ITR-4: All You Need to Know

When it comes to filing income tax returns, the form you choose depends on the type of income you earn. For small business owners, professionals, and firms opting for the presumptive income scheme, the ITR-4 (Sugam) form makes the process simple and hassle-free. In this blog, we’ll discuss everything you need to know about ITR-4, its eligibility, documents required, and the step-by-step process to file it online.

What is ITR-4?

ITR-4 also known as SUGAM is the Income tax return form which is available for taxpayers with business income who have opted for the presumptive income scheme u/s 44AD, 44ADA, 44AE of the income tax act 1961. 

Eligibility to file ITR-4 

Here is who all can file the ITR-4 for the assessment year- 

• A resident individual, HUF, firm having income below ₹50 Lakh during the FY
• Anyone having income from business and profession u/s 44AD, 44ADA or 44AE
• Long-term capital gains below Rs. 1.25 lakh 
• Income from salary or pension
• Agricultural income up to Rs. 5000
• Income from one house property
• Other sources such as interest from saving account/ deposits/ income tax refund/ enhanced compensation, family pension or any other interest income.
• Income from lotteries winnings and horse races are excluded.

Eligibility to File ITR-4

Here is who all cannot file the ITR-4 for the assessment year- 

• An individual / HUF / Firm (Other than LLP) who is a resident but not ordinarily resident or non-resident indian. 
• Having total income of more than Rs. 50 lakh
• Short term capital gains
• ‘Long term capital gains of more than Rs. 1.25 lakh 
• Having agricultural income of more than Rs. 5000
• Is director in a company 
• Income from more than one house property
• Income from lottery winnings, horse races, income from taxable at special rates u/s 115BBDA or 115BBE
• Having unlisted equity shares 
• Have deferred income tax on ESOP received form employer
• Not covered under ITR-4 eligibility criteria. 

Documents Required to File ITR-4

Here are some of the documents that you need in order to file ITR-4:

• Form 16
• Form 26AS & AIS
• Form 16A
• Bank Statements
• Housing Loan Interest Certificates
• Donation Receipts 
• Rental Agreement
• Rent Receipts
• Investment premium payment receipts.

How to File an Income Tax Return?

Here is the full process to file a ITR-4 also known as SUGAM which is a simple income tax return- 

• Visit the income tax e-filing portal
• Log in to the portal using user ID and password.

• Click on e-File and then Income Tax Returns 
• Next click on File Income Tax Return.

• Now, select the Assessment Year as 2025-26 
• Choose the Mode of Filing as online 
• Click on continue.

• Click Resume Filing if filed and pending for submission. 
• If you want to delete the saved return 
• Click on start New Filing if you want to file a new fresh return

• Next select the applicable status and then proceed. 

• Choose applicable ITR from the drop-down menu
• Now, click on proceed with ITR-4

• Once ITR applicable is selected, click on Ok

• A document list will appear note them and click on let’s get started option

• Now, choose the checkbox indicating for which reason you are filing ITR and then click on continue. 

• Next, review all the data and if necessary edit them. 
• Enter the remaining data and confirm    

Note: In case you opt out of the new tax regime for the assessment year the select yes, no or not applicable. If you want to opt out select yes otherwise no, if yes then enter the date of filing and acknowledgement number.  

• Next enter details of income and deduction, confirm and proceed. 

• A summary of tax computation will be displayed, if there is a tax liability then pay now or pay later options will be available from which you can choose as per your preference. 

• If Pay Now is selected then the page will be redirected to e-pay Tax service for tax payment
• Click on continue.

• Once payment is successful you will receive a success message. 
• Next, click on Back to Return Filing in order to complete ITR filing.

• In case you choose the Pay Later option then you can complete payment after ITR filing. 
• If there is no tax liability or eligible for refund then click on preview and submit return  

• On the Preview and Submit Return page, details like name, place and other details will be auto updated 
• Now, select the checkbox and click on proceed to validation.

•   Once the validation is successful then click on preview 

Note: If some list of errors are displayed then go back and fix those errors in the form. 

• On the preview return page click on proceed to validate 

• Once validation is successful, click on proceed to verification  

• On the next page, choose the preferred option for verification and click on continue. 

• On the e-verification page, select the option to e-verify and click on continue. 
• Once e-verification is complete then a success message is displayed with transaction ID and acknowledgement number. A confirmation message will also be sent to the registered mobile number and email ID.

Conclusion

Filing ITR-4 (Sugam) is a straightforward and simplified way for small business owners, professionals, and firms under the presumptive income scheme to stay compliant with income tax rules without the burden of maintaining detailed books of accounts. By understanding the eligibility criteria, exclusions, and required documents, taxpayers can ensure a smooth filing experience through the Income Tax e-filing portal. Staying updated, reviewing details carefully, and completing e-verification on time not only helps avoid penalties but also ensures faster processing of refunds. With the right preparation, filing ITR-4 for AY 2025–26 can be a stress-free step toward responsible financial management.