ITR-4 Sugam: Who Can File and How to File It

ITR-4 Sugam reports income taxed under a presumptive scheme, where you declare a fixed share of turnover or receipts as profit. The form covers assessment year (AY) 2026-27.
 

• Eligible: residents with total income up to Rs. 50,00,000
• Business: turnover up to Rs. 2 crore under Section 44AD, or Rs. 3 crore if cash receipts stay within 5%
• Profession: receipts up to Rs. 50 lakh under Section 44ADA, or Rs. 75 lakh within the 5% cash limit
• Dates: 31 August 2026 has passed, and a belated return is open until 31 December 2026

• Late fee: Rs. 1,000 if total income is up to Rs. 5,00,000, and Rs. 5,000 above that

  
  

Check the exclusions before you pick the form, because a wrong form makes the return defective. Then ask Bajaj Finance which years of returns it needs for a self-employed home loan.

ITR-4 Sugam is the income tax return (ITR) form for taxpayers who use a presumptive scheme. Under a presumptive scheme, the law treats a fixed share of your turnover or receipts as profit, so you need not keep full books of account.

The three schemes are Section 44AD for small businesses, Section 44ADA for specified professions and Section 44AE for owners of goods carriages. The Income Tax Department issues the form for each assessment year. This guide covers AY 2026-27, which is financial year (FY) 2025-26.

A resident individual, Hindu Undivided Family or firm other than a limited liability partnership can file the form, if total income is Rs. 50,00,000 or less. Seven kinds of income fit in the form.
 

The Income Tax Department lists these conditions on its ITR-4 help page.

You cannot file ITR-4 Sugam if any one of ten conditions applies, and you then file ITR-3 instead. The ITR-3 guide covers that form.
 

Bajaj Finance does not offer home loans to Non-Resident Indians (NRIs).

ITR-4 Sugam covers Section 44AD, which fixes profit at 8% of turnover (6% for receipts through banks), and Section 44ADA, which fixes it at 50% of receipts. The limits rise when cash stays within 5% of receipts.
 

Expenses are deemed covered, so you cannot claim them separately. Deductions in Chapter VI-A, such as Section 80C, remain open in the old regime. If you declare less than the presumptive profit, you must keep books and may need a tax audit, and you then file ITR-3.

The new regime applies by default, and a taxpayer who files ITR-4 Sugam with business income opts for the old regime by filing Form 10-IEA before the due date under Section 139(1). Once you opt out of the new regime, you can return to it only once in your lifetime.

The Section 87A rebate is Rs. 60,000 in the new regime for income up to Rs. 12,00,000, and Rs. 12,500 in the old regime for income up to Rs. 5,00,000. Compare the two regimes with your own figures, as the tax regime guide explains.

The form takes 2 house properties for AY 2026-27, and it accepts only the 12-digit Aadhaar number. A media report adds two more changes: all active bank accounts go in the business schedule, and the schedule for tax deducted at source (TDS) has a new column for the section.

The Aadhaar Enrolment ID of 28 digits no longer works as an identifier. Foreign retirement account fields are gone from the form, but the duty to report foreign assets stays. Check each point against the form that you download.

The due date of 31 August 2026 has passed, so a return filed now is belated. You can file a belated return until 31 December 2026.
 

Interest under Section 234A runs at 1% per month on tax that you still owe after the original date. Pay that tax before you file. ITR-1 and ITR-2 had an earlier original date of 31 July 2026.

Seven steps take you from your records to a verified ITR-4 Sugam return.
 

1. Keep your Permanent Account Number (PAN), Aadhaar, bank account details and turnover records ready.
2. Download your Annual Information Statement (AIS) and Form 26AS, and compare them with your own records.
3. Log in to the e-filing portal at incometax.gov.in, and choose ITR-4 for AY 2026-27.
4. Check the pre-filled details, and add your business code, turnover and presumptive income.
5. Choose the regime, enter your deductions if you use the old regime, and read the tax computation.
6. Pay any tax that is due, and submit the return.
7. E-verify the return within 30 days with an Aadhaar one-time password (OTP), net banking or another method, as the e-verification guide explains.

Sunita Agarwal, 39, runs a hardware shop in Indore. Her CIBIL Score is 748, her turnover is Rs. 1,50,00,000, and she earns Rs. 30,000 of interest. She compares receipts that arrive fully by bank transfer with receipts that arrive in cash.

Formula used: Total income = presumptive rate × turnover + interest income. Tax is on the new regime slabs for FY 2025-26, with the Section 87A rebate and 4% cess.

Digital receipts cut her tax from Rs. 31,200 to nil. They also show Rs. 25,000 less monthly income on the return, which lowers the income that a lender can read from it.

A lower presumptive rate lowers your tax and also lowers the income that your return shows. Bajaj Finance reads the income on your return alongside your bank statements when it assesses a self-employed home loan.

Ask Bajaj Finance which years of returns and which other documents it needs. In the Indore example, the return shows Rs. 77,500 a month with digital receipts and Rs. 1,02,500 a month with cash receipts.

Approval timelines can extend where income or business records need clarification, and minimum income thresholds can differ by city. Check your home loan eligibility before you apply.