ITR-4 (Sugam)

ITR-4 Sugam, notified annually under Rule 12 of the Income Tax Rules, 1962, is the shortest ITR form, designed for residents under presumptive taxation. Eligibility for AY 2026-27 (FY 2025-26): resident individual/HUF/partnership firm (non-LLP), total income up to Rs. 50 lakh, business or professional income only under the presumptive schemes (salary, up to two house properties and other-source income are allowed alongside), no capital gains other than listed-equity LTCG under Section 112A up to Rs. 1.25 lakh, no foreign assets, no signing authority over a foreign account, no income from any source outside India, not a company director, not holding unlisted equity. The ITR-4 for tax year 2026-27 has not been notified yet.

Deadline: 31 August after the year ends if your accounts are not audited (Finance Act 2026; applies to FY 2025-26 and tax year 2026-27). ITR-4 is the simpler form and fits many presumptive-scheme professionals, provided you qualify for the scheme (44ADA covers only the specified professions), total income is within Rs. 50 lakh, and you hold no foreign assets or foreign accounts — a balance left in a foreign PayPal or Payoneer account can count. Fees from foreign clients for work you do in India are generally treated as Indian-source, but the form does not say so expressly; if most of your income is from abroad, confirm the form with a CA. Otherwise it is ITR-3.