. If you keep full books or have a loss, use ITR-3 instead; the forms overview compares them all.
Quick facts
Who files
Resident individuals, HUFs and firms other than LLPsIncome basis
Presumptive: 44AD, 44ADA or 44AEIncome limit
Total income up to ₹50 lakhOther income allowed
Salary, up to two houses, interest, 112A LTCG up to ₹1.25 lakhDue date
31 August for AY 2026-27Advance tax
Whole amount by 15 MarchNot allowed
LLPs, directors, foreign assets, losses carried forward
ITR 4 for whom: the presumptive schemes
| Section | Who uses it | Income declared | Turnover or receipt limit |
|---|---|---|---|
| 44AD | Traders, shops, small manufacturers, contractors | 8% of turnover, 6% of digital receipts | ₹2 crore, or ₹3 crore if cash receipts are 5% or less |
| 44ADA | Doctors, lawyers, engineers, architects, accountants, consultants and similar | 50% of gross receipts | ₹50 lakh, or ₹75 lakh if cash receipts are 5% or less |
| 44AE | Owners of up to ten goods carriages | ₹7,500 a vehicle a month; heavy vehicles ₹1,000 a ton of gross weight a month | No more than ten vehicles at any time |
You may always declare a higher figure than the presumptive rate. Declaring less usually means keeping books and, in many cases, a tax audit, and then ITR-3 applies. So, ITR 4 is for whom? The ITR 4 form suits anyone for whom the fixed rate is close to real profit.
Who cannot file ITR-4
| Situation | Use instead |
|---|---|
| Total income above ₹50 lakh | ITR-3, or ITR-5 for a firm |
| LLP | ITR-5 |
| Company directorship, or unlisted shares held | ITR-3 |
| Foreign assets, foreign income or non-resident status | ITR-3 |
| Short term capital gains, or LTCG beyond ₹1.25 lakh under 112A | ITR-3 |
| Business loss or brought forward loss to set off | ITR-3 |
| Three or more house properties | ITR-3 |
For AY 2026-27 the form takes up to two house properties, up from one, and small 112A gains with no losses brought forward.
ITR 4 means simple figures: two worked examples
A grocery shop under 44AD. Turnover ₹80,00,000, all received through bank transfer and UPI. Presumptive income at 6% = ₹4,80,000. With no other income, the new regime slab tax is ₹4,000 (₹80,000 above ₹4 lakh at 5%), which the 87A rebate wipes out. Tax payable: nil.
A freelance software consultant under 44ADA. Receipts ₹40,00,000, all by bank. Income at 50% = ₹20,00,000. New regime tax: ₹20,000 + ₹40,000 + ₹60,000 + ₹80,000 (16 to 20 lakh at 20%) = ₹2,00,000. Cess 4% = ₹8,000. Total ₹2,08,000, less TDS of 10% on fees deducted by clients. The balance was due as advance tax by 15 March of FY 2025-26.
Due date for ITR 4 and the ITR 4 last date
| Event | Date |
|---|---|
| Return due, no audit | 31 August for AY 2026-27 |
| Belated filing allowed until | 31 December for AY 2026-27 |
| Late fee under 234F | ₹5,000; ₹1,000 where income does not exceed ₹5 lakh |
| Advance tax for 44AD or 44ADA | 100% by 15 March of FY 2025-26 |
| Updated return | Within 48 months after AY 2026-27 ends |
Interest under section 234A runs at 1% a month on unpaid tax after the due date. Details are in the deadline calendar.
ITR 4 filing steps
- Access your account on the e-filing portal.
- Select File Income Tax Return, which sits in the e-File menu below Income Tax Returns.
- Select AY 2026-27 with online filing, your status, and ITR-4.
- Check prefilled details, including TDS on fees or contracts from AIS and Form 26AS.
- In Schedule BP choose the section, enter turnover split between cash and digital, and the presumptive income.
- Fill the few balance sheet items asked: debtors, creditors, stock and cash.
- Pay what is due, file it, and complete e-verification inside 30 days.
Mistakes small businesses make in ITR-4
| Mistake | Fix |
|---|---|
| Putting all turnover in cash when it was digital | Split it; digital receipts qualify for 6% |
| Using ITR-4 as an LLP | LLPs must file ITR-5 |
| Ignoring TDS shown in AIS | Claim it and match the gross receipts it implies |
| Skipping the 15 March advance tax | Pay it; interest under 234B and 234C applies |
| Leaving 44AD soon after choosing it | Opting out within five years of choosing it blocks the scheme for the next five years |
A plain summary for small businesses and professionals, not a ruling on your return. Limits get revised in Budgets; recheck them on the official portal or with your chartered accountant.
ITR-4 and the 2025 Act
FY 2025-26 income is filed in ITR-4 under the 1961 Act. Receipts from 1 April 2026 count in tax year 2026-27 under the Income-tax Act, 2025, which keeps presumptive taxation for small businesses and professionals. Its own return forms are due to be prescribed by the Income-tax Rules, 2026. Read the 44AD guide and the 44ADA guide for the scheme rules.
Sources we checked
- Income-tax Act, 1961, sections 44AD, 44ADA and 44AE
- Income-tax Act, 1961, section 139(1)
- Finance Act, 2026
- CBDT notification of ITR-4 for AY 2026-27
Frequently asked questions
Who is ITR 4 meant for, and what is ITR 4 in income tax terms?
ITR-4 Sugam is for resident individuals, HUFs and firms other than LLPs who declare business or professional income under 44AD, 44ADA or 44AE and have total income up to ₹50 lakh.
What is the due date for ITR 4 for AY 2026-27?
For a non-audit case it was 31 August for AY 2026-27. A belated ITR-4 can be filed until 31 December with the late fee.
Can I use ITR-4 if I also draw a salary?
Yes, if the person also has presumptive business or professional income and meets the other conditions. Salary goes in the salary part of the same form.
Who can file ITR 4 with capital gains?
Only 112A long term gains of ₹1.25 lakh or less can be shown, and only if no earlier losses are being carried. Any other capital gain needs ITR-3.
Is a balance sheet needed in ITR-4?
No full balance sheet is needed. The form asks for a few figures such as debtors, creditors, stock and cash in hand.