Filing ITR-4 (Sugam) Online AY 2026-27 Documents & Portal Guide

ITR-4, also known as “Sugam,” is a simplified Income Tax Return form for small businesses and professionals opting for the presumptive taxation scheme under the Income Tax Act.

For Assessment Year (AY) 2026-27, the Central Board of Direct Taxes (CBDT) has introduced important updates in ITR-4 relating to eligibility, reporting requirements, and disclosures.

What is ITR-4?

ITR-4 is meant for resident individuals, Hindu Undivided Families (HUFs), and firms (other than LLPs) having presumptive income under:

• Section 44AD – Business income
• Section 44ADA – Professional income
• Section 44AE – Transport business income

The form is designed to simplify tax compliance for small taxpayers.

Who Can File ITR-4 for AY 2026-27?

You can file ITR-4 Form if:

• Total income does not exceed ₹50 lakh
• You are a resident individual, HUF, or partnership firm (excluding LLP)
• You have opted for presumptive taxation under Sections 44AD, 44ADA, or 44AE
• Income is from:
  • Small business
  • Profession
  • Salary or pension
  • One or two house properties
  • Other sources like bank interest
• Agricultural income is up to ₹5,000

Who Cannot File ITR-4?

ITR-4 cannot be used if:

• Total income exceeds ₹50 lakh
• You are a company director
• You own foreign assets
• You have foreign income
• You hold unlisted equity shares
• You have capital gains beyond specified limits
• You have income from more than one profession requiring regular books
• You are an LLP

Major Changes in ITR-4 for AY 2026-27

1. Two House Properties Allowed

Similar to ITR-1 form filing, taxpayers filing ITR-4 can now report income from up to two house properties. Earlier, only one house property was allowed.

2. LTCG Reporting under Section 112A

Taxpayers can now report long-term capital gains up to ₹1.25 lakh from listed equity shares and equity mutual funds directly in ITR-4, subject to prescribed conditions.

3. Additional Communication Details

The revised ITR-4 now includes:

• Secondary address
• Alternate mobile number
• Additional email ID

These additions help improve communication with the Income Tax Department.

4. Enhanced Tax Payment Reporting

CBDT has updated Schedule-IT for detailed reporting of:

• Challan serial number
• BSR code
• Date of payment
• Advance tax and self-assessment tax details

Presumptive Taxation under ITR-4

Section 44AD – Business

Eligible businesses can declare income at:

• 8% of turnover (cash receipts)
• 6% of digital receipts

Section 44ADA – Professionals

Specified professionals can declare:

• 50% of gross receipts as taxable income

Section 44AE – Transporters

Income is declared on a fixed amount per vehicle basis.

Due Dates for AY 2026-27

Documents Required for ITR-4 Filing

• PAN Card
• Aadhaar Card
• Bank statements
• Form 26AS
• AIS & TIS
• GST details (if applicable)
• Turnover summary
• Investment proofs
• Loan statements
• Tax payment challans

Benefits of Filing ITR-4

• Simplified return filing
• Reduced compliance burden
• No requirement to maintain detailed books in specified cases
• Easy and faster filing process
• Lower risk of notices if filed correctly

Important Clarification for AY 2026-27

Although the new Income Tax Act, 2025, has come into effect from April 2026, returns for AY 2026-27 relating to FY 2025-26 will continue to be governed by the Income Tax Act, 1961.

For expert assistance in income tax return filing in Delhi, tax planning, and presumptive taxation compliance, connect with Taxcellent.

Official filing portal: Income Tax e-Filing Portal