ITR-4 AY 2026-27: Two House Properties and Presumptive Business
ITR-4 is simplified, but eligibility still depends on status, income level, source of business income and several exclusions.
The two-house-property change
The Income Tax Department's AY 2026-27 ITR-4 guidance says eligible taxpayers can report income from up to two house properties. This is a meaningful change for taxpayers who previously expected a one-property limitation.
Core eligibility
- Resident Individual, HUF or resident firm other than LLP, subject to the prescribed conditions.
- Total income not exceeding ₹50 lakh.
- Business/profession income computed presumptively under Section 44AD, 44ADA or 44AE.
- Other permitted income sources must also fit the ITR-4 conditions.
Important exclusions
- RNOR or non-resident status.
- Total income above ₹50 lakh.
- Short-term capital gains.
- Section 112A LTCG above ₹1.25 lakh.
- More than two house properties.
- Specified cases involving company directorship, unlisted equity, certain special-rate income and other disqualifiers.
Choose the right form
Use the ITR Form Selector for a quick first-pass. If you have business/profession income but do not fit ITR-4, ITR-3 may be relevant; ITR-2 is for individuals/HUFs without business/profession income who are outside ITR-1.
Primary sources
FAQ
Can ITR-4 include two house properties?
Yes, for AY 2026-27, subject to all other conditions.
Can a firm use ITR-4?
A resident firm other than an LLP can be eligible where the prescribed presumptive conditions are met.
Can ITR-4 include STCG?
No. Short-term capital gains are an exclusion.