AY 2026-27 | Presumptive Taxation | Due: 31 August 2026 (Extended)

ITR-4 (Sugam) Filing for AY 2026-27
Presumptive Taxation | 44AD | 44ADA | 44AE

Simplified Income Tax Return filing for small businesses, freelancers, and professionals under presumptive taxation. Vaidam Consultancy provides expert CA-assisted filing for AY 2026-27 (FY 2025-26), ensuring complete compliance with new mandatory disclosures – investments and bank balances – introduced by CBDT for presumptive taxpayers.

  • Presumptive taxation under Sections 44AD (Business: 6-8% profit)
  • Section 44ADA for Professionals (Doctors, Lawyers, Freelancers) – 50% income
  • Section 44AE for Transport Businesses (Goods Carriages)
  • New mandatory disclosures: Investments & Bank Balances
  • Total income up to ₹50 lakh | Salary, 1-2 house properties permitted
Delhi | Noida | Gurugram File before 31 August 2026

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CA assistance for 44AD/44ADA

What is ITR-4 (Sugam) Form?

ITR-4 (Sugam) is a simplified Income Tax Return form designed for resident individuals, Hindu Undivided Families (HUFs), and partnership firms (other than LLPs) who have opted for the presumptive taxation scheme under Sections 44AD, 44ADA, or 44AE of the Income Tax Act. It eliminates the need to maintain detailed books of accounts and undergo tax audits, making tax compliance hassle-free for small businesses, freelancers, consultants, and transport operators. For AY 2026-27 (FY 2025-26), ITR-4 incorporates several important updates, including mandatory disclosure of investments and bank balances, in line with the government's push for financial transparency.

  • Designed for taxpayers opting for presumptive taxation scheme
  • No detailed bookkeeping or tax audit required (subject to conditions)
  • Allows reporting of salary, up to two house properties, and other incomes
  • Simplified online filing via Income Tax portal
  • Sugam (Easy) – File Your Presumptive Taxes with Confidence

    Who is Eligible to File ITR-4 for AY 2026-27?

    You can file ITR-4 only if you meet all the following conditions:

    • Residential Status: Resident individual, HUF, or firm (other than LLP)[reference:0]
    • Total Income: Does not exceed ₹50 lakh[reference:1]
    • Source of Income: Business/profession income computed under Sections 44AD, 44ADA, or 44AE
    • Capital Gains: Only LTCG under Section 112A up to ₹1.25 lakh permitted (no STCG allowed)[reference:2]
    • House Property: Can have income from up to two house properties
    • Agricultural Income: Up to ₹5,000 permitted
    • No foreign assets/income: You must not hold any assets outside India[reference:3]
    • No directorship: You cannot be a director in any company[reference:4]
    • No unlisted equity shares: Holding unlisted equity shares disallows ITR-4[reference:5]

    If any of the above conditions are not met, you must file ITR-2, ITR-3, or ITR-5 as applicable.

    Small Businesses | Freelancers | Professionals | Transport Operators

    Presumptive Taxation Schemes in ITR-4

    The presumptive taxation scheme allows small taxpayers to declare income as a fixed percentage of their turnover/gross receipts, without maintaining regular books of accounts[reference:6].

    • Section 44AD – Small Businesses: Eligible for businesses (except LLPs, commission/agency businesses). Turnover limit: ₹2 crore (₹3 crore if <5% cash receipts)[reference:7]. Presumptive rate: 8% (cash) or 6% (digital) of turnover[reference:8].
    • Section 44ADA – Professionals: For specified professionals – doctors, lawyers, CAs, architects, engineers, technical consultants, etc.[reference:9]. Gross receipts limit: ₹50 lakh (₹75 lakh if <5% cash receipts)[reference:10]. Presumptive rate: 50% of gross receipts deemed as income[reference:11].
    • Section 44AE – Transporters: For goods carriage owners (not more than 10 vehicles). Presumptive income per vehicle based on vehicle weight[reference:12].
    44AD: 8%/6% 44ADA: 50% 44AE: Vehicle basis

    Enhanced Limits for Digital Transactions (AY 2026-27)

    To encourage digital payments, the government has increased turnover limits for taxpayers who primarily use digital modes for receipts[reference:13][reference:14].

    • Businesses (44AD): ₹3 crore (if cash receipts ≤5% of total turnover) vs ₹2 crore normally
    • Professionals (44ADA): ₹75 lakh (if cash receipts ≤5% of total receipts) vs ₹50 lakh normally
    • Reduced Presumptive Rate: Digital receipts attract 6% deemed profit (vs 8% for cash) under Section 44AD

    If you exceed the enhanced digital limits, you may still be eligible for presumptive taxation at reduced rates subject to meeting the cash receipt threshold.

    Digital-First Businesses Enjoy Higher Limits & Lower Tax

    Key Changes in ITR-4 for AY 2026-27

    • Mandatory Investment Disclosure: Taxpayers must now report their investments as on March 31, 2026, under "Financial Particulars of the Business"[reference:15][reference:16].
    • Mandatory Bank Balance Disclosure: Bank balances, previously optional, are now mandatory to disclose[reference:17][reference:18].
    • Two House Properties Allowed: Earlier limited to one, now ITR-4 allows reporting income from up to two house properties.
    • LTCG Up to ₹1.25 Lakh Included: Long-term capital gains from equity shares/equity mutual funds under Section 112A up to ₹1.25 lakh can now be reported.
    • Disqualifications Remain: Cannot file if you are a company director, hold unlisted shares, or have foreign assets[reference:19].
    Investment Disclosure Bank Balance Reporting 2 House Properties

    Which Presumptive Section is Right for You?

    Compare eligibility, limits, and tax rates for AY 2026-27

    ParticularsSection 44AD (Business)Section 44ADA (Profession)Section 44AE (Transport)
    Who can Opt?Resident Individuals, HUF, Partnership Firms (No LLP)Resident Individuals, HUF, Partnership Firms (Listed Professions)Owners of Goods Vehicles (Max 10 vehicles)
    Turnover Limit₹2 crore (₹3 crore if 95%+ digital receipts)₹50 lakh (₹75 lakh if ≤5% cash receipts)Not based on turnover
    Presumptive Rate8% (Cash) / 6% (Digital)50% of gross receipts₹7,200/vehicle (HGV) / ₹6,000 (Other)
    Books of AccountsNot requiredNot requiredNot required

    New Mandatory Disclosures for ITR-4 Filers (AY 2026-27)

    CBDT has introduced several compliance changes for small taxpayers under presumptive taxation[reference:20].

    • Investment Details: Mandatory disclosure of investments held as of March 31, 2026, under Schedule BP – Financial Particulars of the Business[reference:21].
    • Bank Balance: Closing balance as on March 31, 2026, must be reported (previously optional)[reference:22].
    • Sundry Debtors & Creditors: Detailed reporting of business-related receivables and payables.
    • Tax Regime Choice: The new tax regime is the default; opting for the old regime requires filing Form 10-IEA before the deadline.

    Ensure consistency between declared presumptive income and banking/financial transactions to avoid scrutiny[reference:23].

    Financial Transparency Starts with Correct Disclosures

    Essential Documents for ITR-4 Filing

    • Basic KYC: PAN Card, Aadhaar Card, and Aadhaar-linked mobile number[reference:24]
    • Bank Statements: All savings/current account statements for FY 2025-26 (for bank balance disclosure)
    • Turnover/Gross Receipts Details: Business or professional income details (cash and digital break-up)
    • TDS/TCS Statements: Form 26AS, AIS (Annual Information Statement), and Form 16/16A, if applicable
    • Investment Details: Summary of all investments as of March 31, 2026
    • Salary & Property Details: Form 16 (if salaried), home loan interest certificates, property details
    • Advance Tax Challans: For proof of advance tax/self-assessment tax payments

    Simplified Document Checklist – We'll Guide You

    Easy 5-Step ITR-4 Filing Process

    1. Document & Disclosure Preparation: Share your turnover/gross receipts, investment details, and bank account statements.
    2. Presumptive Income Computation: Our CAs compute income based on the applicable section (44AD/44ADA/44AE) and declare the prescribed percentage (6-8% for businesses, 50% for professionals).
    3. Tax Regime Selection: New tax regime is the default. For the old regime, we assist with Form 10-IEA filing before the deadline.
    4. E-Filing via Income Tax Portal: Fill all applicable schedules (Business, Salary, House Property, Other Sources). We'll ensure compliance with new disclosure requirements (bank balance/investments).[reference:25]
    5. Verification & Acknowledgment: E-verify using Aadhaar OTP, net banking, or EVC. Download ITR-V for future reference.

    Average Turnaround: 3–5 working days for most ITR-4 filings.

    → → → →

    Documentation → Computation → Disclosures → Filing → Verification

    Important Due Dates & Tax Regime Rule

    • ITR-4 Due Date: August 31, 2026 (Extended from July 31 for non-audit cases)[reference:26]
    • Belated Return: Can be filed by December 31, 2026, with late fees under Section 234F
    • Tax Regime Choice: The New Tax Regime is the default for AY 2026-27. To opt for the Old Tax Regime, you must file Form 10-IEA before the ITR-4 filing deadline. If you file late, you automatically lose the right to choose the old regime.
    • Advance Tax for Presumptive Taxpayers: No installments required. The entire advance tax can be paid in one installment on or before March 15, 2026.

    Meet the Deadline, Avoid Penalties, Choose the Right Regime

    Why Choose Vaidam Consultancy for ITR-4?

    Specialized expertise in presumptive taxation compliance

    Presumptive Taxation Experts

    Deep understanding of Sections 44AD, 44ADA, and 44AE, including enhanced limits for digital transactions.

    Digital Receipt Optimization

    We help you leverage reduced 6% presumptive rate by highlighting digital receipts and meeting cash receipt thresholds.

    New Disclosure Compliance

    Expert guidance on mandatory investment and bank balance disclosures under the revised ITR-4 form for AY 2026-27.

    Tax Regime Comparison

    We compute tax liability under both New vs Old tax regimes and help you choose the optimal one.

    End-to-End Support

    Assistance with Form 10-IEA (if opting for old regime), advance tax calculations, and post-filing support.

    High Accuracy & Transparency

    99% acceptance rate for ITR-4 filings. No hidden charges.

    Transparent Fee for ITR-4 Filing

    Basic ITR-4 (44AD/44ADA)

    ₹2,499

    For small businesses and professionals with presumptive income, one house property, salary income

    ITR-4 with Complex Disclosures

    ₹3,999

    For taxpayers with multiple incomes (business + salary + house property + LTCG) and mandatory investment/balance disclosures

    Revised/Belated ITR-4

    ₹3,499

    Filing for earlier years or missed deadlines

    *GST extra as applicable. Special discounts for multiple entities.

    ITR-4 FAQs – AY 2026-27

    What is the due date for filing ITR-4 for AY 2026-27?
    For non-audit cases under presumptive taxation, the due date for filing ITR-4 for AY 2026-27 is August 31, 2026 (extended). A belated return can be filed by December 31, 2026, with late fees under Section 234F. The new tax regime is the default; opting for the old regime requires filing Form 10-IEA before the deadline[reference:27].
    Can I report capital gains in ITR-4 for AY 2026-27?
    Yes, only long-term capital gains (LTCG) under Section 112A from listed equity shares/equity mutual funds up to ₹1.25 lakh can be reported in ITR-4. Short-term capital gains (STCG) are NOT permitted in ITR-4. If you have any STCG, you must file ITR-2 or ITR-3[reference:28].
    What are the new mandatory disclosures in ITR-4 for AY 2026-27?
    CBDT has introduced two major mandatory disclosures: (1) Investment Details as on March 31, 2026, in Schedule BP, and (2) Bank Balance as on March 31, 2026, in the same schedule. Earlier these were optional. Ensure consistency between declared presumptive income and these financial details[reference:29][reference:30].
    Can I file ITR-4 if I am a company director or hold unlisted shares?
    No. ITR-4 cannot be filed by individuals who are directors in a company, hold unlisted equity shares, have foreign assets/income, or have agricultural income exceeding ₹5,000. You must file ITR-2 or ITR-3 in such cases[reference:31].
    What are the enhanced turnover limits for digital transactions?
    To promote digital payments: For businesses (Section 44AD): ₹3 crore (if cash receipts ≤5%) vs ₹2 crore normally; For professionals (Section 44ADA): ₹75 lakh (if cash receipts ≤5%) vs ₹50 lakh normally. Reduced presumptive rate: 6% for digital receipts vs 8% for cash[reference:32].
    What documents are required to file ITR-4?
    Key documents: PAN, Aadhaar, bank statements (with balance as on 31 March 2026), investment details (for mandatory disclosure), turnover/gross receipts breakup (cash vs digital), Form 26AS/AIS for TDS credit, and salary/house property details if applicable[reference:33].

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    File Your ITR-4 Before 31 August 2026

    Don't miss the extended due date. Let our expert CAs handle your presumptive taxation filing, new mandatory disclosures, and tax regime selection. Get maximum compliance with minimal effort.

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