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Personal Finance News

Filing ITR‑4 under presumptive taxation in 2026? Investment disclosure is now mandatory

rajeev kumar
By Rajeev Kumar

3 min read | Updated on April 06, 2026, 18:59 IST

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SUMMARY

ITR-4 form is applicable for Individuals, HUFs and firms (other than LLPs) having a total income up to ₹50 lakh, including income from business and profession computed under sections 44AD, 44ADA or 44AE.

presumptive taxation change in itr-4

Here's what has changes for presumptive taxation scheme disclosure in ITR-4. | Image source: Shutterstock

In a first, the Central Board of Direct Taxes has mandated taxpayers opting for the presumptive taxation scheme to disclose their investments in ITR-4.

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The CBDT notified the revamped new ITR-4 (Sugam) recently. This form is applicable for Individuals, HUFs and firms (other than LLPs) having a total income up to ₹50 lakh, including income from business and profession computed under sections 44AD, 44ADA or 44AE, and long-term capital gains from equity up to ₹1.25 lakh.

The Board has added a new column under "Financial particulars of the business" in ITR-4, which now requires taxpayers opting for the presumptive taxation scheme to disclose their investments up to March 31, 2026. This change is applicable to ITR filing in 2026 for AY 2026-27 (FY 2025-26), and it was not required last year.

See the table below for a comparison of the details required under "Financial Particulars of the Business" in AY 2026-27 vs AY 2025-26.

Financial particulars of the business
AY 2026‑27AY 2025‑26
Partners / members’ own capitalPartners / members’ own capital
Secured loansSecured loans
Unsecured loansUnsecured loans
AdvancesAdvances
Sundry creditorsSundry creditors
Other liabilitiesOther liabilities
Total capital and liabilitiesTotal capital and liabilities
Fixed assetsFixed assets
Investments—
InventoriesInventories
Sundry debtorsSundry debtors
Balance with banksBalance with banks
Cash‑in‑handCash‑in‑hand
Loans and advancesLoans and advances
Other assetsOther assets
Total assetsTotal assets
Source: ITR 4 forms for AY 2025-26 and AY 2026-27

Under the presumptive taxation scheme, small businesses, professionals and freelancers can declare an estimated percentage of their gross revenue as their profits. Further, instead of tracking every line item of expense, the taxpayers may simply declare, say, 50% of their gross revenue as income. Sharing the investment details in ITR-4 has become an additional reporting requirement for such taxpayers in AY 2026-27.

"A new column has been introduced in ITR-4 under the head 'Financial Particulars of the Business', requiring disclosure of the amount of investments made by the assessee. This marks an additional reporting requirement for taxpayers opting for the presumptive taxation scheme, where otherwise detailed financial disclosures are minimal," experts at Taxmann said in an analysis of over 20 changes in ITR forms for AY 2026-27.

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About The Author

rajeev kumar
Rajeev Kumar is a Deputy Editor at Upstox, and covers personal finance stories. In over 11 years as a journalist, he has written over 2,000 articles on topics like income tax, mutual funds, credit cards, insurance, investing, savings, and pension. He has previously worked with organisations like 1% Club, The Financial Express, Zee Business and Hindustan Times.

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