The Income-Tax Department has notified all I-T return forms for the financial year 2025-26 i.e. the assessment year 2026-27. Further, the department has enabled Excel Utility for ITR-1 (Sahaj), ITR-2 and ITR-4 (Sugam) forms on its e-filing portal for FY26 / AY27.
For the current tax year, the deadline for individual taxpayers filing ITR is 31 July 2026. Further, for those using ITR forms 3 and 4, the deadline is 31 August 2026. Taxpayers who miss the July deadline can still file a delayed return by 31 December.
Today we look at the rules when it comes to choosing or changing you tax regime (old vs new tax regime), when taxpayers are filing business income using the ITR-4 Sugam form. Here are the top FAQs answered:
ITR-4: Rules to choose, change between old vs new tax regimes
Can an individual with business income opt for old tax regime while filing ITR-4? Yes, you can opt for old tax regime if you have business income. To do so, you must first also file Form 10 IEA before the due date of filing the ITR u/s 139(1) of the Income Tax Act, 1961.
Can an individual with a business income switch between new tax regime and old tax regime every year? Individuals having business income are not eligible to choose between the new and old tax regimes every year. Once they have opted for the old tax regime, they only have a one-time option of switching back to the new tax regime in their lifetime. Once they switch back, they cannot opt for the old tax regime again. Essentially, people with business income must file Form 10-IEA twice, once to use the old tax regime and the second to switch back to the new regime.
What is the due date of filing Form 10-IEA for opting / withdrawing from the old tax regime? As per income tax laws, an individual having business income shall submit Form 10-IEA before the due date of filing ITR u/s 139 (1) of Income Tax Act,1961.
Are all deductions available to claim while filing ITR-4 return? Yes, all deductions will be available to claim in return once taxpayer changes the option of ‘default new tax regime’ to ‘old tax regime’ and files Form 10-IEA within the due date and furnish Date of filing of Form 10IEA and Acknowledgement number in the return under Filing section of Part A General-Personal Information.
ITR-4: Who is eligible and not eligible for AY 2026-27?
ITR-4 can be filed by a Resident Individual / HUF / Firm (other than LLP) who has:
- Income from salary / pension, two house property, agricultural income (up to ₹5,000),
- Other sources which include (excluding winning from lottery and income from racehorses) such as — interest from savings account, bank / post office / cooperative society deposits. income-tax refund, and family pension and any other interest income (e.g., from an unsecured loan).
ITR-4 cannot be filed by an individual / HUF / Firm (Other than LLP) who:
- Long-term capital gain u/s 112A exceeding ₹1.25 lakh
- Has agricultural income in excess of ₹5,000
- Is a Director in a Company
- Has income from more than Two House Property;
- Has income of the following nature: winnings from lottery, activity of owning and maintaining racehorses, income taxable at special rates u/s115BBDA or Section 115BBE.
- Has held any unlisted equity shares at any time during the previous year
- Has deferred income tax on ESOP received from employer being an eligible start-up and
- Is not covered under the eligibility conditions for ITR-4.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.