Which ITR for a Sole Proprietor in AY 2026-27?
A sole proprietor reports business income in the proprietor’s individual income-tax return. For AY 2026-27, the choice is generally ITR-3 or, where all ITR-4 conditions are met, ITR-4.
Quick Answer
In practical terms, A sole proprietor reports business income in the proprietor’s individual income-tax return. For AY 2026-27, the choice is generally ITR-3 or, where all ITR-4 conditions are met, ITR-4.
When ITR-4 may apply
ITR-4 is available to eligible resident individuals, HUFs and resident firms other than LLPs with total income up to ₹50 lakh where business or professional income is computed on a presumptive basis under section 44AD, 44ADA or 44AE, subject to the form’s other conditions.
When ITR-3 is generally required
If the proprietor has business or professional income but does not qualify for ITR-4, the individual generally files ITR-3. This can happen because of the nature of income, residential status, total income, or another exclusion from ITR-4.
Related EZTax Questions
- Which ITR Form Should I File for AY 2026-27?
- Who Can File ITR-3 for AY 2026-27?
- Who Can File ITR-4 (Sugam) for AY 2026-27?
- Which ITR Should a Freelancer File?
