ITR-4 Deadline for AY 2026-27 Set for 31 August 2026

Deadline for Sugam filers

The due date for filing ITR-4 (Sugam) for Assessment Year 2026-27, corresponding to Financial Year 2025-26, is 31 August 2026, according to the Income Tax Department’s current ITR-4 guidance cited in the available research.

The date is immediately relevant to eligible resident individuals, Hindu undivided families and firms other than limited liability partnerships that intend to use the simplified return form. Taxpayers and advisers should establish eligibility before selecting ITR-4, rather than treating it as a form available merely because the taxpayer has business or professional income.

The deadline also calls for an early review of the taxpayer’s status, income sources and chosen tax regime. Where the return does not meet the prescribed conditions for Sugam, the correct response is to select the applicable alternative return form—not to omit an income source or otherwise compress the disclosure into ITR-4.

Who can use ITR-4

ITR-4 is available to eligible resident individuals, HUFs and firms other than LLPs, subject to the income and source conditions prescribed for the form. These conditions are central to its use: falling within one of the stated taxpayer categories does not, by itself, establish eligibility.

The reference to resident individuals is important because the form is not described as a general return for every individual taxpayer. Similarly, while qualifying firms may use it, LLPs are expressly outside the stated class of eligible entities. A firm’s legal constitution should therefore be checked at the outset of the filing exercise.

For practitioners, the form-selection review should be documented before return preparation begins. The taxpayer’s residential status, constitution and every material head or source of income should be checked against the conditions applicable to ITR-4 for the assessment year. If any item is outside those conditions, the return form should be reconsidered before figures are entered or uploaded.

Why form selection matters

Sugam is intended for taxpayers who satisfy a defined set of conditions. It should not be selected solely because it appears simpler or because the taxpayer used it in an earlier year. Eligibility must be tested independently for AY 2026-27 on the basis of the taxpayer’s current facts.

This distinction matters where a taxpayer’s profile has changed during FY 2025-26. A change in residential status, legal constitution or income sources can affect the choice of return even if the scale or nature of the taxpayer’s regular activity appears broadly unchanged. The previous year’s form is a useful reference point, but not a substitute for the current-year eligibility review.

Tax professionals should also avoid beginning with the assumption that every small business or professional taxpayer belongs in ITR-4. The available research establishes only that the form is open to qualifying resident individuals, HUFs and non-LLP firms under the prescribed income and source conditions. It does not support extending the form to taxpayers outside those categories or conditions.

Rebate figures require regime-wise attention

The Department’s ITR-4 guidance cited in the research states the Section 87A rebate figures as ₹12,500 under the old tax regime and ₹60,000 under the new tax regime. These are regime-specific figures and should not be interchanged while reviewing the return computation.

The taxpayer’s regime position must consequently be clear before the final tax calculation is accepted. Practitioners should ensure that the rebate reflected in the computation corresponds to the regime actually applied in the return and that the underlying eligibility conditions are satisfied. The stated rebate amounts should not be read as an automatic reduction available in every ITR-4 filing.

This review is especially relevant when information has been carried forward from working papers, tax software or a prior-year return. A mechanically retained regime selection or rebate assumption can distort the final computation. The return should instead be checked as an AY 2026-27 filing based on the taxpayer’s present facts and the applicable regime.

A practical pre-filing review

Before the 31 August deadline, preparers should first confirm that the return relates to AY 2026-27 and income for FY 2025-26. An incorrect assessment-year selection can undermine an otherwise complete filing exercise.

The next step is to verify the taxpayer category. For an individual, the residential-status condition relevant to ITR-4 should be checked. For a firm, the preparer should confirm that it is not an LLP. For an HUF, the income and source conditions applicable to Sugam still need to be examined; entity type alone is not enough.

A complete income-source review should then be performed. This is the stage at which the adviser determines whether every source reported by the taxpayer fits within the prescribed scope of ITR-4. The exercise should cover the entire year rather than only the taxpayer’s principal business or professional activity.

The tax regime and related computation should be reviewed after form eligibility has been established. Where a Section 87A rebate is reflected, the amount and eligibility should be tested against the selected regime. The figures cited in the current guidance are ₹12,500 for the old regime and ₹60,000 for the new regime.

Finally, the completed return should be compared with the taxpayer’s supporting records and the filing should be planned sufficiently before 31 August 2026 to allow discrepancies to be resolved. The deadline should be treated as the last date, not as the date on which the eligibility review and information collection begin.

What practitioners should communicate to clients

Client communication should separate two questions that are often conflated: when the return is due and whether ITR-4 is the correct form. For AY 2026-27, the stated ITR-4 deadline is 31 August 2026. That date does not make every taxpayer eligible to use Sugam.

Advisers should therefore request confirmation of the taxpayer’s status, constitution and complete income profile before finalising the form. Clients should also be told that continued use of ITR-4 cannot be assumed simply because the form was used previously. The relevant conditions must be satisfied for the current assessment year.

Where eligibility is uncertain, the issue should be resolved before submission. Filing in a simplified form without first accounting for all relevant facts may create avoidable corrective work. A disciplined form-selection process is therefore as important as meeting the calendar deadline.

Key takeaway

Eligible resident individuals, HUFs and firms other than LLPs using ITR-4 for AY 2026-27 should work towards the 31 August 2026 deadline, but only after confirming that their status and income sources satisfy the prescribed Sugam conditions and that any Section 87A rebate is consistent with the tax regime applied.