For 2024–25 (2025–26 assessment year), the Income Tax Department has released seven different income tax return (ITR) forms—IITR-1 to ITR-7—each tailored to a taxpayer type. Choosing the correct one is important for trouble-free return filing. The incorrect form can lead to rejection, penalty, or notice from the tax department. Let's dissect which ITR form you should file based on your income source and status.
ITR-1 (Sahaj): For salaried individuals with simple income
ITR-1 may be filled by resident individuals (not HUF) whose total income is ₹50 lakh or less from salary, one house property, family pension, and income from other sources like interest. They must not file this form if they are a director in a company, have foreign assets, or have capital gains income. NRIs and those having agricultural income above ₹5,000 also cannot file this form.
ITR-2: For non-business income-receiving individuals and HUFs
If your income includes capital gains (property, shares, mutual funds), or you are having foreign assets or foreign income, you will be required to file ITR-2. It is designed for individuals and Hindu Undivided Families who do not have income from profession or business. It's suitable for salaried taxpayers who have income from more than one house properties or from lottery winnings.
ITR-3: For individuals and HUFs with income from profession or business
You are required to file ITR-3 if you have income from a proprietary profession or business. It is also utilized when you are a partner in a company (but not when you are receiving a share of profit, which is exempted). It covers incomes from profession, business, salary, house property, capital gains, and so on.
ITR-4 (Sugam): For assumed income under sections 44AD, 44ADA, 44A
ITR-4 is for resident individuals, HUF, and firms (except LLP) with total income not exceeding ₹50 lakh and opting to have presumptive income scheme. This return cannot be submitted by an individual with more than one house property, foreign asset, or who is a director in a firm. Once you exit the presumptive scheme in any year, you cannot return to it within five years.
ITR-5: For firms, LLPs, AOPs, BOIs
ITR-5 is for entities like firm of partnerships, LLPs (Limited Liability Partnerships), Association of Persons (AOPs), and Bodies of Individuals (BOIs). ITR-5 is not for individuals, HUFs, firms, or trusts. The form has income from business/profession, capital gains, house property, and other sources.
ITR-6: For firms other than those claiming exemption under Section 11
ITR-6 must be utilized by such companies who don't claim exemption under Section 11 (income from property held for charitable or religious purposes). Companies claiming such exemption must utilize ITR-7. This must be submitted online using a digital signature.
ITR-7: For trusts, political parties, institutions claiming exemptions
This form is filled by individuals, including companies, that are required to provide returns under Sections 139(4A) to 139(4F)—trusts, political parties, research institutions, and colleges or universities claiming exemption. It deals with income from voluntary contributions, property held in trust, and other exempt incomes.
Filing your income tax return through the correct form avoids trouble and reduces the likelihood of errors or audit. Initially, verify your sources of income, residence status, and total income for the year. If unsure, consult a tax professional or utilize the income tax portal's tool to guide you to the right ITR form for FY 2024–25.
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