ITR-4 (Sugam) for AY 2026-27: who can file and how
ITR-4 is the simplest return for small businesses and professionals who declare income on a presumptive basis. It saves keeping full books, but it has strict eligibility rules, and filing it when you do not qualify makes the return defective.
Reviewed by Vijay Dhawan, Managing Partner, LexVerge LLP, on · Published
Quick answer
ITR-4 (Sugam) can be filed by a resident individual, HUF or partnership firm (not an LLP) with total income up to ₹50 lakh that includes presumptive income from business or profession under sections 44AD, 44ADA or 44AE. Salary, pension, interest, up to two house properties (a change for AY 2026-27, notified in Notification No. 45/2026) and long-term gains on listed shares or equity funds up to ₹1.25 lakh can be included. For FY 2025-26 the due date was 31 August 2026; a belated return can be filed until 31 December 2026.
Presumptive or books? The free presumptive tax calculator compares the tax on both routes for 2026-27.
Who can and cannot use ITR-4
| Can file ITR-4 | Cannot file ITR-4 |
|---|---|
| Resident individuals, HUFs and firms other than LLPs | Non-residents and LLPs |
| Total income up to ₹50 lakh | Total income above ₹50 lakh |
| Presumptive income under 44AD, 44ADA or 44AE | Business income computed from regular books |
| Salary or pension, up to two house properties, interest and other sources | Directors of a company, or holders of unlisted equity shares |
| Long-term capital gains under 112A up to ₹1.25 lakh | Other capital gains, or 112A gains above ₹1.25 lakh |
| Agricultural income up to ₹5,000 | Agricultural income above ₹5,000, foreign assets or income, or deferred tax on ESOPs |
If you fall outside ITR-4, the usual alternatives are ITR-3 for business income or ITR-2 for capital gains without business income. Our which ITR form guide walks through the choice.
Presumptive income at a glance
ITR-4 is built around the presumptive schemes: section 44AD for small businesses, 44ADA for specified professionals and 44AE for goods carriage owners. From tax year 2026-27 these schemes are in section 58 of the Income-tax Act, 2025. The limits, the deemed profit rates and the effect of cash receipts are explained in our guides to section 44AD and section 44ADA.
Dates and late filing
| Item | FY 2025-26 (AY 2026-27) |
|---|---|
| Due date, business or professional income without a tax audit | 31 August 2026 |
| Belated or revised return | Until 31 December 2026 |
| Late fee | ₹5,000, or ₹1,000 if total income is up to ₹5 lakh |
| Advance tax for presumptive income | 100% by 15 March of the tax year |
See the full calendar in our ITR due dates guide.
Frequently asked questions
Who can file ITR-4 for AY 2026-27?
Resident individuals, HUFs and firms other than LLPs with total income up to ₹50 lakh that includes presumptive business or professional income under sections 44AD, 44ADA or 44AE.
Can I file ITR-4 with two house properties?
Yes, for AY 2026-27. Notification No. 45/2026 changed the ITR-4 eligibility from one house property to two.
Can capital gains be reported in ITR-4?
Only long-term capital gains under section 112A, on listed shares and equity funds, up to ₹1.25 lakh. Other capital gains need ITR-2 or ITR-3.
Can a director file ITR-4?
No. A director of a company, or anyone holding unlisted equity shares, cannot use ITR-4.
What is the due date for ITR-4 for FY 2025-26?
31 August 2026 for business or professional income without a tax audit. A belated return can be filed until 31 December 2026 with a late fee.
ITR for Business and Freelancers from ₹1,199, by a CA.
P&L, presumptive-scheme evaluation and advance tax, filed by a CA.
Professional fee shown; government charges at actuals, quoted in writing before you pay. GST at 18% extra.
See what is included and the full priceBusiness or freelance income?
We test whether presumptive tax suits you and file ITR-4 or ITR-3 for you, from ₹1,199.
Keep reading.
Section 44AD presumptive taxation
Declare 8% or 6% of turnover and skip the books: limits, exclusions, the five-year rule, advance tax and ITR-4.
Read guide→GuideWhich ITR Form Should You File for AY 2026-27? ITR-1, 2, 3 or 4, Decided in Six Questions
Six questions, one answer. The ITR-1 to ITR-4 rules for AY 2026-27, the ₹1.25 lakh LTCG change, and what a wrong form costs you.
Read guide→Official references
The statutory sources behind this page. We keep our guidance aligned to them: verify anything time-sensitive directly.
- Ministry of Corporate AffairsCompanies Act filings, forms and fee schedules
- Income Tax DepartmentReturns, forms, rates and e-filing utilities
- GST PortalRegistration, returns and rate notifications
Facts on this page are checked against these sources; the date of the last check is shown at the top of the page. It is general guidance, not advice on your specific facts. How we write and check our guides.