{"id":7770,"date":"2026-06-25T14:14:23","date_gmt":"2026-06-25T08:44:23","guid":{"rendered":"https:\/\/1finance.co.in\/1f-dashboard\/?post_type=blog&p=7770"},"modified":"2026-06-25T14:14:26","modified_gmt":"2026-06-25T08:44:26","slug":"itr-4-form-ay-2026-27-guide","status":"publish","type":"blog","link":"https:\/\/1finance.co.in\/1f-dashboard\/blog\/itr-4-form-ay-2026-27-guide\/","title":{"rendered":"ITR-4 (Sugam) for AY 2026-27: Eligibility, presumptive taxation & filing guide"},"content":{"rendered":"\n

ITR-4, called Sugam, is the income tax return form for small businesses and professionals who use the presumptive taxation scheme. It is the simplest way for shop owners, freelancers, consultants, and small transport operators to file, because presumptive taxation lets you declare a fixed percentage of your turnover as income without maintaining detailed books of accounts.
This guide explains who can file ITR-4, how the presumptive scheme works under Sections 44AD, 44ADA, and 44AE, what changed for AY 2026-27, and how to file it online. For the wider context, see our complete ITR filing guide for FY 2025-26<\/a> and our guide on choosing the right ITR form<\/a>.<\/p>\n\n\n\n

Who can file ITR-4?<\/h2>\n\n\n\n

You can file ITR-4 only if you meet all of these conditions.<\/p>\n\n\n\n

You must be a:<\/strong><\/p>\n\n\n\n

\u2192 Resident individual, HUF, or partnership firm. LLPs cannot use ITR-4, and non-residents (NRIs) and RNORs are not eligible.<\/p>\n\n\n\n

\u2192 Taxpayer with total income up to \u20b950 lakh for the year.<\/p>\n\n\n\n

Your income must come only from these sources:<\/strong><\/p>\n\n\n\n

\u2192 Business or professional income computed on a presumptive basis under Section 44AD, 44ADA, or 44AE.<\/p>\n\n\n\n

\u2192 Salary or pension.<\/p>\n\n\n\n

\u2192 One house property.<\/p>\n\n\n\n

\u2192 Other sources such as interest income (but not winnings from lottery or race horses).<\/p>\n\n\n\n

\u2192 Long-term capital gains under Section 112A (listed shares or equity mutual funds) up to \u20b91.25 lakh, with no losses to carry forward.<\/p>\n\n\n\n

\u2192 Agricultural income up to \u20b95,000.<\/p>\n\n\n\n

How presumptive taxation works<\/h2>\n\n\n\n

Presumptive taxation is a simple tax method for small taxpayers. Instead of keeping detailed books and calculating exact profit, you can show a fixed part of your turnover or receipts as income. ITR-4 can be used for all three presumptive tax sections.\u00a0<\/p>\n\n\n\n

Section 44AD \u2013 Small businesses<\/strong><\/p>\n\n\n\n

Under Section 44AD, income is presumed to be 8% of turnover for cash receipts and 6% of turnover for digital receipts. This scheme is available to eligible businesses with an annual turnover of up to \u20b92 crore. The threshold increases to \u20b93 crore if cash receipts do not exceed 5% of total receipts.<\/p>\n\n\n\n

Section 44ADA \u2013 Professionals<\/strong><\/p>\n\n\n\n

Section 44ADA applies to specified professionals such as doctors, lawyers, architects, engineers, and consultants. Under this scheme, income is presumed to be 50% of gross receipts. It can be availed if gross receipts are up to \u20b950 lakh, with the limit increasing to \u20b975 lakh where cash receipts do not exceed 5% of total receipts.<\/p>\n\n\n\n

Section 44AE \u2013 Goods transport business<\/strong><\/p>\n\n\n\n

Section 44AE applies to taxpayers engaged in the business of plying, hiring, or leasing goods carriages. For operators owning up to 10 goods vehicles, income is computed on a prescribed fixed amount per vehicle per month, irrespective of actual earnings.<\/p>\n\n\n\n

\"cta-avatar\"\/<\/div>

File your ITR with Qualified CAs<\/h3>

Let an expert handle it<\/strong><\/p><\/div>