Who cannot file ITR-4 in AY 2026-27?
- Under Section 44AD, turnover is capped at ₹2 crore, rising to ₹3 crore if cash receipts do not exceed 5%.
- Under Section 44ADA, gross receipts are capped at ₹50 lakh, rising to ₹75 lakh if cash receipts do not exceed 5%.
Does dropping presumptive scheme require switch from ITR-4?
When should an ITR-4 filer switch to ITR-3?
- Do not wish to continue with the presumptive tax system and want to claim actual business expenses
- Cross the stipulated turnover or gross receipts limits
- Start a business not covered under presumptive taxation
- Have a total income above ₹50 lakh in financial year 2025-26
- Have capital gains that cannot be reported in ITR-4 or incur capital losses
- Start speculative or commission-based activity
- Hold unlisted shares or become a company director
- Become non-residents, have foreign assets or income, or hold signing authority for a foreign bank account
- Have deferred tax on eligible start-up ESOPs
- Have agricultural income above ₹5,000 or earn special-rate income
- Have income from more than two houses
- Wish to carry forward business losses
What changed in ITR-4 for AY 2026-27?
Disclaimer: This is only for informational and educational purposes. Please consult a qualified expert for the latest laws and regulations.