✅ Who Can File ITR‑4?

Eligible taxpayers include Resident Individuals, HUFs, and firms (other than LLPs) with:

Business income under presumptive taxation (Section 44AD, 44ADA, 44AE)
Total income ≤ ₹50 lakh
One house property
Salary/pension, other sources (interest, dividends), agricultural income ≤ ₹5,000
Long-term capital gains (LTCG) under Sec 112A ≤ ₹1.25 lakh, without carry-forward of capital losses timesofindia.indiatimes.com+15incometax.gov.in+15bankbazaar.com+15 reddit.com

🚫 Ineligible Conditions

You cannot use ITR‑4 if you:

Are a company director
Hold unlisted shares, have foreign assets or income, or signing authority in foreign accounts
Have agri-income > ₹5,000, multiple house properties, or income from lotteries/racing
Have short-term capital gains or LTCG > ₹1.25 lakh
Are (R)NRI, or have deferred ESOP tax, carry-forward losses, or total income > ₹50 lakh indiafilings.com+15incometax.gov.in+15outlookmoney.com+15 outlookmoney.com

🔄 Why Trends Are Changing in AY 2025–26

1. LTCG Reporting

You can now report LTCG up to ₹1.25 lakh in ITR‑4 (under Sec 112A) — previously forced to use ITR‑2 indiafilings.com+3taxguru.in+3bankbazaar.com+3

2. Tax Regime Declaration

Must indicate tax regime choice—new regime default. First-time opt‑outs via Form 10‑IEA are mandatory before filing economictimes.indiatimes.com+9cleartax.in+9indiafilings.com+9

3. TDS Reporting & Deductions

TDS schedule now requires section-wise TDS codes
Detailed entry for deductions (80C–80U), bank accounts, HRA, home loans, etc. cleartax.in+2indiafilings.com+2bankbazaar.com+2

4. Aadhaar Update

Only 12‑digit Aadhaar accepted; enrollment IDs discontinued timesofindia.indiatimes.com+4cleartax.in+4bankbazaar.com+4

🧩 Form Structure

Part A–D: General info, income computation, deductions, tax liability, verification
Schedule BP: Presumptive business/professional income
Schedule LTCG: LTCG under Sec 112A
Schedule HP: One house property
Schedule S, OS: Salary and other income
Schedule IT/TDS/TCS: Advance tax, TDS detail with section codes
Chapter VI‑A: Deductions – now clause-level selection
Includes bank account listing, asset/liability details optional incometax.gov.in+4taxguru.in+4reddit.com+4

🧾 Filing Process & Tools

Excel utility for ITR‑4 now available online timesofindia.indiatimes.com+15outlookmoney.com+15economictimes.indiatimes.com+15
Validation rules updated for better error checking
Advised to file after mid‑June, once Form‑16 and SFT data are updated economictimes.indiatimes.com

💡 Quick Tips

ITR‑4 is simpler: fewer sections than ITR‑3 (just ~11 pages vs ~70) reddit.com+15reddit.com+15businesstoday.in+15
Use ITR‑3 if opting for audit or having complex incomes (unlisted shares, foreign income, carry-forward losses) tax2win.in+15reddit.com+15outlookmoney.com+15
Round off interest income to nearest rupee to avoid JSON upload errors reddit.com

📌 Summary

ITR‑4 (Sugam) is a simplified return for small business owners, professionals, and side-income earners opting for presumptive taxation and earning up to ₹50 lakh. For AY 2025–26, it now supports modest LTCG, demands greater transparency in regime choice, deductions, TDS codes, and usage of Aadhaar numbers. E-filing via updated Excel utility is enabled; file post mid-June for smooth processing.

Let me know if you’d like help drafting your ITR‑4 return, completing schedules, or choosing between tax regimes.

Relevant tax‑form news and utilities