ITR Filing 2025: The Income Tax Department has released the ITR-4 (Sugam) form for the Assessment Year 2025–26.
This form is mainly meant for small business owners, professionals, and individuals who file returns under the Presumptive Taxation Scheme.
The department shared this update on X (formerly Twitter) on 6 May 2025, referring to Notification No. 40/2025 issued on 29 April 2025. The new form has been in effect from 1 April 2025.
Who Can File ITR-4?
ITR-4 is for resident individuals, Hindu Undivided Families (HUFs), and partnership firms (excluding LLPs) who file returns under Sections 44AD, 44ADA, or 44AE of the Income Tax Act.
It is for those with a total income of up to ₹50 lakh from business or profession. This includes small shopkeepers, doctors, lawyers, or transport operators.
It also includes income from one house property, interest income, or family pension, as long as the total income stays within ₹50 lakh.
A new update this year allows taxpayers with long-term capital gains (LTCG) of less than ₹1.25 lakh to file ITR-4.
Who Cannot Use ITR-4?
You cannot file ITR-4 if:
Your total income is more than ₹50 lakh
You own foreign assets
You hold unlisted equity shares
You are a company director
You are a Non-Resident Indian (NRI)
You have more than one house property
You are a professional whose income exceeds the limits set under Section 44ADA
What Are the New Changes in ITR-4?
As per the latest update under Notification GSR 271(E) by the Finance Ministry, some key changes have been made to simplify tax filing for small taxpayers:
The new form includes updated sections for personal details, income sources, and deductions.
It also covers deductions under new provisions like Section 80CCH, introduced to support those opting for the new tax regime.
These changes aim to make return filing easier for small taxpayers under the presumptive tax scheme.
