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Presumptive income tax return, ITR-4 (Sugam), Sec 58 (old 44AD, 44ADA, 44AE)

  • Small traders, shop owners, freelancers and professionals can declare income at a fixed percentage of turnover without full books.
  • Deadline: Due 31 August of the assessment year for non-audit business or profession (31 August 2026 for AY 2026-27, now passed). Belated return up to 31 December 2026.
  • Done in 2 working days after bank statements, turnover and balances
  • Prepared by your Savvy, checked by a CA
  1. Bank statements for the year
  2. Are you a director
  3. Check ITR-4 eligibility and presumptive limits
  4. Filed ITR-4 acknowledgement
The law and the stepsPay and start · ₹1,999Yearly, + 18% GST

Answer in brief

Small traders, shop owners, freelancers and professionals can declare income at a fixed percentage of turnover without full books. We check you qualify, work out presumptive income at 6%, 8% or 50%, fill the balance sheet items the form asks for, and file and e-verify ITR-4.

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From the official sources

What the law says, and what trips people up

From the official portal's manuals and FAQs, with the source for each point.

The law

  • Income-tax Act 1961, Sec 139(1) (now Sec 263(1)), Explanation 2 as substituted by Finance Act 2026

    Due date 31 August for business or profession not required to be auditedSource

  • Income-tax Act 1961, Sec 44AD (now Sec 58)

    Turnover up to ₹2 crore (₹3 crore if cash receipts are 5% or less); income at 6% of digital and 8% of other receipts, or moreSource

  • Income-tax Act 1961, Sec 44ADA (now Sec 58)

    Professional receipts up to ₹50 lakh (₹75 lakh if cash is 5% or less); income at 50% of receiptsSource

  • Income-tax Act 1961, Sec 44AE (now Sec 58)

    Goods carriage income on presumptive basis, up to 10 vehiclesSource

  • Income-tax Act 1961, Sec 115BAC(1A) (now Sec 202) and Form 10-IEA

    New regime is default; business filers opt out by Form 10-IEA on or before the Sec 263(1) (old Sec 139(1)) due dateSource

  • Income-tax Act 1961, Sec 234F (now Sec 428)

    Late fee ₹1,000 or ₹5,000 by incomeSource

  • Government fee

    No filing fee. Tax due is paid as self-assessment tax via e-Pay Tax before filing. Source: https://www.incometax.gov.in/iec/foportal/help/all-topics/e-filing-services/itr-4/itr-4-UM

  • Late fee or penalty

    After 31 August: Sec 428 (old Sec 234F) fee ₹1,000 (total income up to ₹5,00,000) or ₹5,000; Sec 423 (old Sec 234A) interest 1% a month on unpaid tax; the old regime option is not available in a late return with business income. Source: https://www.incometax.gov.in/iec/foportal/help/all-topics/e-filing-services/%20income%20tax%20returns-faq and https://calcguru.in/belated-return-after-due-date/

On the portal

  1. Login > e-File > Income Tax Returns > File Income Tax Return
  2. Select AY 2026-27, mode Online, then status
  3. Choose ITR-4 and Proceed with ITR-4
  4. Select reason for filing; answer the Form 10-IEA question and enter acknowledgement number and date if opting out
  5. Confirm Personal Information, Gross Total Income, Disclosures and Exempt Income, LTCG 112A, Total Deductions, Taxes Paid and Total Tax Liability
  6. Enter turnover split and financial particulars in the business disclosures
  7. Pay Now if tax is payable; Preview, validate and e-verify

What trips people up

  • Foreign client receipts entered net of platform or bank fees

    Gross receipts are the invoice value converted to rupees; use FIRA and bank advicesSource

  • Financial particulars left blank

    Sundry creditors, inventories, sundry debtors, bank balance and cash in hand are mandatory fieldsSource

  • Wanted old regime but filed after the due date

    A business filer loses the old regime option in a late return for that yearSource

  • Director or holder of unlisted shares filed ITR-4

    Such persons must use ITR-3Source

  • Returning to new regime after opting out earlier

    Answer Yes to the re-entry question and file Form 10-IEA; only one re-entry is allowedSource

People ask

What is the due date for ITR-4 this year?

31 August 2026 for non-audit business and professional income, under the amended Sec 139(1).Source

Do I need to keep books under 44ADA?

Presumptive income is 50% of gross receipts; the form still asks for key balances as on 31 March.Source

Can a freelancer with foreign clients use 44ADA?

Yes, if gross receipts are within the limit; measure them at invoice value in rupees.Source

How is advance tax paid under the presumptive scheme?

In one instalment by 15 March; shortfall attracts interest.Source

Can an LLP file ITR-4?

No. ITR-4 is for individuals, HUFs and firms other than LLPs.Source

IDFD

How we solve it: 4 steps

Every line tracked live.

Step 1 of 4 · What we need from you

Tap each one you already have

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  • Bank statements for the year
  • Gross turnover or receipts
  • GSTIN and GST outward suppliesOptional
  • Debtors, creditors, stock, cash on 31 March
  • Foreign invoices and FIRA, if anyOptional
  • Form 10-IEA acknowledgement, if old regimeOptional
  • AIS, TIS and Form 168 (old Form 26AS)
  • Validated bank account
  • Advance tax challansOptional

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Yearly. Delivered in 2 working days after bank statements, turnover and balances. Due: Due 31 August of the assessment year for non-audit business or profession (31 August 2026 for AY 2026-27, now passed). Belated return up to 31 December 2026.

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