ITR Filing 2025: The Income Tax Department has notified the ITR-4 form for 2025-26, which is for small businessmen and professionals. Now those with long term capital gains up to ₹ 1.25 lakh can also fill it, thereby expanding its scope.
ITR Filing 2025: The Income Tax Department has notified the ITR-4 (Sugam) form for the assessment year 2025-26. This form is mainly for small businessmen, professionals and individuals who file returns under the Presumptive Taxation Scheme. The Income Tax Department has shared information in this regard on X (earlier Twitter) on 6 May 2025, which is based on Notification No. 40/2025 dated 29 April 2025. The new form has become effective from 1 April 2025.
Who is ITR-4 for?
ITR-4 is for resident individuals, Hindu Undivided Families (HUFs) and partnership firms (except LLPs) who pay tax under sections 44AD, 44ADA and 44AE of the Income Tax Act.
This is for those whose total income is up to ₹50 lakh, which includes income from business or profession, such as small traders, doctors, lawyers, or transporters.
It also covers income from one house property, interest income, or family pension, provided the total income does not exceed ₹50 lakh.
A new change this year is that now those taxpayers whose long term capital gain (LTCG) is less than ₹ 1.25 lakh can also file ITR-4.
Who cannot file ITR-4?
- Whose total income is more than ₹50 lakh
- Those who have foreign assets
- Those who hold unlisted equity shares
- Are a director in a company
Who are NRIs(Non-Resident Indians)
- Those who have more than one house property
- Professionals whose gross receipts exceed the limit under section 44ADA
What are the new changes in ITR-4?
The Finance Ministry has amended the Income Tax Rules under the GSR 271(E) notification. The aim is to simplify the process for small taxpayers. The new ITR-4 form now covers personal details, sources of income, and deductions (such as section 80CCH). This will help those adopting the new tax regime.
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