ITR filing 2025: From ITR-1 to ITR-7 - how to choose the right income tax return form

ITR filing 2025: The ITR-6 return form is applicable to companies except those that are required to file returns using ITR-7.

Income Tax Return Filing 2025: The Central Board of Direct Taxes (CBDT) has notified all Income Tax Return (ITR) forms — from ITR-1 to ITR-7 — for the financial year 2024-25 (tax assessment year 2025-26). Several changes have been made in these ITR forms, which individuals will be using to file their taxes in the upcoming tax filing season. From higher thresholds for asset disclosure to updated capital gains reporting, changes have been brought about to provide relief to taxpayers.

Also Read - Income tax return filing: ITR forms for AY 2025–26 notified — check key changes
For those filing income tax, one of the most important tasks is selecting the applicable Income Tax Return form. Here's a quick guide on relevant ITR forms for individual tax-payers —

ITR-1 (Sahaj): Eligible for basic sources of income
Taxpayers can use the ITR-1 (Sahaj) form to report long-term capital gains (LTCG) of up to Rs 1.25 lakh under Section 112A from listed equity shares or equity mutual funds.

The ITR-1 form will apply to individuals who are Indian residents with up to Rs 50 lakh income only from salary, one house property, and other sources like savings interest and fixed deposits (FDs).

ITR-1 (Sahaj): Who is eligible?
i) Resident individual of India with total income up to Rs 50 lakh
ii) Sources of income include salary/pension, Income from one house property (excluding cases where loss is brought forward), income from other sources (like interest from savings accounts, fixed deposits, etc.), agricultural income (up to Rs 5,000 only)

ITR-1 (Sahaj): Who is ineligible?
i) Any individuals who is a director in a company
ii) Individuals invested in unlisted equity shares during previous year
iii) Those having income from business or profession
iv) Residents having foreign assets or foreign income
v) Capital gains more than permitted threshold: LTCG under Section 112A more than Rs 1.25 lakh or having carried-forward or brought forward losses

Kind attention, taxpayers!ITR-1 (SAHAJ) for AY 2025-26 has been notified via Notification No. 40/2025 dated 29.04.2025, effective from 1st April 2025.Wondering if youre eligible to file Sahaj?Here is our explainer series on various aspects of ITR-1. pic.twitter.com/s7fBIgjYVj
Income Tax India (@IncomeTaxIndia) May 5, 2025

The ITR-2 form is applicable to those residents with capital gains, more than one house property, or foreign assets. Also, buyback gains after October 1, 2024, must now be disclosed under 'Income from Other Sources' and as 'Nil' consideration in the capital gains section of the ITR-2 form.

ITR-2 changes:
i) Schedule-capital gain split for gains before/after 23.07.2024 (post changes in Finance Act, 2024)
ii) Capital loss on share buyback allowed if corresponding dividend income is shown as income from other sources (post 1 October, 2024)
iii) Asset and liability reporting limit raised to Rs 1 crore of total income
iv) Enhanced reporting for deductions [80C, 10(13A)], etc.)
v) TDS section code to be reported in Schedule-TDS
ITR-3: For Business Income
ITR-3 applies to Hindu Undivided Families (HUFs) and individuals with business or professional income. The disclosure of tax regime selection (old or new) along with Form 10-IE or 10-IEA is necessary for those using ITR-3 to file their income tax return.

The ITR-3 form has been simplified with a schedule for split capital gains that permits calculation for tax purposes before and after July 23, 2024. ITR-3 also allows reporting of capital loss on share buyback if corresponding dividend income is shown as income from other sources.
ITR-4 (Sugam): For presumptive taxation
While no major changes have been brought about in the ITR-4 Sugam form, CBDT has updated the reporting of long-term capital gains (LTCG) under Section 112A for up to Rs 1.25 lakh. ITR-4 Sugam applies to HUFs, individuals, and firms (excluding Limited Liability Partnerships - LLPs) that operate under presumptive taxation schemes.

ITR-V: Income Tax Return verification form
ITR-V form serves as the verification form for income taxpayers who do not e-verify their ITRs.
ITR-6: For Companies

The ITR-6 return form is applicable to companies except those that are required to file returns using ITR-7.

Major updates to ITR-6 include a split schedule for capital gains transactions before or after July 23, 2024, and provisions for buyback-related capital losses if the corresponding dividend income is declared after October 1, 2024.ITR-7: For Exempt Entities
ITR-7 form is applicable to charitable or religious trusts, political parties, research institutions, and other entities that are exempt under Sections 139(4A), 139(4B), 139(4C), or 139(4D). The changes to ITR-7 form include capital gains split before and after July 23, 2024, and buyback-related loss disclosures.