How to File ITR-4 for AY 2026-27: Check New Changes and Deadlines

It’s that time of the year when you file your income tax returns! If you are a small business owner or a hustling freelancer, however, the forms and the technicalities involved in filing them are your biggest nightmares. What if I make a mistake or worse, miss the deadline? You keep wondering, as sweat trickles down your face.

Filing ITR-4 (Sugam) is the fastest way for small businesses and professionals to report income under the Presumptive Taxation Scheme, where you pay tax on a fixed percentage of your turnover without maintaining detailed books. But there are eligibility criteria to be met to file ITR-4; cross-check before processing.

Now, if you want to master how to file ITR-4 online and save your time, then you can dive deep into this blog for a step-by-step process.

Prerequisites for Filing ITR-4

Before you file ITR-4 online, ensure you have the following documents:

• A registered account on the Income Tax Department’s e-Filing portal with valid credentials (PAN as user ID).
• Permanent Account Number (PAN) and Aadhaar linked with PAN.
• Bank account details, including IFSC and account number for the refund credit.
• Summary of your income sources computed under presumptive taxation.
• Details of income from salary, pension, one house property, and other sources, such as interest income.
• Secured digital documents for deductions under Chapter VI-A, such as insurance premiums, life savings, and donations.
• Form 10-IEA if you are planning to opt out of the new tax regime and select the old tax regime.
• Tax deduction certificates like Form 16, Form 26AS for TDS details, and tax payment challans if advance tax or self-assessment tax has been paid.
• Previous year income tax return for reference, if applicable.

If you keep the aforementioned list of documents ready, your ITR-4 filing process will surely become as easy as sipping tea.

How to File ITR-4 Online for AY 2026-27: Step-by-Step Process

Filing your ITR-4 online isn’t a tough nut to crack, but it requires precision. Here’s a detailed guide on how to file ITR-4 step by step so you can attain the same:

Step 1: Log in to the Income Tax e-Filing Portal

• Visit the official portal: https://www.incometax.gov.in/iec/foportal/.
• Log in using your PAN, password, and captcha.
• If you are a new user, register using your PAN and follow the instructions to create a login ID.

Step 2: Select the Assessment Year & ITR Form

• Go to e-File > Income Tax Return > File Income Tax Return.
• Choose Assessment Year: AY 2026-27 (for income earned in FY 2025-26).
• Select ITR-4 and choose Online as the filing mode.
• Choose your filing category: Individual/HUF/Firm (other than LLP).
• Specify the reason for filing (for example, income above the exemption limit).

Step 3: Verify Personal Information

• Your personal details (name, PAN, Aadhaar, DOB, address, contact info) will be auto-filled. Review carefully.

Step 4: Fill in Gross Total Income

Include income under:

• Presumptive business/professional income (Sections 44AD, 44ADA, 44AE)
• Salary/pension
• One house property
• Other sources (for example, interest income, family pension, etc.)

Note: Ensure presumptive profit rates are correctly applied.

Step 5: Disclosures and Exempt Income

Disclose:

• Gross receipts/turnover (especially if registered under GST)
• Exempt income (e.g., agricultural income up to INR 5,000)

New Requirement: Mandatory disclosure of bank balance. If you have opted out of the new tax regime in previous years, you must confirm past filings of Form 10-IEA and whether you wish to continue opting out. Additionally, report long-term capital gains under Section 112A up to Rs. 1.25 lakh.

ClearTax Income Tax

5

Starting Price

Price on Request

Learn More

Step 6: Declare Deductions

Enter eligible deductions under Chapter VI-A, such as:

• Section 80C: PPF, LIC, ELSS, tuition fees
• Section 80D: Health insurance premiums
• Section 80CCD(1B): NPS
• Section 80GG: Rent paid (if no HRA; requires Form 10BA)

Note: Under the new tax regime, most deductions are not allowed except for specific ones like NPS employer contributions.

Step 7: Taxes Paid

Verify:

• TDS from Form 26AS and AIS
• Advance Tax
• Self-Assessment Tax

New Requirement: Mention the TDS section under which tax was deducted (e.g., 194A for interest income).

Step 8: Preview and Validate

• Review all sections.
• Use the portal’s internal validation tool to check for errors.
• Correct any discrepancies before submission.

Step 9: Submit and Verify Your Return

Submit the return online and verify it within 30 days using:

• Aadhaar OTP
• Net Banking
• Digital Signature
• Or send the signed ITR-V to CPC, Bengaluru

Note: If not verified, the return will be treated as invalid.

Step 10: Save Acknowledgment

• Download and save the acknowledgment receipt (ITR-V or confirmation page).
• This serves as proof of successful filing.

To understand how to fill ITR-4 with an example, consider Mr. Sharma, a freelance consultant who earns INR 40 lakh under presumptive taxation (Section 44ADA), INR 5 lakh from salary, INR 1 lakh from house property, and INR 50,000 as interest income. As per his income sources, he is required to file ITR-4.

To do the same thus, he will have to enter his income details under the respective heads to claim deductions of INR 1.5 lakh under Section 80C and INR 25,000 under Section 80D.

How to Download ITR-4 (Sugam)?

You can download ITR-4 (Sugam) in the following two ways:

• From the Income Tax Department’s e-Filing portal under the Downloads section as a PDF or Excel utility.
• Directly after submission, you can download your filed ITR-4 return acknowledgment in PDF format from your dashboard.

ITR-4 Filing Last Date AY 2026-27

The last date for filing ITR-4 for FY 2025-26 has been extended to August 31, 2026.

Common Mistakes to Avoid When Filing ITR-4

Filing your ITR-4 correctly is necessary in order to stay clear of notices and penalties. Here are some blunders that you need to watch out for:

• Not opting out of the new tax regime timely if intending to use the old regime for business or professional income.
• Omitting income sources, especially house property or interest income.
• Entering incorrect presumptive income amounts or not applying the correct Sections (44AD, 44ADA, 44AE).
• Ignoring advance tax payment and TDS details leads to miscalculated tax liabilities.
• Not verifying the return within the stipulated time renders the return invalid.
• Missing to claim eligible deductions under Chapter VI-A or claiming ineligible ones if on the new tax regime.
• Failing to attach or upload the necessary supporting documents where applicable.
• Using outdated forms or filing modes.

Conclusion

If you know how to file ITR-4 online, you, as a small business owner or working professional, can adhere to tax laws in India without putting in much effort. All you then need to do is stay updated with notifications from the Income Tax Department, so you don’t miss out on anything.

For those requiring additional tech help to facilitate their ITR-4 filing process online, we have specialised income tax software like GEN Income Tax Software, Saral IncomeTax, etc., as well. You just need to give our product team a call to get things sorted for you!