File ITR-4 Sugam Online for Presumptive Taxation FY 2025-26 (AY 2026-27)
Expert CA & Tax Lawyer-assisted ITR-4 e-filing for small businesses under Section 44AD, professionals under 44ADA, and transport operators under 44AE. Simplified presumptive taxation filing for Financial Year 2025-26 (Assessment Year 2026-27) with no books of accounts maintenance required. File before 31st July 2026 deadline!
✓ No Books Required
Simple filing with presumptive income calculation
✓ Lower Tax Rates
6-8% deemed profit on turnover/receipts
✓ No Audit Hassle
Exemption from mandatory tax audit requirements
What is ITR-4 Sugam Form for FY 2025-26?
ITR-4 (Sugam) is a simplified Income Tax Return form designed for individuals, HUFs, and partnership firms (except LLP) opting for presumptive taxation schemes under Sections 44AD, 44ADA, and 44AE for Financial Year 2025-26 (Assessment Year 2026-27). This form eliminates the need for maintaining detailed books of accounts and tax audit, making compliance easy for small businesses and professionals.
Key Highlights for AY 2026-27: ITR-4 applies deemed profit rates (6% or 8% for businesses, 50% for professionals, fixed rates for transport) on gross turnover/receipts instead of actual profit calculation. The due date for filing is 31st July 2026. Maximum turnover limit is ₹2 crore for Section 44AD businesses and ₹50 lakh for Section 44ADA professionals.
ITR-4 E-Filing Made Simple with DisyTax
Our expert team of Chartered Accountants and Tax Lawyers specializes in ITR-4 Sugam filing for small businesses and professionals under presumptive taxation. We handle complete turnover calculation, deemed profit computation, tax planning, and e-filing for FY 2025-26, ensuring 100% compliance without the hassle of maintaining books of accounts. Get started today!
Understanding Presumptive Taxation Schemes for AY 2026-27
Presumptive taxation is a simplified tax regime introduced by the Income Tax Department to reduce compliance burden for small taxpayers. Instead of maintaining detailed books and calculating actual profit, the law presumes a certain percentage of turnover/gross receipts as profit, on which tax is calculated.
- Section 44AD: For businesses (trading, manufacturing, services) with turnover up to ₹2 crore
- Section 44ADA: For specified professionals (doctors, CAs, lawyers, etc.) with gross receipts up to ₹50 lakh
- Section 44AE: For goods carriage/transport operators owning trucks/vehicles
Benefits of Presumptive Taxation
Section 44AD
Business Presumptive Scheme
Key Benefits:
- No need to maintain regular books of accounts
- Exemption from tax audit under Section 44AB
- Lower deemed profit rate of 6% if receipts are digital
- Applicable to retail, wholesale, manufacturing businesses
- Advance tax payable in one installment (15th March)
Section 44ADA
Professional Presumptive Scheme
Eligible Professionals:
- Doctors (Medical, Dental, Veterinary practitioners)
- Chartered Accountants, Cost Accountants, Company Secretaries
- Lawyers, Advocates, Legal consultants
- Engineers, Architects, Interior Designers
- Technical consultants, Film artists, Authorized representatives
- Advance tax in one installment (15th March)
Section 44AE
Transport Business Scheme
Applicable To:
- Goods carriage/transport operators owning trucks
- Deemed income: ₹7,500 per vehicle per month (or actual days)
- Maximum 10 goods vehicles at any time during the year
- Exemption from maintaining books and audit
- Option to declare income higher than deemed income
Who Should File ITR-4 Sugam for AY 2026-27?
ITR-4 is applicable to individuals, HUFs, and partnership firms (excluding LLP) who opt for presumptive taxation schemes during Financial Year 2025-26. Understanding eligibility ensures you choose the right filing option.
Eligibility Criteria for ITR-4 Filing AY 2026-27
- Section 44AD Business: Resident individuals, HUFs, partnership firms with business turnover up to ₹2 crore
- Section 44ADA Professionals: Specified professionals (doctors, CAs, lawyers, etc.) with receipts up to ₹50 lakh
- Section 44AE Transport: Goods carriage operators with up to 10 vehicles
- Total Income: Overall income from all sources (including other incomes like salary, house property)
- Residential Status: Resident and Non-Resident Indians (but NRI only for 44AE)
- Digital Receipts: Businesses receiving payments digitally qualify for 6% profit rate under 44AD
- Cash Receipts: Businesses with substantial cash receipts fall under 8% profit rate
- Partnership Firms: Eligible if not constituted as LLP and opt for presumptive scheme
- High Turnover: Business turnover exceeds ₹2 crore (must file ITR-3 with regular books)
- High Professional Receipts: Professional receipts exceed ₹50 lakh (file ITR-3)
- Agency Business: Commission agents, brokerage businesses (ineligible for Section 44AD)
- LLPs & Companies: Limited Liability Partnerships and companies (file ITR-5 or ITR-6)
- Multiple Business Activities: Income from agency, commission, plying/hiring/leasing goods carriages (except 44AE)
- Opting Out: If you claim actual profit lower than presumptive rates, must file ITR-3
- Directors: Individuals serving as directors in any company (file ITR-2 or ITR-3)
- Foreign Assets/Income: Individuals with foreign assets exceeding reporting threshold
- Capital Gains: Significant capital gains from property or investments (use ITR-2 or ITR-3)
- Brought Forward Losses: If carrying forward business losses from previous years (file ITR-3)
ITR-4 Due Date for FY 2025-26 (AY 2026-27)
Last Date to File: 31st July 2026
The due date for filing ITR-4 Sugam for Financial Year 2025-26 (Assessment Year 2026-27) is 31st July 2026 for all presumptive taxation taxpayers (Sections 44AD, 44ADA, 44AE). There is no extension for audit cases since presumptive scheme exempts you from tax audit.
Advance Tax Payment: If your estimated tax liability exceeds ₹10,000, pay advance tax in one installment by 15th March 2026 (during FY 2025-26) to avoid interest under Section 234C.
File on time to avoid penalties! Start your ITR-4 e-filing now with expert CA assistance.
Documents Required for ITR-4 Filing AY 2026-27
Even though ITR-4 doesn't require maintaining detailed books of accounts, you must keep basic documents for verification and to calculate gross turnover/receipts accurately for FY 2025-26.
Turnover/Receipt Details
Total sales/turnover summary, service receipts, professional fees collected
Bank Statements
All business bank accounts showing digital and cash receipts for FY 2025-26
GST Returns (if applicable)
GSTR-1, GSTR-3B showing total sales/turnover for reconciliation
Form 26AS / AIS
TDS/TCS details from clients/customers, advance tax payment details
PAN & Aadhaar
PAN card and Aadhaar card (linking mandatory for e-filing)
Vehicle Details (44AE)
Registration certificates, ownership period, number of vehicles owned
Other Income Proofs
Salary Form 16, rental receipts, FD interest certificates (if any)
Investment Proofs (80C/80D)
LIC premiums, PPF, ELSS, health insurance for deduction claims
Business Registration
GSTIN certificate, shop license, professional registration certificates
Previous Year ITR
ITR-V of FY 2024-25 (AY 2025-26) if continuing presumptive scheme
How to Calculate Income Under Presumptive Taxation
Understanding profit calculation under each presumptive scheme helps you estimate your tax liability accurately for FY 2025-26.
| Scheme | Applicable To | Turnover/Receipt Limit | Deemed Profit Rate | Calculation Method |
|---|---|---|---|---|
| Section 44AD | Small businesses (retail, wholesale, manufacturing, services) | Up to ₹2 crore | 6% (digital) / 8% (cash) | Gross Turnover × 6% or 8% = Deemed Profit (taxable income) |
| Section 44ADA | Specified professionals (doctors, CAs, lawyers, architects, etc.) | Up to ₹50 lakh | 50% | Gross Professional Receipts × 50% = Deemed Profit (taxable income) |
| Section 44AE | Goods carriage/transport operators | Up to 10 vehicles | ₹7,500 per vehicle per month | Number of Vehicles × ₹7,500 × Months Owned = Deemed Income |
Practical Calculation Examples for AY 2026-27
- Scenario: Retail shop owner with total turnover ₹80 lakh (₹60 lakh digital + ₹20 lakh cash)
- Calculation: (₹60 lakh × 6%) + (₹20 lakh × 8%) = ₹3.6 lakh + ₹1.6 lakh = ₹5.2 lakh
- Deemed Profit (Taxable Income): ₹5.2 lakh
- Tax Payable: After deductions under 80C, 80D, calculate tax as per applicable slabs
- Scenario: Doctor with total professional receipts ₹40 lakh in FY 2025-26
- Calculation: ₹40 lakh × 50% = ₹20 lakh
- Deemed Profit (Taxable Income): ₹20 lakh
- Note: Can declare higher income but not lower under presumptive scheme
- Scenario: Truck owner with 5 goods vehicles owned throughout FY 2025-26
- Calculation: 5 vehicles × ₹7,500 × 12 months = ₹4.5 lakh
- Deemed Income (Taxable): ₹4.5 lakh
- Pro-rata Calculation: If vehicle purchased mid-year, count actual months of ownership
Penalties for Late Filing of ITR-4 for AY 2026-27
Filing your Income Tax Return after the due date can result in financial penalties and loss of benefits. Here's what you need to know about late filing implications for presumptive taxation:
Late Filing Fees (Section 234F)
Applicable even if no tax liability. Belated returns for ITR-4 can be filed till 31st December 2026.
Interest Charges (Sections 234A, 234B, 234C)
Section 234A: 1% per month on unpaid tax from 1st August 2026 till date of filing
Section 234B: 1% per month if self-assessment tax liability exceeds ₹10,000
Section 234C: 1% per month for non-payment of advance tax by 15th March 2026
Calculate Interest Penalty for Presumptive Taxation →Disqualification from Presumptive Scheme
Under Section 44AD, if you fail to file ITR by due date:
- Cannot claim presumptive taxation benefit for that year
- Must maintain regular books of accounts retrospectively
- May require tax audit if turnover exceeds ₹1 crore
- Lose 5-year continuity requirement under Section 44AD
How DisyTax Helps You File ITR-4 Sugam for AY 2026-27
Filing ITR-4 for presumptive taxation requires understanding of turnover calculation, deemed profit rates, and compliance requirements. DisyTax offers comprehensive support to make your ITR-4 filing accurate and hassle-free.
Scheme Eligibility Check
Our CA team analyzes your business/professional income to confirm eligibility for Section 44AD, 44ADA, or 44AE and recommends the best taxation option.
Turnover & Receipt Calculation
Accurate calculation of gross turnover from bank statements, GST returns, and receipts with proper segregation of digital vs cash receipts for 44AD.
Deemed Profit Computation
Expert Chartered Accountants calculate deemed profit as per applicable rates (6%/8% for 44AD, 50% for 44ADA, ₹7,500/vehicle for 44AE) for FY 2025-26.
Tax Optimization Planning
Our Tax Lawyers help claim all eligible deductions (80C, 80D, 80G, etc.) to minimize your tax liability under presumptive taxation.
Advance Tax Guidance
Timely calculation and payment reminder for advance tax (15th March deadline) to avoid interest penalties under Section 234C.
Error-Free E-Filing
Comprehensive validation with Form 26AS/AIS verification, accurate schedule filling, and digital signature assistance before submission to Income Tax portal.
GST-ITR Reconciliation
We reconcile your GST returns with ITR-4 turnover declaration to prevent mismatch notices from the Income Tax Department for businesses registered under GST.
44AD Continuity Management
For Section 44AD taxpayers, we track your 5-year continuity requirement and advise on implications of opting out before completion of mandatory period.
Notice Handling Support
Our Tax Lawyers represent you in case of scrutiny notices, defective return intimations, or queries from Income Tax authorities with proper documentation.
Next Year Tax Planning
Strategic guidance on whether to continue with presumptive taxation or switch to regular books for FY 2026-27 based on your business growth and tax implications.
What Small Business Owners Say About ITR-4 Filing with DisyTax
Join 10,000+ satisfied small business clients who trust our CA & Tax Lawyer team for presumptive taxation filing
"Running a small retail shop with ₹1.5 crore turnover, I was worried about maintaining books. DisyTax explained Section 44AD perfectly and filed my ITR-4 with 6% deemed profit. Saved me from audit hassle and tax compliance costs. Highly recommend for small traders!"
"As a freelance architect with ₹35 lakh receipts, DisyTax's CA team helped me file ITR-4 under Section 44ADA. The 50% deemed profit calculation made it so simple! No books maintenance, no audit - just straightforward filing. Very professional service!"
"I own 7 trucks for goods transport. DisyTax calculated my income perfectly under Section 44AE (₹7,500 per vehicle per month) and filed ITR-4 before deadline. Their Tax Lawyer also advised on when to switch from presumptive to regular books. Excellent guidance!"
"My dental clinic had ₹42 lakh receipts. DisyTax's team explained Section 44ADA benefits clearly and filed ITR-4 with all my other income sources (FD interest, rental). They also claimed 80C and 80D deductions properly. Great tax planning support!"
"Running an online clothing business with ₹1.8 crore turnover. DisyTax handled my ITR-4 filing under 44AD, reconciled GST returns, and segregated digital/cash receipts for 6%/8% calculation. Their advance tax reminder saved me from interest penalties. Superb service!"
"First time filing ITR-4 for my consultancy firm under Section 44ADA. DisyTax made it incredibly easy - calculated 50% deemed profit, filed all schedules correctly, and got refund processed in 30 days. Their CA team is very knowledgeable about presumptive taxation!"
Frequently Asked Questions - ITR-4 Sugam Filing FY 2025-26 (AY 2026-27)
ITR-4 is for individuals, HUFs, and partnership firms (not LLP) opting for presumptive taxation under Sections 44AD (business turnover up to ₹2 crore), 44ADA (professional receipts up to ₹50 lakh), or 44AE (transport with up to 10 vehicles). Both residents and non-residents can file ITR-4.
The last date to file ITR-4 Sugam for FY 2025-26 (AY 2026-27) is 31st July 2026 for all presumptive taxation taxpayers. There's no extension for audit cases since presumptive schemes exempt you from tax audit requirement. Late filing attracts penalties under Section 234F.
Under Section 44AD, deemed profit is 6% of turnover if you receive payments through digital modes (bank transfer, UPI, cards, NEFT, RTGS, cheques). For cash receipts, the deemed profit rate is 8%. Mixed receipts need to be calculated separately for accurate tax computation.
No, taxpayers opting for presumptive taxation (Sections 44AD, 44ADA, 44AE) are exempt from maintaining detailed books of accounts and tax audit. However, you must keep basic records like bank statements, bills, receipts to support your declared turnover/receipts if questioned by Income Tax authorities.
Yes, but Section 44AD has restrictions. If you opt for presumptive taxation under 44AD, you must continue for 5 consecutive years. Opting out before 5 years makes you ineligible for the next 5 years. Section 44ADA (professionals) and 44AE (transport) have no such restriction - you can switch yearly.
Section 44ADA applies to specified professionals: doctors (medical, dental, veterinary), chartered accountants, cost accountants, company secretaries, lawyers, advocates, architects, engineers, technical consultants, interior decorators, film artists, and authorized representatives with gross receipts up to ₹50 lakh.
No, under presumptive taxation, all expenses are deemed to be included in the deemed profit percentage (6%/8% for 44AD, 50% for 44ADA, fixed rate for 44AE). You cannot claim separate deductions for rent, salaries, electricity, etc. Only standard deductions under Chapter VI-A (80C, 80D, etc.) are allowed.
Taxpayers under presumptive taxation (Sections 44AD, 44ADA, 44AE) can pay entire advance tax in one installment by 15th March (of FY 2025-26) if estimated tax liability exceeds ₹10,000. Normal taxpayers pay in 4 installments, but presumptive taxation allows single payment without Section 234C interest.
If your business turnover exceeds ₹2 crore in FY 2025-26, you cannot use ITR-4. You must file ITR-3 with regular books of accounts. If turnover exceeds ₹1 crore (or ₹10 crore with <5% cash), tax audit under Section 44AB becomes mandatory. Plan accordingly before year-end.
Yes, partnership firms (but not LLPs) can opt for presumptive taxation under Section 44AD if business turnover is up to ₹2 crore. However, they cannot opt for Section 44ADA (professionals). Individual partners must report their share of income in their personal ITR separately.
Ready to File Your ITR-4 Sugam?
Simplify your tax compliance with presumptive taxation! Our expert Chartered Accountants and Tax Lawyers handle complete turnover calculation, deemed profit computation, and ITR-4 e-filing for FY 2025-26 (AY 2026-27) under Sections 44AD, 44ADA, and 44AE. Get accurate filing without maintaining books of accounts!
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