Filing Income Tax Return (ITR) is a crucial annual obligation for Indian taxpayers. However, choosing the correct ITR form can be confusing given the various options available. The Income Tax Department has designed different ITR forms to cater to different types of taxpayers and income sources. This comprehensive guide will help you understand all ITR forms and select the right one for your tax filing needs in Assessment Year 2025-26.
What are ITR Forms?
ITR forms are standardized formats prescribed by the Income Tax Department for filing income tax returns in India. The department has notified 7 different forms, i.e., ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 & ITR-7, till date. Each form is designed for specific categories of taxpayers based on their residential status, nature of income, and total income amount.
The selection of the appropriate ITR form depends on several factors including:
- Your residential status in India
- Sources and nature of your income
- Total income amount
- Whether you’re an individual, HUF, company, or other entity
Overview of All ITR Forms
The government of India has made some changes to income tax forms that people need to fill out while filing their income tax returns. The new forms (ITR-1, 2, 3, 4, 5, 6 and 7) will be used for the assessment year 2025-26.
Quick Reference Table
| ITR Form | Name | Applicable For | Income Limit | Key Features |
|---|---|---|---|---|
| ITR-1 | Sahaj | Resident Individuals | Up to ₹50 lakh | Salary, house property, other sources |
| ITR-2 | – | Individuals & HUFs | No limit | Capital gains, multiple properties |
| ITR-3 | – | Individuals & HUFs | No limit | Business/profession income |
| ITR-4 | Sugam | Individuals & HUFs | No limit | Presumptive business income |
| ITR-5 | – | Firms & LLPs | No limit | Partnership firms |
| ITR-6 | – | Companies | No limit | Corporate entities |
| ITR-7 | – | Trusts & Political Parties | No limit | Special entities |
Detailed Guide to Each ITR Form
ITR-1 (Sahaj) – The Simplest Form
ITR-1, also known as “Sahaj,” is the most commonly used form designed for salaried individuals with simple income sources.
Eligibility Criteria:
- Individuals residing in India with a total income of up to Rs 50 lakh are eligible.
- If you earn income from salary or pension, own a single house property, or have income from other sources (excluding earnings from betting, gambling, or lotteries), you are eligible to file ITR-1.
- This form is also suitable for residential individuals with agricultural income up to Rs 5,000.
Income Sources Covered:
| Income Type | Details |
|---|---|
| Salary/Pension | Employment income, including allowances |
| House Property | Income from one house property |
| Other Sources | Interest from bank/post office, family pension |
| Agricultural Income | Up to ₹5,000 only |
Who Cannot Use ITR-1:
- Non-resident Indians (NRIs)
- Individuals with business or professional income
- Those with capital gains
- Income from more than one house property
- Income exceeding ₹50 lakh
Documents Required:
- Form 16 from employer
- Interest certificates from banks
- House property details
- Investment proofs for deductions
ITR-2 – For Individuals with Diverse Income Sources
ITR-2 is designed for individuals and Hindu Undivided Families (HUFs) who have income from various sources but do not have income from profits and gains of business or profession.
Eligibility Criteria:
- Individuals and HUFs
- All residential statuses (resident, non-resident, RNOR)
- Any income level
- Multiple income sources except business/profession
Income Sources Covered:
| Income Type | Examples |
|---|---|
| Salary | Employment income |
| House Property | Multiple house properties |
| Capital Gains | Short-term and long-term capital gains |
| Other Sources | Interest, dividends, royalty |
| Foreign Income | For residents with foreign income |
Special Features:
- If your total income exceeds ₹50 lakh, it is mandatory to disclose the details of movable and immovable assets in Schedule AL along with liabilities incurred in relation to such assets.
- Suitable for NRIs and residents with foreign assets
- Comprehensive tax planning options
When to Use ITR-2:
- Income from multiple house properties
- Capital gains from share trading/property sale
- NRI status
- Income exceeding ₹50 lakh
- Foreign income or assets
ITR-3 – For Business and Professional Income
ITR-3 is designed for individuals and HUFs having income from business or profession, along with other sources.
Eligibility Criteria:
- Individuals and HUFs
- Income from business or profession
- Can have other income sources too
- All residential statuses
Income Sources Covered:
| Category | Details |
|---|---|
| Business Income | Trading, manufacturing, service business |
| Professional Income | Doctors, lawyers, consultants, freelancers |
| Other Income | Salary, house property, capital gains |
| Speculative Income | Share trading as business |
Key Features:
- Detailed business income computation
- Only those taxpayers who file ITR-3, ITR-4 or ITR-5 have to submit Form 10-IEA if they have business income.
- Provision for claiming business expenses
- Multiple schedules for different income types
Who Should Use ITR-3:
- Business owners
- Professionals (doctors, lawyers, CAs)
- Freelancers and consultants
- Partnership firm partners
- Those with speculative business income
ITR-4 (Sugam) – For Presumptive Business Income
ITR-4, also called “Sugam,” is designed for taxpayers who opt for presumptive taxation schemes.
Eligibility Criteria:
- Individuals and HUFs
- Business turnover up to ₹2 crore (Section 44AD)
- Professional gross receipts up to ₹50 lakh (Section 44ADA)
- One of the basic differences between ITR-1 and ITR-4 lies in the presumptive business scheme. This specific provision is applicable to ITR-4 but not ITR-1.
Presumptive Taxation Schemes:
| Scheme | Section | Applicable For | Presumptive Income Rate |
|---|---|---|---|
| 44AD | – | Small Business (≤ ₹2 cr turnover) | 8% of turnover (6% for digital receipts) |
| 44ADA | – | Professionals (≤ ₹50 lakh receipts) | 50% of gross receipts |
| 44AE | – | Transport Business (Goods carriages) | ₹7,500 per vehicle per month |
Benefits of ITR-4:
- Simplified business income calculation
- No need to maintain detailed books of accounts
- Reduced compliance burden
- Lower audit requirements
Income Sources Covered:
- Presumptive business income
- Salary/pension income
- Income from house property
- Other sources (interest, etc.)
ITR-5 – For Partnership Firms and LLPs
ITR-5 is specifically designed for partnership firms, Limited Liability Partnerships (LLPs), and Association of Persons (AOP).
Who Should File ITR-5:
| Entity Type | Description |
|---|---|
| Partnership Firms | Registered and unregistered firms |
| LLPs | Limited Liability Partnerships |
| AOP | Association of Persons |
| BOI | Body of Individuals |
| Artificial Juridical Person | Legal entities created by law |
Key Features:
- Partnership income computation
- Partner-wise profit sharing details
- Only those taxpayers who file ITR-3, ITR-4 or ITR-5 have to submit Form 10-IEA if they have business income.
- Special provisions for firm taxation
ITR-6 – For Companies
ITR-6 is mandatory for all companies incorporated in India, including private limited companies, public limited companies, and foreign companies.
Applicability:
- All domestic companies
- Foreign companies with Indian operations
- Government companies
- Cooperative societies (in certain cases)
Key Sections:
| Section | Purpose |
|---|---|
| Manufacturing/Trading | Business income details |
| Brought Forward Losses | Carry forward of losses |
| Tax Computation | Corporate tax calculation |
| Balance Sheet | Financial position |
ITR-7 – For Trusts and Special Entities
ITR-7 is designed for entities that have special tax status or exemptions.
Who Should File ITR-7:
| Entity | Examples |
|---|---|
| Trusts | Charitable trusts, religious trusts |
| Political Parties | Registered political organizations |
| Institutions | Educational, medical institutions |
| Funds | Mutual funds, pension funds |
| Universities | Government and private universities |
How to Choose the Right ITR Form
Decision Tree for ITR Selection
Step 1: Determine Your Status
- Are you an individual/HUF or an entity?
- What’s your residential status?
Step 2: Analyze Your Income Sources
- Do you have business/professional income?
- Are there capital gains?
- Multiple house properties?
Step 3: Check Income Limits
- Is your total income above ₹50 lakh?
- Do you qualify for presumptive taxation?
Common Scenarios and Applicable ITR Forms
| Scenario | Applicable ITR |
|---|---|
| Salaried employee, one house, total income < ₹50L | ITR-1 |
| Salaried employee with share trading gains | ITR-2 |
| Doctor with clinic income | ITR-3 |
| Small shopkeeper with turnover < ₹2 crore | ITR-4 |
| Partnership firm | ITR-5 |
| Private limited company | ITR-6 |
| Charitable trust | ITR-7 |
Important Dates and Deadlines for AY 2025-26
Filing Deadlines
| Taxpayer Category | Due Date | Late Filing Penalty |
|---|---|---|
| Individuals (ITR-1, ITR-4) | 15th September 2025 | ₹5,000 |
| Other Individuals | 31st July 2025 | ₹5,000 |
| Companies | 31st October 2025 | ₹10,000 |
| Audit Cases | 31st October 2025 | Varies |
Note: The due date of filing of ITRs for AY2025-26, which are due for filing by 31st July 2025 has been extended to 15th September 2025.
New Features in ITR Forms for AY 2025-26
Enhanced Disclosure Requirements
- Disability Deductions: From AY 2025-26 you must give additional information regarding deduction u/s 80 DD or Section 80U.
- Asset Disclosure: Enhanced requirements for high-income taxpayers
- Digital Integration: Improved auto-population from AIS (Annual Information Statement)
Form 10-IEA Requirement
As per the income tax laws, an individual having business income shall submit form 10-IEA before the due date of filing ITR.
Tips for Successful ITR Filing
Before You Start
- Gather Documents: Form 16, bank statements, investment proofs
- Download AIS: You would need to download AIS and keep copies of Form 16, house rent receipt
- Choose Tax Regime: Old vs. New tax regime
- Verify Bank Account: For refund processing
During Filing
- Double-check Information: Verify all entered data
- Claim Eligible Deductions: Don’t miss out on tax-saving opportunities
- Upload Supporting Documents: Where required
- Review Before Submission: Final verification
After Filing
- Download Acknowledgment: ITR-V or e-verification
- Verify Return: Complete e-verification process
- Keep Records: Maintain copies for future reference
- Track Refund Status: If applicable
Common Mistakes to Avoid
Form Selection Errors
- Using ITR-1 when having capital gains
- Filing ITR-3 instead of ITR-4 for eligible cases
- Wrong form for NRI status
Data Entry Mistakes
- Incorrect PAN or Aadhaar details
- Mismatching bank account information
- Wrong income figures
Compliance Issues
- Missing mandatory schedules
- Incomplete asset disclosure
- Late filing penalties
Digital Filing Options
Online Filing (Recommended)
- User-friendly interface
- Auto-calculations
- Instant acknowledgment
- Faster refund processing
Offline Utility
Common Offline Utility for filing Income-tax Returns ITR 1, ITR 2, ITR 3 and ITR 4 for the AY 2025-26.
Benefits:
- Work without internet
- Save drafts locally
- Upload when ready
- Suitable for complex returns
External Resources and Links
For the most updated information and official forms, visit:
Conclusion
Choosing the correct ITR form is crucial for accurate tax filing and compliance. Find out which Income Tax Return form applies to you for financial year FY 2024-25 (AY 2025-26). Understanding your income sources, residential status, and total income will help you select the appropriate form.
Remember that ITR-1 (Sahaj) is suitable for most salaried individuals with simple income sources, while ITR-2 covers those with capital gains and multiple income sources. Business owners should choose between ITR-3 and ITR-4 based on their eligibility for presumptive taxation schemes.
If you’re unsure about which form to use, consider consulting a tax professional or using online tax filing platforms that can guide you through the selection process. Also ensure to file your ITR within a specified date. If you fail to do so, you will have to pay interest under Section 234A at 1% per month.
Stay updated with the latest changes in tax laws and ITR forms to ensure smooth and compliant tax filing. The Income Tax Department regularly updates forms and procedures to simplify the filing process and improve taxpayer experience.
Disclaimer: Tax laws and ITR forms are subject to changes. Always refer to the latest notifications from the Income Tax Department and consult tax professionals for complex situations.
