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Individual having Income from Business / Profession for AY 2026-2027

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1. ITR-3 – Applicable for Individual & HUF
This return is applicable for Individual & Hindu Undivided Family (HUF):
Having Income under the heads Salary/Pension, House Property, Profits or Gains of Business or Profession, Capital Gains or Income from Other sources.

Who is not eligible for filing ITR-1, ITR-2 or ITR-4
2. ITR-4 (SUGAM) – Applicable for Individual, HUF & Firm (Other than LLP)
This return is applicable for an Individual or Hindu Undivided Family (HUF), who is Resident other than not ordinarily Resident or a Resident Firm (other than LLP) having total Income up to ₹ 50 lakh and having income from Business or Profession which is computed on a presumptive basis (u/s 44AD / 44ADA / 44AE of the Income Tax Act,1961) and income from any of the following sources:Salary / PensionTwo House PropertiesOther sources (Interest, Family Pension, Dividend etc.)Agricultural Income up to ₹ 5,000Capital Gain Income u/s 112A of the Income Tax Act,1961 up to  upto ₹ 125000

Note:1

ITR-4 cannot be used by a person who:

  1. is a Director in a Company, or
  2. has short term Capital gains
  3. has Long-term capital gain u/s 112A  (Income Tax Act,1961) exceeding Rs.1.25 lakhs
  4. has held any unlisted equity shares at any time during the previous year
  5. has any asset (including financial interest in any entity) located outside India, or
  6. has signing authority in any account located outside India, or 
  7. has income from any source outside India,
  8. is a person in whose case payment or deduction of tax has been deferred on ESOP
  9. who has  brought any loss or loss to be carried forward under any head of income; or
  10. has total income exceeding Rs. 50 lakhs. 
  11. have income from retirement benefit account maintained in a notified country u/s 89A.
  12. have income from retirement benefit account maintained in a country other than notified country u/s 89A.
  13. have any income chargeable at special rate.

Note:2  

Form ITR-4 (SUGAM) is not mandatory. It is a simplified return form to be used by an assessee, at his / her option, if he / she is eligible to declare Profits and Gains from Business or Profession on presumptive basis under Section 44AD, 44ADA or 44AE of Income Tax Act,1961

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