ITR-4, also called Sugam, is the return form for small businesses and professionals who declare income on a presumptive basis. If you run a small business, drive goods carriages, or work as a professional and you opt for presumptive taxation, ITR-4 lets you file without maintaining detailed books of account. The whole process is online on the income tax e-Filing portal, and much of your data comes pre-filled.
This guide walks through who can file ITR-4, what you need ready before you start, and the full step-by-step process on the portal for Assessment Year 2025-26. If you would rather hand it off, Regikart's tax filing team files presumptive returns end to end, including picking the right scheme and form.
Who can file ITR-4 (Sugam)?
ITR-4 can be filed by a resident individual, a Hindu Undivided Family (HUF), or a partnership firm (other than an LLP), provided total income for the year is up to Rs 50 lakh and the income falls within the categories below.
- Business income computed on a presumptive basis under Section 44AD (small businesses) or Section 44AE (goods carriage operators).
- Professional income computed on a presumptive basis under Section 44ADA (eligible professionals such as doctors, lawyers, architects, and consultants).
- Income from salary or pension.
- Income from one house property (ITR-4 cannot be used if you own more than one).
- Income from other sources, such as interest income or family pension.
- Long-term capital gains under Section 112A up to Rs 1.25 lakh, provided you have no brought-forward or carry-forward capital loss.
Not sure whether presumptive taxation is right for you, or which form applies? Our guides on ITR for freelancers and ITR for gig workers break down the choice, and salaried filers can start there.
Before you start: prerequisites
- You are a registered user on the e-Filing portal with a valid user ID and password.
- Your PAN is active and, ideally, linked with your Aadhaar. If PAN is not linked with Aadhaar it becomes inoperative, and some portal access is limited until you link it (payment under Section 234H may apply).
- Your residential status for the year is Resident - ITR-4 is not for non-residents.
- You have pre-validated at least one bank account so any refund can be credited.
- You have a valid mobile number linked with Aadhaar, the e-Filing portal, or your bank, for e-verification.
The seven sections of ITR-4
In online mode, ITR-4 is filled across a set of sections, followed by a preview where you validate everything before submitting. It helps to know what each section covers before you begin.
| Section | What it covers |
|---|---|
| Personal Information | Contact, filing type and bank details auto-filled from your e-Filing profile; also where you handle the tax-regime choice. |
| Gross Total Income | Income from salary/pension, one house property, business or profession, and other sources. |
| Disclosures and Exempt Income | Financial particulars of the business, GST gross receipts (optional), and any exempt income. |
| Total Deductions | Chapter VI-A deductions such as 80C, 80D, 80DD, 80U, 80E and 80GG. |
| Long-Term Capital Gains u/s 112A | LTCG up to Rs 1.25 lakh, where applicable. |
| Taxes Paid | TDS, TCS, advance tax and self-assessment tax already paid during the year. |
| Total Tax Liability | The computed income, tax, cess and interest for you to review. |
The new tax regime is now the default - and Form 10-IEA
This is the part that trips up business filers most, so it is worth getting right. The Finance (No. 2) Act, 2024 inserted Section 115BAC(1A), making the new tax regime the default for individuals, HUFs and most other assessees. If you want to be taxed under the old regime, you must explicitly opt out.
For someone with business or professional income, opting out is not a free yearly choice. You opt out by filing Form 10-IEA on or before the due date for filing your return under Section 139(1). Once you have opted out, you get only one chance to re-enter the new regime later - and once you switch back to the new regime, you cannot keep flipping between the two in future years.
Filing ITR-4 online, step by step
- Log in to the e-Filing portal with your user ID and password.
- On your Dashboard, go to e-File, then Income Tax Returns, then File Income Tax Return.
- Select Assessment Year 2025-26 and Mode of Filing as Online, and click Continue.
- If a saved draft exists, choose Resume Filing; to start fresh, choose Start New Filing.
- Select the Status that applies to you (Individual, HUF or Firm) and click Continue.
- Select ITR-4 from the dropdown and click Proceed with ITR-4.
- Note the list of documents you will need, then click Let's Get Started.
- Tick the checkbox for your reason for filing the return and click Continue.
- Work through each section - review the pre-filled data, add anything missing, and click Confirm at the end of every section.
- After confirming all sections, click Proceed.
The portal then computes your tax based on what you entered and shows a summary. What happens next depends on whether there is tax to pay.
If there is tax to pay
If the computation shows a tax liability, you get Pay Now and Pay Later options. Using Pay Now is recommended.
- Click Pay Now to be redirected to the e-Pay Tax service, then click Continue to make the payment.
- After a successful payment, a success message is shown - click Back to Return Filing to complete the return.
- If you choose Pay Later, you can pay after filing, but you risk being treated as an assessee in default, and interest on the tax payable may arise.
If there is no tax to pay or a refund is due
- Click Preview Return to move to the Preview and Submit page.
- On that page, your place, name and other details are auto-populated - select the declaration checkbox and click Proceed to Validation.
- Once internal validation succeeds, click Preview. If errors are listed, go back and fix them first.
- On the Preview of Return page, click Proceed to Validation, and once validated, click Proceed to Verification.
Verify your return within 30 days - this is not optional
Filing is not complete until you verify. On the Complete your Verification page, choose your preferred option and click Continue. e-Verification (the recommended e-Verify Now option) is the quickest and safest route - it is paperless and avoids posting a physical ITR-V.
If you select e-Verify Later, you must still verify within 30 days of filing. If you verify via ITR-V, send a signed physical copy to the Centralised Processing Centre, Income Tax Department, Bengaluru 560500, Karnataka, within 30 days.
Once verified, a success message shows your Transaction ID and Acknowledgement Number, and you receive a confirmation on your registered mobile and email.
Let Regikart file it for you
Presumptive returns look simple, but the tax-regime opt-out, Form 10-IEA timing, and choosing between 44AD, 44ADA and 44AE are exactly where small errors turn into notices and refund delays. If you would rather have a professional handle it, Regikart's tax filing service picks the right scheme and form, files ITR-4 on your behalf, and makes sure verification is completed on time.
About the author
Srishty
Senior Advisor at Regikart. Want to discuss this in the context of your business?