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.
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 2026-27 | AY 2025-26 |
|---|---|
| Partners / members' own capital | Partners / members' own capital |
| Secured loans | Secured loans |
| Unsecured loans | Unsecured loans |
| Advances | Advances |
| Sundry creditors | Sundry creditors |
| Other liabilities | Other liabilities |
| Total capital and liabilities | Total capital and liabilities |
| Fixed assets | Fixed assets |
| Investments | - |
| Inventories | Inventories |
| Sundry debtors | Sundry debtors |
| Balance with banks | Balance with banks |
| Cash-in-hand | Cash-in-hand |
| Loans and advances | Loans and advances |
| Other assets | Other assets |
| Total assets | Total 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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