New Delhi, June 25 -- As the income tax return filing season progresses for AY2026-27, taxpayers with business or professional income need to carefully determine whether they should file ITR-3 or ITR-4.

ITR-3 is for individuals and HUFs reporting business or professional income, as well as income from salary, house property, capital gains or other sources. ITR-4, on the other hand, is for resident individuals, HUFs and firms (other than LLPs) opting for the presumptive taxation scheme under Sections 44AD, 44ADA or 44AE.

ITR-3 is meant for individuals and HUFs that earn income from business or profession and do not opt for the presumptive taxation scheme under the Income Tax Act.

Taxpayers who calculate business or professional income b...