ITR-4 (Sugam) AY 2026-27: New changes, who can file, last date & how to file

What is ITR-4 (Sugam)?

ITR-4 (Sugam) is a simplified return form applicable to resident individuals, HUFs, and firms (other than LLPs) with total income up to Rs. 50 lakhs, opting for presumptive taxation under sections 44AD, 44ADA, or 44AE of the Income-tax Act, 1961. 

The form may generally be used where eligible taxpayers have income from a presumptive business/profession along with specified other incomes such as salary, income from other sources, etc., and have long-term capital gains under section 112A up to Rs. 1.25 lakh.

ITR-4 filing due dates

For AY 2026–27, ITR-4 can be filed for non-audit cases by 31 August 2026, whereas in audit cases it would be 31 October 2026, unless extended by the Government.

If you missed the August 31 deadline for your ITR-4, you can still file a belated return till December 31, 2026. However, there would be late fines under section 234F (up to Rs 5,000) and interest under section 234A. Budget 2026 also extended the due date for filing a revised return to March 31, 2027.

Who can file ITR-4?

• Resident Individuals, HUFs and firms (other than LLPs) having total income up to Rs 50 lakh during the financial year can file ITR-4 (Sugam). 
• The form is basically for those taxpayers who are opting for the presumptive taxation scheme under section 44AD, 44ADA or 44AE. 
• Taxpayers who want to declare income from salary or pension, one house property, agricultural income up to Rs 5,000 and some other sources of income apart from income from business or profession. These include interest earned on savings accounts, deposits in banks or post offices, income tax refunds, family pension, interest on enhanced compensation and other interest income. 
• Those having long-term capital gains up to Rs 1.25 lakh under Section 112A can also file ITR-4, subject to prescribed conditions, as per the Income Tax Department.

Who can’t file ITR-4?

• As per the Income Tax Department, ITR-4 (Sugam) cannot be filed by resident but not ordinarily resident (RNOR) individuals, non-resident Indians (NRIs), or taxpayers whose total income exceeds Rs 50 lakh during the financial year. 
• The form is also not available for those having short-term capital gains or long-term capital gains under Section 112A exceeding Rs 1.25 lakh.
• Additionally, taxpayers with agricultural income above Rs 5,000, income from more than one house property, or those serving as directors in a company are not eligible to use ITR-4. 
• The form also cannot be used by individuals earning income from lotteries, race horses, or income taxable at special rates under Sections 115BBDA or 115BBE. 
• Further, taxpayers who held unlisted equity shares during the financial year, deferred tax on ESOPs received from an eligible start-up employer, or do not satisfy the prescribed conditions for presumptive taxation, cannot file ITR-4.

What are the changes in the ITR-4 Form?

Some of the key changes in ITR-4 from AY 2026-27 are as follows:

Removal of Foreign Retirement Account Disclosure in ITR-4:

The removal of specific disclosure fields relating to foreign retirement benefit accounts from ITR-4 for AY 2026–27 appears to be a rationalisation measure intended to streamline reporting requirements and avoid duplication. 

Taxpayers holding overseas retirement accounts, such as US 401(k) plans, are generally required to furnish ITR-2 or ITR-3 on account of foreign asset and/or foreign income reporting obligations. Accordingly, the requirement to disclose such accounts continues under the applicable return forms.

Expanded Scope for up to 2 House Properties:

The scope of eligibility for filing ITR-4 has been expanded to include individuals owning up to two house properties, as against the earlier restriction of one house property. This change is expected to enable a wider set of taxpayers to avail the benefit of simplified return filing.

Mandatory disclosure of Bank balances under Schedule BP:

Earlier, certain balances/items such as Sundry Creditors, Inventories, Sundry Debtors and Cash in hand were mandatorily required to be disclosed, resulting in a compliance-driven reporting format even where such elements were not relevant to the taxpayer’s facts.

However, the revised framework now requires the taxpayers to mandatorily disclose all their Bank Balances, which was an optional disclosure under Schedule BP – Financial Particulars of the business till the last financial year. 

It is pertinent to note that even though such disclosure did not form a part of mandatory disclosure under Schedule BP, the taxpayers were nevertheless required to disclose their Bank details under “Part D21 – Bank Account – Details of all Bank Accounts held in India at any time during the previous year (excluding dormant accounts).

“In this schedule, the taxpayers were required to provide the details of all the savings/ current accounts held in India during the relevant tax year, except dormant accounts, which are not operational for more than 3 years,” said CA (Dr.) Suresh Surana.

Reporting of Long-Term Capital Gains (LTCG)

Now, if you are not carrying forward any capital losses, you can simply report long-term capital gains under section 112A (up to Rs 1.25 lakh) in the form itself.

Disclosure of TDS and Aadhaar details

The 28-digit Aadhaar Enrollment ID is no longer recognized by the government; instead, the 12-digit Aadhaar number is the only one that works. The Income Tax Department added a new column to Schedule-TDS of ITR-4 (Sugam) that requires taxpayers to clearly indicate which section their TDS was deducted under.

Documents required to file ITR-4

To file ITR-4, you must have the following documents available, if necessary, as per the Income Tax Department.

• Form 16
• Form 26AS & AIS
• Form 16A
• PAN-linked Aadhaar
• Bank Statements
• Housing Loan Interest Certificates
• Receipts for Donation Made
• Rental Agreement
• Rent Receipts
• Investment premium payment receipts – LIC, ULIP etc.

How to file ITR-4 (Sugam)?

Step 1: Visit the Income Tax e-filing portal

Go to the Income Tax e-Filing Portal and log in using your PAN/Aadhaar and password.

Step 2: Go to the Income Tax Return section

After logging in:

• Click on e-File
• Select Income Tax Returns
• Click on File Income Tax Return

Step 3: Select the assessment year

Choose:

• Assessment Year (AY) 2026-27
• Filing mode as Online

Then click Continue.

Step 4: Choose your taxpayer status

Select the applicable category:

• Individual
• HUF
• Firm (other than LLP)

Step 5: Select ITR-4 (Sugam)

The portal will show different ITR forms based on your profile. Select ITR-4 (Sugam) if you are eligible under the presumptive taxation scheme under Sections 44AD, 44ADA, or 44AE.

Step 6: Choose the reason for filing

Select the appropriate reason, such as:

• Taxable income exceeds the exemption limit
• Filing due to TDS claim
• Voluntary return filing

Step 7: Check pre-filled information

The portal automatically pre-fills many details from:

• PAN database
• Form 26AS
• AIS
• Previously filed returns

Verify:

• Personal details
• Bank account details
• Income details
• TDS information

Step 8: Enter income details

Fill in details related to:

• Business or professional income under presumptive taxation
• Salary or pension income
• House property income
• Interest income and other sources

Step 9: Claim deductions and tax benefits

Add eligible deductions under sections such as:

• 80C
• 80D
• 80G
• Other applicable deductions

Step 10: Verify tax computation

The portal automatically calculates:

• Total income
• Tax liability
• Refund or balance tax payable

Check all figures carefully before proceeding.

Step 11: Pay tax if required

If any tax is payable:

• Use the e-Pay Tax option
• Complete the payment
• Return to the form and confirm payment details

Step 12: Preview and submit the return

Preview the complete return carefully and click Submit.

Step 13: e-Verify your ITR

Your ITR filing process is completed only after successful e-verification. You can verify your return using:

• Aadhaar OTP
• Net banking
• Demat account
• Bank account EVC
• Digital Signature Certificate (DSC)

Disclaimer: This article is for informational purposes only and does not constitute professional tax advice. Tax laws and regimes are subject to frequent changes by the government. Readers should verify details with official Income Tax Department notifications or consult a Chartered Accountant before making any financial decisions.