New Delhi, Aug. 26 -- Freelancers and professionals filing income-tax returns for FY 2025-26 need to be careful about choosing the correct ITR form, opting for presumptive taxation and reconciling their income and tax deducted at source (TDS) records before the August 31 deadline.

The biggest mistake is assuming that ITR-4 is simply a simpler version of ITR-3 and can be used by anyone earning freelance or professional income. CA Parag Jain, Tax Head at 1 Finance, said taxpayers should treat ITR-4 eligibility as a set of conditions rather than a matter of preference.

ITR-4 is not available to every freelancer or professional. According to Jain, taxpayers cannot use ITR-4 if they have capital gains, certain foreign assets or foreign incom...