As the tax season approaches, understanding the appropriate Income Tax Return (ITR) form to file is crucial for compliance and efficient processing. The Central Board of Direct Taxes (CBDT) has notified the ITR forms for Assessment Year (AY) 2025-26, corresponding to Financial Year (FY) 2024-25. This guide provides detailed insights into each ITR form, helping you determine the correct form based on your income sources and financial activities.
Overview of ITR Forms for AY 2025-26
| ITR Form | Applicable To | Key Income Sources | Notable Exclusions |
| ITR-1 (Sahaj) | Resident Individuals (excluding Not Ordinarily Resident) with total income up to ₹50 lakh | Salary/Pension, One House Property, Other Sources (Interest, Family Pension, Dividend), Agricultural Income up to ₹5,000 | Directors in a company, holders of unlisted equity shares, foreign assets/signing authority, income from outside India, tax deducted u/s 194N, deferred tax on ESOPs, brought forward/carry forward losses, total income exceeding ₹50 lakh |
| ITR-2 | Individuals and Hindu Undivided Families (HUFs) not having income from business or profession | All sources except business/profession income | N/A |
| ITR-3 | Individuals and HUFs having income from business or profession | Profits and Gains from Business or Profession | N/A |
| ITR-4 (Sugam) | Resident Individuals, HUFs, and Firms (other than LLPs) with total income up to ₹50 lakh | Business or Profession income computed under sections 44AD, 44ADA, 44AE; Salary/Pension; One House Property; Other Sources; Agricultural Income up to ₹5,000 | Directors in a company, holders of unlisted equity shares, foreign assets/signing authority, income from outside India, deferred tax on ESOPs, brought forward/carry forward losses, total income exceeding ₹50 lakh |
| ITR-5 | Firms, LLPs, AOPs, BOIs, AJPs, Estates of Deceased/Insovent, Business Trusts, Investment Funds | Income from business/profession, capital gains, other sources | Not applicable to individuals, HUFs, companies, and those filing under sections 139(4A), 139(4B), 139(4C), or 139(4D) |
| ITR-6 | Companies not claiming exemption under section 11 | Income from business/profession, capital gains, other sources | Companies claiming exemption under section 11 |
| ITR-7 | Persons including companies required to furnish returns under sections 139(4A), 139(4B), 139(4C), or 139(4D) | Income of charitable/religious trusts, political parties, scientific research institutions, universities, colleges, etc. | N/A |
Detailed Insights into Each ITR Form
ITR-1 (Sahaj)
- Eligibility: Resident individuals (excluding Not Ordinarily Resident) with total income up to ₹50 lakh.
- Income Sources: Salary/Pension, One House Property, Other Sources (Interest, Family Pension, Dividend), Agricultural Income up to ₹5,000.
- Exclusions: Individuals who are directors in a company, hold unlisted equity shares, have foreign assets/signing authority, earn income from outside India, have tax deducted u/s 194N, have deferred tax on ESOPs, have brought forward/carry forward losses, or have total income exceeding ₹50 lakh.
ITR-2
- Eligibility: Individuals and HUFs not having income from business or profession.
- Income Sources: All sources except business/profession income.
- Use Case: Suitable for individuals with income from salary/pension, multiple house properties, capital gains, and other sources.
ITR-3
- Eligibility: Individuals and HUFs having income from business or profession.
- Income Sources: Profits and Gains from Business or Profession.
- Use Case: Applicable to individuals engaged in business or profession, including freelancers and consultants.
ITR-4 (Sugam)
- Eligibility: Resident Individuals, HUFs, and Firms (other than LLPs) with total income up to ₹50 lakh.
- Income Sources: Business or Profession income computed under sections 44AD, 44ADA, 44AE; Salary/Pension; One House Property; Other Sources; Agricultural Income up to ₹5,000.
- Exclusions: Individuals who are directors in a company, hold unlisted equity shares, have foreign assets/signing authority, earn income from outside India, have deferred tax on ESOPs, have brought forward/carry forward losses, or have total income exceeding ₹50 lakh.
ITR-5
- Eligibility: Firms, LLPs, AOPs, BOIs, AJPs, Estates of Deceased/Insovent, Business Trusts, Investment Funds.
- Income Sources: Income from business/profession, capital gains, other sources.
- Exclusions: Not applicable to individuals, HUFs, companies, and those filing under sections 139(4A), 139(4B), 139(4C), or 139(4D).
ITR-6
- Eligibility: Companies not claiming exemption under section 11.
- Income Sources: Income from business/profession, capital gains, other sources.
- Exclusions: Companies claiming exemption under section 11.
ITR-7
- Eligibility: Persons including companies required to furnish returns under sections 139(4A), 139(4B), 139(4C), or 139(4D).
- Income Sources: Income of charitable/religious trusts, political parties, scientific research institutions, universities, colleges, etc.
Read More: ITR for AY 2025-26: ITR-1 and ITR-4 Now Include LTCG Disclosure under Section 112A
Amit Sharma is the Content Editor at JurisHour. He has been writing about the Indian legal market. He has coveredtax & company litigation stories from the Supreme Court, High Courts and Various Tribunals. Amit graduated from MLSU Law College with B.A.LL.B.and also holds an LL.M. from MLSU, Udaipur, Rajasthan. An Advocate in Taxation, and practised in Tribunals as well as Rajasthan High Court and pursued Masters in Constitutional Law. He started out small with little resources but a big plan to take tax legal education to the remotest locations across India and eventually to the world. His vision is to make tax related legal developments accessible to the masses.
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