August 31 ITR filing deadline: ITR-3 or ITR-4? Which form you should choose while filing your income tax return

If you have income from a business or profession, choosing the correct Income Tax Return (ITR) form is important before filing your return for the Assessment Year (AY) 2026-27. For taxpayers with business or professional income and whose accounts are not required to be audited, the deadline to file an ITR through Forms 3 and 4 is August 31, 2026.

The two forms are meant for different types of taxpayers and income situations.

ITR-4, also known as Sugam, is mainly meant for taxpayers opting for the presumptive taxation scheme.


ITR-3, on the other hand, is used by individuals and Hindu Undivided Families (HUFs) with business or professional income who do not qualify to file ITR-4.

The Income Tax Department has written in a social media message on X (formerly Twitter): “Do you have business or professional income? If yes, and your return for AY 2026–27 falls under the non-audit category, remember to file your applicable ITR (ITR-3, ITR-4, ITR-5 or ITR-7) by August 31, 2026.

Don’t wait for the last minute. File your non-audit ITRs (ITR-3, 4, 5, and 7) before 31st August 2026.”

Confirm your eligibility for ITR-4 (presumptive business income up to Rs 50 lakh) versus ITR-3 (full books of accounts, F&O trading, or income over Rs 50 lakh)

Who needs to file ITR-3?

It is filed by individuals and HUFs having income from profits or gains from business or profession who are not eligible to file ITR-1, ITR-2, or ITR-4 (such as when maintaining detailed books of accounts, experiencing losses, or having actual expenses exceeding 50% under non-presumptive setups).

Who needs to file ITR-4?

ITR-4 (Sugam): ITR-4 (Sugam) may be filed by a resident individual, HUF (Hindu Undivided Family), or a firm, other than Limited Liability Partnership (LLP), having a total taxable income of up to Rs 50 lakh and income from a business, or profession computed on a presumptive basis under Sections 44AD, 44ADA, or 44AE of the Income-tax Act, 1961.

ITR-4 can be filed by a resident individual / HUF / firm (other than LLP) who has:

Income not exceeding Rs 50 lakh during a financial year

Income from business and profession which is computed on a presumptive basis underSections 44AD, 44ADA or 44AE

Long-term capital gain u/s 112A not exceeding Rs 1.25 lakhs.

Income from salary/pension, two house property, agricultural income (up to Rs 5,000/-)

Other sources which include (excluding winning from lottery and income from racehorses):

Interest from savings account

Interest from deposit (bank / post office / cooperative society)

Interest from income tax refund

Family pension

Any other interest income (e.g., interest income from unsecured loan)

What are the key changes in ITR-4 form for AY 2026-27?

Below are the key changes in ITR-4 for AY 2026-27:

Two house properties: Taxpayers can now report income from up to two house properties in ITR 4, rather than just one house property.

Unrealised rent field: A new, specific field for ‘rent which cannot be realised’ has been added, aiding taxpayers with rented properties.

Foreign asset reporting: Requirements for reporting foreign retirement benefits have been removed.