Who is not eligible to file ITR-4?
Individuals or entities that do not meet the criteria for presumptive taxation under sections 44AD, 44ADA, or 44AE are not eligible to file ITR-4. This includes those with total income exceeding Rs.50 lakh or with income from more than one house property, capital gains, or foreign assets.
Individuals with total income exceeding ₹50 lakhs.
Company directors.
Investors in unlisted equity shares.
Those required to maintain books under the Income Tax Act.
RNORs and Non-Residents.
Income from lottery, racehorses, gambling, etc.
More than one house property.
Taxable capital gains (short or long term).
Agricultural income over ₹5,000.
Residents with foreign assets or foreign signing authority.
Those claiming foreign tax relief under Sections 90/90A/91.
Income from cryptocurrencies or Virtual Digital Assets.
Individuals subject to TDS under Section 194N.
Major Changes in ITR-4 Form from AY 2025-26
Taxpayers can now report Long-Term Capital Gains (LTCG) under Section 112A in ITR-1 if gains from listed equity shares and equity-oriented mutual funds do not exceed ₹1.25 lakh, and there are no carried forward capital losses. Previously, such reporting required ITR-2, but this update eases compliance for small investors.
Under Section 115BAC, the new tax regime is the default. Taxpayers can still choose the old regime by indicating their preference in the ITR. If opting out for the first time in AY 2025–26, Form 10-IEA must be filed before the return due date and its acknowledgement referenced.
Further, deductions under Sections 80C to 80U must now be selected via a drop-down list, with specific sub-sections entered for better accuracy. For taxpayers with foreign retirement income (Section 89A), new fields enable easier relief tracking.
Aadhaar Enrolment IDs are no longer valid. Only 12-digit Aadhaar numbers are now accepted. Additionally, Schedule-TDS now includes a separate column to specify the section under which TDS was deducted, allowing better traceability and compliance.
Major changes in ITR-4 form in AY 2023-24 and AY 2024-25
In AYs 2023–24 and 2024–25, the ITR-4 Form witnessed updates that increased transparency and improved user experience. Notably, both years introduced revised declaration fields for opting under the concessional tax regime as per section 115BAC, ensuring clear documentation of tax choices.
Additionally, changes were introduced to capture more granular details about financial transactions and digital payments, aligning tax filings with the broader digitisation goals of the government. The Department also added new validation rules and pre-filled data to reduce errors. The ability to report interest income in more defined categories was introduced to help simplify reporting under “income from other sources,” making tax filing more accessible for small taxpayers.
Major changes made in ITR-4 for AY 2022-23
The ITR-4 Form for AY 2022–23 brought several enhancements aimed at simplifying the compliance process for small taxpayers. One of the key changes was the pre-filling of data for taxpayers using the Income Tax portal, which allowed details such as salary income, TDS, and bank interest to be auto-populated.
Additionally, a declaration field was introduced for those opting under the new tax regime. This ensured that taxpayers provided express consent if they chose to be taxed under section 115BAC. The form also improved the interface to allow better classification of income from other sources and updated technical validations for smoother online submission. These changes collectively improved accuracy and ease of filing.
Major changes made in ITR-4 for AY 2021-22
In AY 2021–22, the ITR-4 Form incorporated pandemic-related relief measures and reporting guidelines. One key change was the requirement to declare if a taxpayer had deferred tax payments on ESOPs received from eligible start-ups, under the relief provided by the Finance Act, 2020.
Also, the taxpayer had to provide details of cash transactions above Rs.2 lakh for certain business activities, ensuring transparency. The government also enabled auto-population of TDS, salary income, and interest details based on Form 26AS. These additions ensured better matching of tax data and helped reduce tax evasion. The overall structure remained the same, but compliance and transparency were strengthened.
Major changes made in ITR-4 for AY 2019-20
For AY 2019–20, the ITR-4 Form saw major changes to enhance tax compliance and improve transparency. One key addition was mandatory disclosure of details for taxpayers holding directorship in any company or owning unlisted equity shares, effectively disqualifying them from using ITR-4.
The form also introduced changes in income classification and required the taxpayer to provide more information on turnover, particularly for businesses under GST. The validation logic was upgraded to reduce filing errors and ensure accurate return submissions. These changes made ITR-4 more robust, aligning it with the broader objective of reconciling income and ownership patterns with regulatory records.
How to file ITR-4 form through Income Tax portal?
To file ITR-4 through the Income Tax portal, log in using your PAN and password. Select the ‘File Income Tax Return’ option, choose the assessment year, and select ITR-4 as the applicable form. The portal offers both online and offline modes for filing.
If using the offline utility, download the pre-filled JSON file, complete the form, and upload it. If filing online, enter the relevant details directly on the portal, verify the form with a digital signature or EVC, and submit. After successful submission, download the acknowledgment for your records. Make sure to keep all relevant documents and declarations ready before starting the process.
What is the structure of ITR-4?
The ITR-4 Form is divided into multiple sections, covering personal information, income details, deductions, tax computation, and verification. Part A consists of general details such as name, PAN, Aadhaar number, and bank account information. Part B captures gross total income and tax liability.
The form also includes schedules for income from business under presumptive taxation, deductions under Chapter VI-A, and tax details such as TDS and advance tax. Taxpayers must declare whether they opt for the new tax regime under section 115BAC. The structure is simplified, making it suitable for small taxpayers with straightforward income sources, allowing them to file returns without the burden of detailed accounting.
Verification of ITR-4
The final section of the ITR-4 Form is the verification part, which must be completed by the taxpayer to confirm the truthfulness of the information provided. The verification must include the taxpayer’s name, father’s name, and capacity (e.g. individual, partner).
Once the return is filled, it must be verified electronically via an Electronic Verification Code (EVC) or a Digital Signature Certificate (DSC). If the taxpayer does not use either method, they must manually sign and send the ITR-V to the CPC office in Bengaluru within 30 days. Without verification, the return will not be processed by the Income Tax Department.
Conclusion
ITR-4 (SUGAM) is a simplified tax return form aimed at small taxpayers opting for presumptive taxation under sections 44AD, 44ADA, and 44AE. It offers a convenient method to report business or professional income without maintaining detailed accounts.
While straightforward in structure, it excludes individuals with complex income streams such as capital gains or foreign assets. Regular updates to the form ensure alignment with current tax rules. Filing ITR-4 online through the Income Tax portal with proper verification helps ensure timely processing and compliance. For eligible taxpayers, it remains a practical option for efficient and simplified tax filing.
