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ITR-4 · Sugam · AY 2026-27
ITR-4 Sugam: presumptive income, no books
Declare a percentage of your turnover as income and be done with the accounts. For a resident individual, HUF or firm other than an LLP, with presumptive income and total income up to ₹50,00,000.
6% on digital receipts, 8% on the rest for a business; 50% of receipts for a profession; a flat monthly figure per goods carriage.
Who files ITR-4
ITR-4 is available to a resident individual, HUF, or firm other than an LLP, declaring income presumptively:
- Section 44AD — business. 6% of receipts taken digitally and 8% of the rest, declared as income. Available up to a turnover of ₹3 crore where cash receipts are within 5% of the total, and ₹2 crore otherwise.
- Section 44ADA — profession. 50% of gross receipts, for the specified professions: medicine, law, engineering, architecture, accountancy, technical consultancy and interior decoration. Available up to ₹75 lakh of receipts where cash receipts are within 5%, and ₹50 lakh otherwise.
- Section 44AE — goods carriages. ₹1,000 per tonne per month for a vehicle over 12 tonnes, ₹7,500 per month otherwise, for up to ten vehicles held at any time in the year.
- Alongside the presumptive income: salary or pension, one house property, and other sources.
- Long-term capital gain u/s 112A up to ₹1,25,000, under the same block the Sahaj carries (D20(a) on the Sugam).
- Total income not exceeding ₹50,00,000.
Declaring presumptively means you do not maintain books for that business and are not required to have them audited — as long as you keep declaring at or above the presumptive rate.
Presumptive is a floor, not a ceiling
The percentages are minimums. If your actual profit is higher, the actual profit is what you declare. Declaring below the presumptive rate is what triggers books and audit — and a five-year lock out of 44AD.
When ITR-4 becomes ITR-3
Presumptive income alone is not enough. Any one of these eight takes the Sugam away.
| If this is true for you | Which form instead |
|---|---|
| You have capital gains in the same year, beyond the 112A allowance the form carries | ITR-3 |
| You hold foreign assets or have foreign income | ITR-3 |
| You are a director in a company | ITR-3 |
| Gross receipts exceed the threshold — ₹3 crore for 44AD, ₹75 lakh for 44ADA | ITR-3 |
| You are a Non-Resident or RNOR | ITR-3 |
| Total income exceeds ₹50,00,000 | ITR-3 |
| You held unlisted equity shares during the year | ITR-3 |
| You have brought-forward losses, or a current-year capital or business loss | ITR-3 |
These are the checks BharatTax itself runs. The product applies the same rules to your figures as you enter them and moves you to the right form before you file — it does not let you submit a return on a form you are not eligible for.
What ITR-4 asks for
The Sugam is short by design: no balance sheet, no profit and loss, four financial particulars and the income.
| Schedule | What it carries |
|---|---|
| Part A – General | Identity, address, nature of business with the CBDT business code, and the section being filed under. |
| Schedule BP | The presumptive computation itself: turnover split between digital and other receipts, the rate applied, and the income declared under 44AD, 44ADA or 44AE. |
| Financial particulars | Four figures as at 31 March — sundry debtors, sundry creditors, inventory and cash balance. Not a balance sheet. |
| Part B – Gross total income | Presumptive business income, salary, the one house property and other sources. |
| Part C – Deductions | Chapter VI-A, gated by regime. |
| Part D – Tax computation | Slab tax, rebate u/s 87A, surcharge, cess, interest u/s 234A/B/C and the fee u/s 234F. |
| Schedule IT / TDS / TCS | Advance tax and self-assessment challans, TDS on salary and on other income, and TCS. |
Key dates for AY 2026-27
Assessment year 2026-27 covers the income you earned in the previous year 2025-26 — 1 April 2025 to 31 March 2026.
A return filed after the due date attracts a late fee u/s 234F and interest u/s 234A, and losses other than house-property loss can no longer be carried forward. BharatTax computes 234A, 234B and 234C on the return itself, so the figure you see is the figure you pay.
How BharatTax prepares your ITR-4
The whole point of the Sugam is that there is little to prepare. What there is, BharatTax computes.
Enter the turnover
Split between receipts through banking channels and the rest — the split is what decides whether 6% or 8% applies, and whether your ceiling is ₹3 crore or ₹2 crore.
Add the rest of your income
Salary from Form 16, the house property, interest from your 26AS and AIS. The presumptive business sits alongside them.
Check advance tax
Presumptive filers pay advance tax in a single instalment by 15 March. BharatTax computes interest u/s 234B and 234C on what was actually paid and when.
Compare and file
Both regimes computed, a computation of income PDF, and the ITD JSON. Every download is checked against the CBDT’s own published schema file for ITR-4 before it reaches you, so a return the portal would reject is caught here instead.
ITR-4 — common questions
Can a limited liability partnership file ITR-4?
I am a doctor with ₹90 lakh of receipts. Can I use 44ADA?
What is the difference between the 6% and 8% rates?
Do I have to keep books if I file ITR-4?
I sold some shares this year and I have presumptive income. Which form?
Presumptive income, filed in an evening
Turnover in, the rate applied, the rest of your income alongside it, and both regimes compared before you file.