ITR-4 for Small Taxpayers: Eligibility Criteria for AY 2025–26

Current position — reviewed 22 August 2026

The eligibility conditions set out here relate to AY 2025-26 and were correct for that year. They continue to hold for FY 2025-26 (AY 2026-27), with the reference points below.

• ITR-4 (Sugam) remains available to resident individuals, HUFs and firms other than LLPs declaring income on a presumptive basis, subject to the total income limit prescribed for the form.

• The presumptive limits under Section 44AD and Section 44ADA raised by the Finance Act, 2023, with the higher limits available where cash receipts do not exceed 5% of turnover or gross receipts, continued to apply for FY 2025-26.

• ITR-4 cannot be used where you are a director in a company, hold unlisted shares, have foreign income or assets, or have income above the limits specified for the form.

• All ITR forms for AY 2026-27 have been notified; confirm the limits and eligibility in the form notified for the year you are actually filing before you choose it.

Filing your Income Tax Return (ITR) correctly is crucial to stay compliant and avoid legal consequences. For Assessment Year 2025–26, the Income Tax Department has made it easier for small taxpayers and professionals to declare income using ITR-4 (SUGAM). But not everyone is eligible to use this form.

So, who can file ITR-4 for AY 2025–26? Let’s break it down.

What is ITR-4?

ITR-4, also known as SUGAM, is a simplified return form for individuals, Hindu Undivided Families (HUFs), and firms (other than LLPs) who opt for presumptive income schemes under:

• Section 44AD – For small businesses
• Section 44ADA – For professionals
• Section 44AE – For transporters

It is meant to reduce compliance burden and allow eligible taxpayers to file returns without detailed bookkeeping or audited financials.

Who Can File ITR-4 for AY 2025–26?

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

Type of Person

• Individual
• Hindu Undivided Family (HUF)
• Partnership Firm (other than LLP)

Income Source

• Business income under Section 44AD (Presumptive business)
• Professional income under Section 44ADA (Presumptive profession)
• Income from goods carriage under Section 44AE
• Income from salary/pension
• Income from one house property
• Income from other sources (excluding lottery, racehorse, etc.)

Total Income

• Total income up to ₹50 lakh

Income Calculation

• Income declared using presumptive method, i.e.,
• 8% of gross receipts (6% for digital payments) for business under 44AD
• 50% of gross receipts for profession under 44ADA
• Fixed presumptive income per vehicle for transporters under 44AE

Who Cannot File ITR-4?

You cannot file ITR-4 if:

• Your total income exceeds ₹50 lakh
• You earn capital gains
• You own more than one house property
• You have foreign assets or foreign income
• You are a Director in a company
• You hold unlisted equity shares
• You have income from speculative businesses
• Your accounts are required to be audited under Income Tax Act

In such cases, you should file ITR-3 or other relevant forms.

Advantages of Filing ITR-4

1. Simplified Format – No need to maintain detailed accounts.
2. Time-Saving – Fewer disclosures and quicker to file.
3. Reduced Compliance – No requirement for profit & loss statement or audit under presumptive schemes.
4. Pre-Filled Option – ITR-4 can be filed online with partially pre-filled data on the Income Tax Portal.
5. Claiming Deductions – Eligible deductions under Chapter VI-A (like 80C, 80D) can still be claimed.

Documents Needed to File ITR-4

Even though detailed accounts are not needed, keep these ready:

• PAN & Aadhaar card
• Form 26AS (for TDS and tax credits)
• AIS & TIS statements
• Bank account details
• Business/professional turnover summary
• Investment proof (for claiming deductions)
• Details of fixed assets or loan interest, if any

Key Dates for AY 2025–26:

• ITR Filing Deadline (Non-Audit Cases): 31st July 2025
• Last Date to File Revised or Belated Return: 31st December 2025
• Advance Tax Installments (if applicable): Follow scheduled due dates under income tax provisions

Final Thoughts

ITR-4 is the ideal form for small taxpayers looking for an easy, fast, and less burdensome way to file returns. If you're a freelancer, consultant, small business owner, or transport operator with income under ₹50 lakh, this form is tailor-made for you.

Make sure you check all eligibility conditions before selecting ITR-4, and file your return on time to avoid penalties and notices.

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