The Income Tax Department has specified different ITR forms for taxpayers based on their income sources, residential status, income level, and legal category (individual, firm, company, etc.).
What is ITR?
An Income Tax Return (ITR) is a form through which taxpayers report their income and taxes to the Income Tax Department. It must be filed every year within the prescribed due date. There are seven types of ITR forms (ITR-1 to ITR-7), and the correct form depends on the taxpayer’s income type, income amount, and category (individual, HUF, company, etc.).
Five Heads of Income under the Income Tax Act
The selection of the ITR form largely depends on the source of income. The Act classifies income under five heads:
- Salary – Income from salary, pension, etc.
- House Property – Rental income earned from property, whether residential or commercial.
- Profits and Gains from Business or Profession – Includes business income, professional fees, freelance earnings, as well as F&O and intraday trading income.
- Capital Gains – Profits from selling assets held as investments.
- Other Sources – Income not covered under the above categories.
Different Types of ITR Forms
The applicability of each ITR form is explained below.
ITR-1 (SAHAJ)
Who can file ITR-1?
A taxpayer is eligible to use ITR-1 if:
- They are a resident individual.
- Total income does not exceed ₹50 lakh.
- Income is earned from salary/pension, or
- From one house property (excluding cases with brought-forward losses), or
- From other sources (excluding lottery winnings and income from racehorses).
- Long-term capital gains income under Section 112A up to ₹1.25 lakh (with no brought-forward or carry-forward capital loss).
- Agricultural income up to ₹5,000.
Who Cannot Use ITR-1 Form?
The ITR-1 (Sahaj) form is the simplest income tax return form, but not everyone can use it. You cannot file ITR-1 if you have:
- Total income exceeding ₹50 lakh
- Agricultural income exceeding ₹5,000
- Taxable capital gains
- Income from business or profession
- Income from more than one house property
- Directorship in a company
- Investments in unlisted equity shares during the financial year
- Assets or financial interests outside India, or signing authority in a foreign account
- Residential status as Resident-Not-Ordinarily Resident (RNOR) or Non-Resident
- Any foreign income
- Tax deducted under Section 194N
- Deferred tax on ESOPs
- Brought forward losses or losses to be carried forward
Who Can Use ITR-2 Form?
You can file ITR-2 if any of the following apply:
- Income from Salary/Pension
- Income from House Property
- Income from Other Sources (including lottery winnings or horse race income)
- You are a company Director
- You hold unlisted equity shares during the financial year
- Residential status is RNOR or Non-Resident
- Income from Capital Gains
- Foreign income or ownership of assets outside India (including signing authority in a foreign account)
- Agricultural income above ₹5,000
- Tax deducted under Section 194N
- Deferred tax on ESOPs
- Any brought forward loss or loss to be carried forward
Additionally, ITR-2 can be used if the income of another person (like a spouse or child) is clubbed with your income, provided such income falls under the categories above. The total income can exceed ₹50 lakh in this case.
Who Cannot Use ITR-2?
Taxpayers having income from business or profession cannot file ITR-2.
ITR-3
Who Can Use ITR-3?
A taxpayer can file ITR-3 if the following apply:
- Individual or Hindu Undivided Family (HUF)
- Income from business or profession (both presumptive taxation and audit cases)
- Investments in unlisted equity shares during the financial year
- Income from house property, salary/pension, and other sources (can be included)
- Income earned as a partner in a firm
Who Cannot File ITR-3?
- Companies
- Business and charitable trusts
- Partnership firms, AOPs, BOIs, etc.
👉 In short, individuals or HUFs not eligible to file ITR-1, ITR-2, or ITR-4 should file ITR-3.
ITR-4 (Sugam)
ITR-4, also known as Sugam, is the Income Tax Return form for individuals, HUFs, and firms (other than LLPs) who have opted for the presumptive income scheme under Sections 44AD, 44ADA, or 44AE.
Who Can Use ITR-4?
- Resident individuals
- Total income not exceeding ₹50 lakh
- Business and professional income
- Income from salary or pension
- Income from one house property (excluding brought forward/carry-forward loss)
- Income from other sources (excluding lottery winnings and horse races)
- Long-term capital gains (u/s 112A) up to ₹1.25 lakh, provided there is no brought forward or carry forward capital loss
💡 Freelancers earning income from the above sources can also file ITR-4 if gross receipts do not exceed ₹50 lakh.
Note on Presumptive Taxation
Under Sections 44AD, 44AE, and 44ADA, taxpayers can declare income on a presumptive basis (a fixed percentage of gross receipts/turnover or based on ownership of commercial vehicles). However, if business turnover exceeds ₹2 crore, the taxpayer must file ITR-3 instead.
Who Cannot Use ITR-4 Form?
The ITR-4 form cannot be used in the following cases:
- Total income exceeds ₹50 lakh
- Income from more than one house property
- Ownership of foreign assets
- Holding signing authority in any foreign account
- Income from any source outside India
- Being a Director in a company
- Investments in unlisted equity shares during the financial year
- Being a Resident Not Ordinarily Resident (RNOR) or a Non-Resident
- Having foreign income or foreign assets
- If assessable for another person’s income, where tax is deducted in the other person’s hands
- If tax payment/deduction on ESOPs has been deferred
- If there are any brought forward losses or losses to be carried forward under any income head
ITR-5
Who Can File ITR-5?
The ITR-5 form is applicable to:
- Partnership firms
- Limited Liability Partnerships (LLPs)
- Association of Persons (AOPs)
- Body of Individuals (BOIs)
- Other similar entities
Who Cannot File ITR-5?
- Individuals
- HUFs (Hindu Undivided Families)
- Companies
- Taxpayers who are eligible to file ITR-7
ITR-6
Who Can File ITR-6?
The ITR-6 form is applicable to companies.
Who Cannot File ITR-6?
- Companies claiming exemption under Section 11, i.e., income from property held for charitable or religious purposes.
ITR-7
The ITR-7 form is meant for persons, including companies, who must file returns under Sections 139(4A), 139(4B), 139(4C), or 139(4D) of the Income Tax Act. It generally applies to charitable, religious, political, and specified institutions.
- Section 139(4A): For persons receiving income from property held under trust or legal obligation for charitable or religious purposes (wholly or partly).
- Section 139(4B): For political parties if total income (before applying Section 139A) exceeds the basic exemption limit.
- Section 139(4C): For entities such as:
- Scientific research associations
- News agencies
- Associations/institutions under Section 10(23A)
- Institutions under Section 10(23B)
- Educational institutions, funds, universities, or medical institutions covered under Section 10 exemptions
- Scientific research associations
- Section 139(4D): For universities, colleges, or institutions not required to file returns under other provisions.
- Section 139(4E): For business trusts not required to file returns under other sections.
- Section 139(4F): For investment funds under Section 115UB, not required to file under any other section.
Which ITR Form Should You File?
Selecting the right ITR form depends on your income type, income level, and taxpayer category. For instance, salaried individuals with income up to ₹50 lakh can use ITR-1, whereas those earning from business or profession must use ITR-3. Filing under the correct form ensures smooth compliance and prevents errors with the Income Tax Department.
Below is a simplified table highlighting who can file and who cannot file each ITR form:
| ITR Form | Who Can File | Who Cannot File |
| ITR-1 (Sahaj) | Resident individuals with income up to ₹50 lakh from:• Salary/pension• One house property• Other sources (interest, etc.)• Agricultural income ≤ ₹5,000• LTCG up to ₹1.25 lakh from equity/mutual funds | • NRIs• Residents with income > ₹50 lakh• More than one house property• Business/professional income• Foreign assets/income• Company directors• ESOP holders• Losses to be carried forward• Special tax rate income |
| ITR-2 | Individuals and HUFs (including NRIs/RNORs) with:• Salary/pension• Capital gains (any amount)• Multiple house properties• Agricultural income > ₹5,000• Foreign income/assets• Investments in unlisted shares• ESOPs• Company directorship | • Those having business or professional income |
| ITR-3 | Individuals/HUFs with:• Business or professional income (proprietorship)• Partner’s income from firms• F&O or intraday trading• Investments in unlisted sharesAlso includes income from salary, house property, and capital gains | • Taxpayers without business or professional income |
| ITR-4 (Sugam) | Resident individuals, HUFs, and firms (except LLPs) opting for presumptive taxation under Sections 44AD, 44ADA, or 44AE with:• Total income ≤ ₹50 lakh• Salary/pension• One house property• LTCG u/s 112A up to ₹1.25 lakh | • Directors in companies• Holders of unlisted equity shares• Turnover > ₹2 crore• Foreign income/assets• More than one property• Losses to be carried forward• Special tax rate income |
| ITR-5 | • Partnership firms• LLPs• AOPs• BOIs• Local authorities• Cooperative societies• Estates and business trusts (except those filing ITR-7) | • Individuals• HUFs• Companies |
| ITR-6 | • Companies (other than those claiming exemption under Section 11) | • Charitable/religious trusts and institutions covered under Section 11 |
| ITR-7 | • Trusts• Political parties• NGOs• Universities/colleges• Hospitals/medical institutions• Scientific research institutions• Other entities required under Sections 139(4A)–(4F) | • Individuals• HUFs• Firms• |
Other Forms Required for Filing ITR
When filing your Income Tax Return, a few supporting forms and documents are essential. These forms help validate income, deductions, and taxes already paid.
Form 16
Form 16 is one of the most important documents for salaried individuals during ITR filing. It is issued annually by the employer and consists of two parts:
- Part A – Provides details of Tax Deducted at Source (TDS) on salary.
- Part B – Shows a summary of salary, deductions claimed, and estimated tax liability.
Form 26AS
Form 26AS is a consolidated annual tax statement that contains:
- All TDS deducted and deposited against your PAN.
- Details of income on which TDS has been deducted.
- Information of Specified Financial Transactions (SFTs).
- Turnover details as per GST records.
Other Forms
- Form 10-IEA – To opt in or out of the new income tax regime.
- Form 10B – Required in specific cases such as charitable trusts or institutions.
Why Should You File ITR?
Filing your ITR is not just a legal responsibility but also comes with significant benefits. Non-filing can lead to penalties and loss of certain tax advantages. Key reasons to file ITR include:
- To claim a tax refund if excess tax has been deducted.
- If you have foreign income or assets during the financial year.
- Mandatory for visa or loan applications as proof of income.
- Required for companies and firms, regardless of profit or loss.
- To carry forward losses from business or capital gains – only possible if the return is filed before the due date.
Frequently Asked Questions (FAQs) on ITR Filing
1. Who is eligible to opt for the presumptive taxation scheme for filing ITR-4?
The presumptive taxation scheme is meant to ease compliance for small taxpayers with turnover up to ₹2 crore (₹3 crore in certain cases). Under this scheme, income is computed at a prescribed percentage of turnover, and detailed books of accounts are not required.
2. If I have incurred a loss during FY 2024-25, do I need to file an ITR?
If you are an individual and your income shows a loss, filing a return is not mandatory. However, it is advisable to file the return to carry forward such losses, which can be set off against future income, reducing tax liability in later years.
3. What is the difference between ITR-1 and ITR-2?
- ITR-1 is for resident individuals with income up to ₹50 lakh from salary, pension, one house property, or other sources (excluding lottery, racehorses).
- ITR-2 is for individuals/HUFs with income above ₹50 lakh, multiple properties, capital gains, or foreign income/assets.
4. What types of income cannot be reported under ITR-1?
Business income, speculative or F&O income, capital gains (other than LTCG under Section 112A up to ₹1.25 lakh), income from multiple properties, and winnings from lotteries or online gaming cannot be declared in ITR-1.
5. How do I know which ITR form to file?
The correct ITR form depends on factors like residential status, sources of income, income amount, and whether you are an individual, HUF, firm, or company. Choosing the correct form ensures compliance and avoids scrutiny.
6. Is there any change in the house property schedule for ITR-1?
Yes. A new schedule under Section 24(b) has been introduced. Taxpayers must provide details such as bank name, loan account number, sanction date, loan amount, interest payable for the year, and outstanding loan balance.
7. Which ITR is applicable for Non-Residents?
Non-Residents and RNORs cannot use ITR-1 or ITR-4. They must file returns using ITR-2 or ITR-3, depending on the type of income.
8. Can I file ITR for the last 4 assessment years?
Yes, past returns can be filed using the updated return (ITR-U) facility for up to 4 previous assessment years. For the current year, you must use the regular ITR forms (ITR-1 to ITR-7).
9. What documents are needed to file ITR-1?
You do not need to attach documents with the return. However, keep the following handy for accuracy:
- Form 16 from employer
- Form 26AS and AIS statement
- House rent receipts (if applicable)
- Proof of tax-saving investments (LIC, PPF, ELSS, etc.)
- Premium receipts (for medical insurance)
10. Which ITR should I file if I have capital gains?
If you earn short-term or long-term capital gains, you need to file ITR-2.
11. Which ITR form should salaried employees file?
- ITR-1: Salary up to ₹50 lakh, income from one house property.
- ITR-2: Salary plus capital gains, multiple house properties, or income above ₹50 lakh.
- ITR-3: Salary plus business/professional income.
- ITR-4: Salary plus presumptive income from freelancing or small business.
12. What happens if I miss the ITR filing due date?
You can still file a belated return, but late fees under Section 234F and interest on tax due may apply. Also, losses cannot be carried forward if filed after the due date.
13. Do I need to pay advance tax if I file under presumptive taxation?
Yes. If your total tax liability exceeds ₹10,000 in a financial year, you must pay advance tax. Under presumptive taxation (Sections 44AD/44ADA/44AE), the full amount should be paid by 15th March.
14. Is e-filing mandatory for all taxpayers?
Yes, e-filing is compulsory for most taxpayers except certain super senior citizens (80+ years) who may file a paper return if eligible.
15. Can I revise my ITR after filing?
Yes, if you discover an error or omission, you can file a revised return before the end of the assessment year or before completion of assessment, whichever is earlier.
16. Do I have to link PAN with Aadhaar before filing ITR?
Yes, PAN must be linked with Aadhaar to file ITR. Failure to do so may render the PAN inoperative.
17. What is ITR-U?
ITR-U (Updated Return) allows taxpayers to file or correct returns for up to 24 months after the end of the relevant assessment year, subject to payment of additional tax.
