Income-Tax Return Form · AY 2026-27
ITR-4 Sugam —
Presumptive Tax, No Books
Who can file the ITR-4 Sugam form, the presumptive rates under Section 44AD, 44ADA and 44AE, when you must switch to ITR-3, the AY 2026-27 due dates and exactly how to file.
Updated for AY 2026-27 CA Reviewed Resident Individual / HUF / Firm
6% / 8%44AD deemed profit
50%44ADA professionals
Rs 50LITR-4 income cap
31 Aug 2026AY 2026-27 due date
Quick Answer
ITR-4 (Sugam) is the simplified return for a resident individual, HUF or partnership firm (not an LLP) opting for presumptive taxation under Section 44AD (business), 44ADA (professionals) or 44AE (goods transport). You declare a fixed percentage of turnover as income and keep no detailed books of account. You can file ITR-4 only if total income is up to Rs 50 lakh and turnover is within the presumptive limits. For AY 2026-27, the non-audit due date is 31 August 2026.
44AD business 6% / 8%
44ADA professionals 50%
Income cap Rs 50L
Due date 31 Aug 2026
New for AY 2026-27 — small LTCG now allowed in ITR-4
From AY 2026-27 you can file ITR-4 even with long-term capital gains under Section 112A up to Rs 1.25 lakh from listed equity shares or equity mutual funds, provided you have no capital loss to carry forward or set off. Earlier, any capital gain forced you onto ITR-2 or ITR-3.
At a glance
Presumptive Taxation Rates in ITR-4
ITR-4 covers three presumptive schemes. Each deems a fixed profit so you skip full books and, in most cases, a tax audit.
| Section | Who it covers | Turnover / Receipt limit | Deemed profit |
|---|---|---|---|
| 44AD | Small business — individual, HUF, firm | Rs 2 Cr (Rs 3 Cr if cash ≤ 5%) | 6% digital / 8% cash |
| 44ADA | Specified professionals (doctor, lawyer, CA, architect, etc.) | Rs 75 lakh gross receipts | 50% of receipts |
| 44AE | Goods-carriage operator (≤ 10 vehicles) | Per-vehicle basis; no turnover cap | Rs 1,000/ton or Rs 7,500/vehicle p.m. |
44AD/44ADA rates are the minimum deemed profit — you may declare higher. 44AE: Rs 1,000 per ton per month for heavy goods vehicles (> 12T), Rs 7,500 per vehicle per month for others.
The 5-year lock-in under Section 44AD
Once you opt into 44AD, if in any of the next 5 years you declare profit below 6%/8% and your total income exceeds the basic exemption limit, you must maintain books and get a tax audit under Section 44AB — and you are barred from 44AD for the next 5 assessment years. 44ADA has no such 5-year lock-in.
Eligibility
Who Can — and Cannot — File ITR-4
ITR-4 is only for residents on presumptive taxation. Any of the "cannot" triggers below pushes you to ITR-3 (business, full books) or ITR-2 (capital gains, no business).
You CAN file ITR-4 if
- Resident individual, HUF or firm (not LLP) with total income up to Rs 50 lakh
- Business under 44AD, profession under 44ADA, or transport under 44AE
- Salary / pension, one house property, and other-source income (interest, dividend)
- LTCG u/s 112A up to Rs 1.25 lakh with no carried-forward loss (new for AY 2026-27)
- Agricultural income up to Rs 5,000
You must use ITR-2 / ITR-3 if
- Total income exceeds Rs 50 lakh
- Turnover > Rs 2/3 Cr (44AD) or receipts > Rs 75L (44ADA)
- You are a company director or hold unlisted equity shares
- You have capital gains beyond the Rs 1.25L 112A limit
- You own more than one house property
- You have foreign income, foreign assets or claim foreign tax relief
- You are a non-resident or RNOR
Not sure whether ITR-4 or ITR-3 fits your income? Let a CA confirm before you file.
Talk to a Tax Expert →Which form
ITR-4 vs ITR-3 — Presumptive or Full Books
ITR-4
ITR-4 Sugam — presumptive
- Resident individual / HUF / firm only
- Income up to Rs 50 lakh
- Deemed profit (6%/8% or 50%) — no books
- No tax audit if profit ≥ prescribed rate
- Simplest; ideal for small traders & professionals
vs
ITR-3
ITR-3 — business / profession
- Any individual / HUF with business income
- No income ceiling
- Actual profit from full books of account
- Balance sheet & P&L schedules required
- Needed for capital gains, F&O, losses to carry forward
Worked example
How Presumptive Income Is Computed
A freelance consultant (44ADA) and a digital-payment trader (44AD) both skip books — the deemed profit is simply a percentage of receipts.
44ADA professional
Gross receiptsRs 40,00,000
Deemed rate50%
Presumptive incomeRs 20,00,000
Taxable business incomeRs 20,00,000
44AD digital trader
Turnover (all digital)Rs 80,00,000
Deemed rate6%
Presumptive incomeRs 4,80,000
Taxable business incomeRs 4,80,000
Slab tax then applies to this presumptive income after adding any salary or other income. See our income-tax slabs and income-tax calculator for the exact liability, and remember presumptive taxpayers still owe advance tax — payable in one instalment by 15 March.
Step by step
How to File ITR-4 Sugam
Gather dataTurnover, receipts, bank statements, 26AS/AIS
→
Compute presumptiveApply 6%/8% or 50% to receipts
→
Fill ITR-4Prefilled form on the e-filing portal
→
Pay self-assessment taxClear any balance before submitting
→
E-verifyAadhaar OTP within 30 days of filing
- PAN & Aadhaar (linked)
- Bank account details & IFSC
- Total turnover / gross receipts figures
- Form 26AS + AIS / TIS tax-credit statements
- Form 16 (if any salary income)
- Interest & dividend statements
- GST turnover (if registered)
- Advance / self-assessment tax challans
- Presumptive scheme selected (44AD / 44ADA / 44AE)
Deadlines
ITR-4 Due Dates & Late Fee — AY 2026-27
| Event | Date / Amount | Notes |
|---|---|---|
| ITR-4 due date (non-audit) | 31 Aug 2026 | Extended from 31 Jul for AY 2026-27 |
| Audit-case return | 31 Oct 2026 | Where a tax audit applies |
| Belated / revised return u/s 139(4)/(5) | 31 Dec 2026 | With late fee & interest |
| Updated return ITR-U u/s 139(8A) | Within 48 months | Budget 2025 extended from 24 to 48 months |
| Late fee u/s 234F | Rs 5,000 | Rs 1,000 if total income ≤ Rs 5 lakh |
Interest u/s 234A/B/C also applies on any unpaid tax. Presumptive taxpayers pay advance tax in a single instalment by 15 March.
Beat the 31 August deadline — get your ITR-4 prepared, checked and filed by a CA.
Get ITR-4 Filing Help →Government sourcesITR forms & utilities: incometax.gov.in · Sections 44AD / 44ADA / 44AE, Income-tax Act 1961 · Late fee: Section 234F; ITR-U: Section 139(8A) (Budget 2025 — 48 months) · Due dates: CBDT notifications for AY 2026-27
People also ask
ITR-4 Sugam — Frequently Asked Questions
Basics
What is ITR-4 Sugam?
ITR-4 (Sugam) is a simplified income-tax return for resident individuals, HUFs and partnership firms (not LLPs) who opt for presumptive taxation under Section 44AD (business), 44ADA (professionals) or 44AE (goods transport). You declare a fixed percentage of turnover or receipts as income without maintaining detailed books of account. It can be used only if total income is up to Rs 50 lakh and turnover is within the presumptive limits.
Who should file ITR-4 for AY 2026-27?
A resident individual, HUF or firm (other than an LLP) with total income up to Rs 50 lakh whose income comes from a presumptive business (44AD), a presumptive profession (44ADA) or goods transport (44AE), optionally along with salary/pension, one house property and income from other sources such as interest and dividends. For AY 2026-27 you may also have LTCG under Section 112A up to Rs 1.25 lakh with no carried-forward loss.
Can a partnership firm file ITR-4?
A resident partnership firm (not an LLP) can file ITR-4 for presumptive business income under Section 44AD or transport under 44AE. However, a firm cannot use Section 44ADA — the professional presumptive scheme is available only to resident individuals and HUFs. LLPs cannot file ITR-4 at all and must use ITR-5.
Section 44AD
What is Section 44AD presumptive taxation?
Section 44AD lets an eligible small business (individual, HUF or firm — not an LLP or company) with turnover up to Rs 2 crore declare 6% of digital receipts or 8% of cash receipts as net profit, without maintaining full books. If receipts and payments in cash do not exceed 5% of turnover, the limit rises to Rs 3 crore. It suits small traders, shopkeepers and contractors.
Can I show less than 6% profit under Section 44AD?
Yes, but with consequences. If you declare profit below 6% (digital) or 8% (cash) of turnover and your total income exceeds the basic exemption limit, you must maintain books and get a tax audit under Section 44AB. Once you opt out of 44AD after having opted in, you cannot re-enter the scheme for the next 5 assessment years.
What is the turnover limit for Section 44AD in AY 2026-27?
The turnover limit is Rs 2 crore. It is enhanced to Rs 3 crore if aggregate cash receipts (and cash payments) do not exceed 5% of total turnover — encouraging digital transactions. Above these limits you cannot use 44AD or ITR-4 and must file ITR-3 with regular books.
Section 44ADA
Who is eligible for Section 44ADA for professionals?
Section 44ADA is available to specified professionals — doctors, lawyers, engineers, architects, accountants, interior designers, technical consultants and film artists — whose gross receipts do not exceed Rs 75 lakh a year (raised from Rs 50 lakh). Under 44ADA, 50% of gross receipts is deemed net profit. The professional must be a resident individual or HUF; partnership firms are not eligible.
What is the receipts limit under Section 44ADA?
Gross professional receipts must not exceed Rs 75 lakh for the year. The higher Rs 75 lakh threshold (up from Rs 50 lakh) applies only where cash receipts do not exceed 5% of total gross receipts; otherwise the effective limit stays at Rs 50 lakh. Above the limit you must use ITR-3 with actual books of account.
Section 44AE
How is income taxed under Section 44AE for transporters?
Section 44AE covers goods-carriage operators owning up to 10 vehicles at any time in the year. Income is deemed at Rs 1,000 per ton of gross vehicle weight per month for heavy goods vehicles (over 12 tonnes) and Rs 7,500 per vehicle per month for other vehicles, per vehicle for the months held. There is no turnover ceiling, but owning more than 10 vehicles disqualifies you.
Audit
Is a tax audit required if I file ITR-4?
Usually not. If you declare income at or above the prescribed presumptive rate (6%/8% for 44AD, 50% for 44ADA), no tax audit is needed even if income is above Rs 50 lakh (though then you cannot use ITR-4). A tax audit under Section 44AB becomes mandatory only if you declare less than the prescribed profit and your gross total income exceeds the basic exemption limit.
ITR-4 vs ITR-3
When should I use ITR-3 instead of ITR-4?
Switch to ITR-3 when you have capital gains beyond the Rs 1.25 lakh 112A limit, are a company director, hold unlisted equity shares, turnover exceeds Rs 2/3 crore (44AD) or receipts exceed Rs 75 lakh (44ADA), total income exceeds Rs 50 lakh, you want to carry forward business losses, or you opt out of presumptive taxation and maintain full books.
Can I report capital gains in ITR-4 for AY 2026-27?
Only in a limited way. From AY 2026-27, ITR-4 allows long-term capital gains under Section 112A up to Rs 1.25 lakh from listed equity shares or equity mutual funds, provided you have no capital loss to carry forward or set off. Any other capital gains, or LTCG above Rs 1.25 lakh, require ITR-2 or ITR-3.
Due Dates
What is the due date to file ITR-4 for AY 2026-27?
For non-audit taxpayers the due date to file ITR-4 for AY 2026-27 (FY 2025-26) is 31 August 2026 (extended from the usual 31 July for this year). Where a tax audit applies, the due date is 31 October 2026. A belated or revised return under Section 139(4)/(5) can be filed up to 31 December 2026 with late fee and interest.
What is the late fee for filing ITR-4 after the due date?
A late-filing fee under Section 234F applies: Rs 5,000 if the return is filed after the due date, reduced to Rs 1,000 if total income does not exceed Rs 5 lakh. Interest under Sections 234A/B/C may also apply on any unpaid tax. If you miss even the 31 December belated deadline, you can only file an updated return (ITR-U) within 48 months of the end of the assessment year.
Do presumptive taxpayers have to pay advance tax?
Yes, but with relief on instalments. Taxpayers under Section 44AD or 44ADA pay their entire advance tax in a single instalment by 15 March of the financial year, instead of the usual four quarterly instalments. Missing this attracts interest under Section 234C. Any remaining balance is paid as self-assessment tax before filing ITR-4.
Filing
How do I file ITR-4 on the income-tax portal?
Log in at incometax.gov.in, choose ITR-4 under e-file, and use the prefilled data. Enter your turnover/gross receipts, confirm the presumptive income (6%/8% or 50%), add salary, house-property and other-source income, verify tax credits against Form 26AS and AIS, pay any self-assessment tax, submit and e-verify within 30 days using Aadhaar OTP. TaxClue can prepare and file it for you.
What documents do I need to file ITR-4?
You mainly need your PAN and Aadhaar, bank details, total turnover or gross-receipt figures, Form 26AS and AIS/TIS, any Form 16 for salary, interest and dividend statements, GST turnover if registered, and advance/self-assessment tax challans. Because it is presumptive, you do not upload detailed books, but keep records to support the turnover declared.
Done-for-you
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