Archive · 24 Aug 2026
Taxpayers Need Key Checks for ITR-3 and ITR-4 Filing
People with business or professional income may use ITR-3 or ITR-4 to report their taxes.
They should fill in the right sections and compare the numbers with their records.
ITR-3 usually requires more details about profits, assets, capital gains, investments and losses.
ITR-4 is simpler and includes areas such as salary, house property, other income and deductions.
Business turnover should match sales records, GST information, bank receipts and tax statements.
Presumptive-tax rules use set percentages for some businesses and professionals.
Taxpayers should keep documents such as bank records, invoices, tax certificates and property papers.
For AY 2026-27, the forms include several new or expanded reporting fields.
ITR-3 filers should review Profit and Loss, Balance Sheet, BP, CG, VDA, OS and loss-adjustment schedules.
ITR-4 covers salary or pension, house property, other sources, deductions and tax-payment details.
Business turnover should reconcile with sales records, GST returns, bank receipts, payment gateways, AIS and TDS certificates.
Presumptive taxpayers must apply the relevant 44AD, 44ADA or 44AE rules without deducting routine expenses again.
For AY 2026-27, ITR-4 allows income from two houses, while ITR-3 adds separate F&O and partnership-income reporting.
- Who
- Taxpayers with business or professional income filing ITR-3 or ITR-4, with guidance from Siddharth Maurya, Managing Director of Vibhavangal Anukulkara.
- What
- They are advised to complete key schedules and reconcile income, expenses, deductions, taxes and supporting records before filing.
- When
- By 31 August; AY 2026-27 covers income earned during FY 2025-26.
- Where
- In India’s ITR-3 and ITR-4 income-tax return forms.
- Why
- To ensure reported figures are accurate and supported by financial, tax, banking and other records.
- ITR-3 schedules
- Part A-Profit and Loss Account, Part A-Balance Sheet, BP, CG, VDA, OS, and where relevant CYLA, BFLA and CFL.
- ITR-4 sections
- Salary or Pension, House Property, Other Sources, Chapter VI-A Deductions and Payment Schedules.
- Turnover verification
- Reconcile sales with the sales register, GST returns, bank and payment-gateway receipts, AIS and TDS certificates.
- Section 44AD
- Generally treats 6% of eligible digital receipts and 8% of other eligible receipts, or actual income if higher, as income.
- Section 44ADA
- At least 50% of gross professional receipts is treated as income.
- AY 2026-27 changes
- ITR-4 permits reporting income from up to two houses and includes a field for uncollected rent; ITR-3 separately captures F&O turnover and trading income.