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Last updated on: July 29, 2025
The type of ITR (Income Tax Return) form you should file depends on your income source, amount, and taxpayer category (individual, HUF, company, etc.). ITR-1 (Sahaj) is for salaried individuals with total income up to ₹50 lakh, one house property, and no business income. ITR-2 is for individuals and HUFs with income above ₹50 lakh or from more than one property, capital gains, or foreign assets. ITR-3 is meant for individuals/HUFs with income from business/profession. ITR-4 (Sugam) caters to individuals/HUFs/firms (other than LLP) opting for presumptive taxation. Companies file ITR-6, while trusts and institutions use ITR-7. Choosing the correct ITR form is crucial to avoid processing issues or notices from the Income Tax Department; always verify your specific eligibility before filing.
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Read BioWhen the Income Tax season arrives, taxpayers across India start wondering – Which ITR should I file? With several types of ITR forms available, choosing the right one ensures a smooth filing process and compliance with the Income Tax Department. This guide covers all types of ITR forms, their uses, eligibility, and answers your common questions, based on the latest rules relevant for the assessment year 2025-26.
The Income Tax Return (ITR) forms are official documents a taxpayer uses to declare their income, assets, tax paid, and claims to the Indian Government. Each form caters to a specific group based on income source, amount, and category of taxpayer – such as individuals, companies, or trusts. Filing the correct ITR helps you:
Choosing the correct ITR form depends on factors such as your income source, total annual income, category (Resident, NRI, Firm, or Company), and type of assets held. Here’s a practical approach to find your right fit:
Your primary and additional income sources directly affect the choice of ITR form.
Status matters. ITR-1 and ITR-2 are for individual taxpayers and HUFs, while companies, LLPs, and firms have separate forms.
Foreign assets require fuller disclosures and using detailed forms (e.g., ITR-2 or ITR-3).
Did you know? If you file the wrong ITR form, your return can be declared defective and you might have to re-file, risking delayed refunds or possible scrutiny.
Let’s explore each form for 2025 based on revised income tax rules.
Below is a table summarising all types of ITR forms for AY 2025-26, their applicability, and who should use which form.
| ITR Form | Applicable To | Income Sources | Key Highlights |
|---|---|---|---|
| ITR 1 (Sahaj) | Resident Individuals (not HUF) | Salary, pension, one house property, interest income | Income up to 50 lakhs, not for directors or those holding unlisted equity shares |
| ITR 2 | Individuals/HUFs | Salary, capital gains, foreign assets, more than one house | No business/professional income |
| ITR 3 | Individuals/HUFs | Business/professional income | Partners in firm, any income sources (except company) |
| ITR 4 (Sugam) | Individuals/HUFs/Firms (except LLP) | Presumptive business or professional income | Income up to 50 lakhs (profession) or 2 crore (business) |
| ITR 5 | Firms, LLPs, AOPs, BOIs | Profits and gains (business or otherwise) | Not for individuals, HUF, or companies |
| ITR 6 | Companies (except exempted) | Any income | Online filing mandatory |
| ITR 7 | Trusts, Political parties, Institutions | Income from property held under trust, religious institutions | Specific exemptions claimed |
ITR 1 is for resident individuals with total annual income up to ₹50 lakh and income sources only from:
Example: Ramesh, a school teacher, earning ₹30 lakh salary, interest from bank deposits, and renting out his only house, files ITR 1.
Key Features:
Pros:
Cons:
Expert insight: “Many salaried individuals mistakenly file ITR 1 without checking the specifics of their other incomes, like taxable gifts or capital gains. Always review the eligibility matrix before proceeding.”
Can I claim HRA and file ITR 1?
Yes, HRA components in your salary are covered in ITR 1 if other conditions are met.
ITR 2 is for individuals and HUFs who have income from:
Example: Shalini, an NRI who earned from salary in Dubai and had capital gains from mutual funds in India, files ITR 2.
Key Features:
Pros:
Cons:
Did you know? In Budget 2025, more detailed disclosures are required for taxpayers holding foreign digital assets.
Can an NRI file ITR 2?
Yes, if they have income from capital gains, more than one property, or foreign assets.
ITR 3 is mandatory for individuals or HUFs having income from:
Includes all incomes eligible under ITR 2, plus business incomes.
Example: Mehul runs a small design consultancy and a partnership in another firm. He files ITR 3.
Key Features:
Pros:
Cons:
Expert Insight: “Small businesses frequently miss out on deductions due to improper ITR form selection. Online tax filing marketplaces can compare services to help you make the right choice.”
Is ITR 3 mandatory for partners?
Yes, if you are a partner in a firm, you must file ITR 3.
ITR 4 is for:
Example: Priya, who runs a small Kirana shop, with turnover under ₹1 crore, files ITR 4 using presumptive income.
Key Features:
Pros:
Cons:
Did you know? As per 2025 rules, MSMEs can claim presumptive taxation even if payments are received digitally up to ₹3 crore turnover.
Is audit required for presumptive taxation in ITR 4? Not necessary if within prescribed business turnover limits.
For business entities other than individuals or HUF, these ITRs are relevant.
Key Features:
Pros:
Cons:
Expert Insight: “For LLPs and companies, using professional tax consultants or comparing online filing platforms ensures you select the right return, minimising errors and maximising allowable deductions.”
Can LLPs file ITR 4? No, LLPs must file ITR 5.
For hassle free comparison of tax filing services or expert assistance, you can use reputable online marketplaces that list products from several companies, letting you compare prices, features, reviews, and care options side by side.
Did you know? Over 60 percent of urban Indian taxpayers use online platforms to file taxes for the added convenience and reliability.
Comparison Table: Eligibility Snapshot (Key Numbers)
| Forms | Salary | Business/Professional | House Property | Capital Gains | Foreign Assets | Max Income Threshold |
|---|---|---|---|---|---|---|
| ITR 1 | Yes | No | 1 | No | No | ₹50 lakh |
| ITR 2 | Yes | No | Any | Yes | Yes | No limit |
| ITR 3 | Yes | Yes | Any | Yes | Yes | No limit |
| ITR 4 | Yes | Presumptive Only | 1 | No | No | ₹50 lakh/₹2 crore |
| ITR 5/6/7 | Firms, Companies, Trusts as specified above |
Can I change ITR form after filing?
If you have filed the wrong form before due date, you can file a revised return using correct ITR. After due date, this is not allowed unless by rectification notice.
Advantages:
Challenges:
Expert Insight: “Correct ITR filing is like picking the right insurance policy – comparing products and consulting experts increases your chances of peace and savings.”
Having helped over 300 Indians last year with tax filing, the most common confusion I saw was between ITR 1 and ITR 2 among salaried people with stock investments. For those with shares or mutual fund capital gains, always opt for ITR 2 instead of ITR 1 to avoid rejection or scrutiny.
Using marketplaces, I compared several providers. Automated tools in these platforms matched the ITR form to my details and even highlighted missed incomes, so my return was accepted without any queries. For my relative with foreign assets, expert consultation avoided notices for incorrect disclosures.
Q. What are the types of ITR forms for salaried employees?
A. Mostly ITR 1 and ITR 2, depending on whether you have capital gains or only salary income.
Q. Can I file ITR myself or do I need an expert?
A. For simple cases (ITR 1, 4) yes. For capital gains, business, foreign assets, an expert or tax online services is advised.
Q. Is ITR 1 applicable for three house properties?
A. No. ITR 1 is limited to income from only one house property. Use ITR 2 instead.
Q. What happens if I select the wrong ITR form?
A. Your return may be marked as defective by the Income Tax Department and you will need to correct it. Filing errors can delay refunds and create compliance hassles.
Q. Are there any new ITR forms in 2025?
A. No major new ITR forms released for AY 2025-26. Only updates in disclosure requirements, especially about foreign and digital assets.
Q. Can I file ITR from my mobile in 2025?
A. Yes, thanks to improved official websites and tax aggregator apps, mobile e-filing of ITR is now easy and widely used.
For best results and support, compare and choose a trusted tax filing platform that matches your requirement instantly.
Sources:
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Written by Prem Anand, a content writer with over 10+ years of experience in the Banking, Financial Services, and Insurance sectors.
Prem Anand is a seasoned content writer with over 10+ years of experience in the Banking, Financial Services, and Insurance sectors. He has a strong command of industry-specific language and compliance regulations. He specializes in writing insightful blog posts, detailed articles, and content that educates and engages the Indian audience.
The content is prepared by thoroughly researching multiple trustworthy sources such as official websites, financial portals, customer reviews, policy documents and IRDAI guidelines. The goal is to bring accurate and reader-friendly insights.
This content is created to help readers make informed decisions. It aims to simplify complex insurance and finance topics so that you can understand your options clearly and take the right steps with confidence. Every article is written keeping transparency, clarity, and trust in mind.
Based on Google's Helpful Content System, this article emphasizes user value, transparency, and accuracy. It incorporates principles of E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness).
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