Mandatory Investment Disclosure Introduced in New ITR-4 Form for Presumptive Taxpayers
New ITR-4 form introduces mandatory investment disclosure for presumptive taxpayers: Here's how to file step-by-step
Mint
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The Central Board of Direct Taxes (CBDT) has made investment disclosure compulsory in the revised ITR-4 form for presumptive taxpayers. This new requirement applies to resident individuals, Hindu Undivided Families, and firms with total income up to ₹50 lakh, effective for the 2026 Assessment Year.
- 01Investment disclosure is now mandatory for ITR-4 filers under the presumptive taxation scheme.
- 02The updated form applies to individuals, HUFs, and firms with total income up to ₹50 lakh.
- 03Taxpayers must report investments held until March 31, 2026.
- 04The new rule will take effect for the 2026 Assessment Year (FY 2025-26).
- 05Certain taxpayers, including directors and those with unlisted equity investments, are ineligible to file ITR-4.
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The Central Board of Direct Taxes (CBDT) has introduced a significant update to the ITR-4 (Sugam) form, making investment disclosure mandatory for taxpayers opting for the presumptive taxation scheme. This change applies to resident individuals, Hindu Undivided Families (HUFs), and firms other than Limited Liability Partnerships (LLPs) whose total income does not exceed ₹50 lakh (approximately $60,000 USD). Taxpayers must report their investments held until March 31, 2026, marking the first time such disclosure is required under this scheme. The new rule will be applicable for filing income tax returns in the 2026 Assessment Year (Financial Year 2025-26), differing from the previous year when such details were not needed. A step-by-step guide for filing the new ITR-4 is provided, detailing necessary documents and the filing process. Eligibility criteria for using ITR-4 include income from business or profession under specific sections and limitations on agricultural income and property ownership. Notably, individuals with certain investment profiles or income sources exceeding the threshold cannot file this form.
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This change will require taxpayers to maintain accurate records of their investments, potentially affecting their filing process and tax liabilities.
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