What ITR should I file in FY 2025-26?

Different kinds of ITR forms and when to use them

There are several kinds of ITR forms for different kinds of taxpayers, depending on things like where they live, how much money they make, their legal status (person, firm, or company), and so on.

Key Important Points

The type and amount of income that the taxpayer has will determine which ITR form they need to fill out.

ITR 1: People who work for a salary and make up to Rs. 50 lakh
ITR 2: People who have made money from investments
ITR 3: Money made from a job or business
ITR 4: Business and professional income less than Rs. 50 lakh
ITR 5: Companies, LLPs, AOPs, and BOIs
ITR 6: Businesses
ITR 7: Trusts for charity

What does ITR mean?

The Income Tax Return (ITR) is a form that people use to tell the Income Tax Department about their income and taxes. Every year, filing must be done before the due date. There are seven ITR forms (ITR-1 to ITR-7), and the right one for you will depend on things like how much money you make, where you get it from, and what type of taxpayer you are (individual, HUF, firm, etc.).

Various Kinds of ITR Forms

Below, we go into great detail about when to use different types of ITR forms.

1. ITR-1

Who may utilize ITR-1?

A taxpayer can file under ITR-1 if the following conditions are met:

• People who live residentially.
• Total income can’t be more than Rs. 50 lakh.
• Income from a salary or pension; income from one house property (not including losses carried over from previous years); or income from other sources (not including lottery winnings or racehorse income).
• Long-term capital gains income under section 112A up to Rs. 1.25 lakhs (with no capital loss that was brought forward or carried forward)
• Income from farming up to Rs 5,000.

Who can’t fill out the ITR-1 form?

1. Income that is more than Rs 50 lakh
2. Income from farming that is more than Rs 5000

• If you have financial gains that are taxed
• If you make money from a job or business
• Getting money from more than one house property
• If you are a company director
• If you own unlisted equity shares at any point throughout the financial year,
• Having assets (including a financial interest in any business) outside of India, such as the ability to sign checks in any account outside of India
• If you are a Non-Resident and Resident-not-Ordinarily Resident (RNOR)
• Having money from another country
• If tax has been taken out under Section 194N
• If payment or tax deduction on ESOP has been put off
• If you have any losses that need to be carried forward under any revenue head,

ITR-2

Who Can Use ITR-2?

A taxpayer can use ITR-2 if the following conditions are met:

• Money from a salary or pension
• Money from House Property
• Money coming in from other places, such lottery winnings and horse race winnings
• If you are a director of a corporation on your own
• If you have owned unlisted equity shares at any point during the financial year,
• Income from capital gains for residents-not-ordinarily-residents (RNOR) and non-residents
• Having money from outside the US
• Income from farming that is higher than Rs 5,000
• Having assets (including a financial interest in any business) outside of India, such as the ability to sign checks in any account situated outside of India
• If tax has been taken out under Section 194N
• If payment or tax deduction on ESOP has been put off
• If you have any losses from the past that need to be carried forward under any income head
• Also, if the income of someone else, like a spouse, child, or other family member, needs to be combined with the income of the person filing the return, this Return Form can be utilized if that income fits into one of the categories above. The total income can go over Rs 50 Lakhs.

Who Can’t Use ITR-2?

• People who make money from a business or profession can’t submit ITR-2.

ITR-3:

Who Can Use It?

• If the following conditions are met, a taxpayer can file under ITR-3.
• Individual or HUF
• Having income from business and profession (in both presumptive taxes and audit scenarios)
• If you have ever owned unlisted equity shares during the financial year
• The return could include money from house property, a salary or pension, and other sources of income.
• A person’s income as a partner in the business

Who Can’t File ITR-3?

1.  Businesses
2. Trusts for business and charity
3. Partnership firms, AOPs, BOIs, and so forth. In summary, people or HUFs who can’t submit ITR-1, ITR-2, or ITR-4 should file ITR-3.

ITR 4 or Sugam:

• The Income Tax Return form for people, Hindu Undivided Families (HUFs), and businesses (other than LLPs) who have chosen the presumptive income plan under Section 44AD, 44ADA, or 44AE of the Income Tax Act is ITR-4, also known as Sugam.

Who may utilize ITR-4?

• A taxpayer can file ITR-4 if the following conditions are met:
• People who live there.
• Total income can’t be more than Rs. 50 lakh.
• Income from work and business
• Money you get from your job or pension
• Income from one piece of real estate, not including any losses that were carried over from the previous year or that will be carried over to the next year
• Income from other sources, not include money from lottery tickets and horse races
• Long-term capital gains income under section 112A maximum of Rs. 1.25 lakhs (with no capital loss carried over from the previous year)
• If you work as a freelancer and make money from the sources listed above, you can also choose the presumptive taxation scheme if your gross revenues are less than Rs. 50 lakhs.
• Under sections 44AD, 44AE, and 44ADA, a presumptive income scheme is when a person or business chooses to earn money on a presumptive basis. This means that the income is assumed to be at least a certain amount based on a percentage of gross receipts or gross turnover or based on owning commercial vehicles. But if the business makes more above Rs 2 crore, the taxpayer will have to submit ITR-3.

Who Can’t Use the ITR-4 Form?

• If your overall income is more than Rs 50 lakh
• Getting money from more than one house property
• Having any asset outside of your country
• If you can sign for any account that is not in India,
• Getting money from any source outside of India
• If you are the Director of a business
• If you have owned unlisted equity shares at any point during the financial year,
• Being a resident who is not normally a resident (RNOR) and a non-resident
• Having money or property in another country
• If you are responsible for paying taxes on someone else’s income, the other person will have to pay the taxes.
• If payment or deduction of tax has been put off on ESOP
• If you have any losses that need to be carried forward under any revenue head or brought forward

ITR-5

Who can file an ITR-5?

ITR-5 is the form for filing an income tax return for:

• Partnership companies
• Partnership with Limited Liability (LLP)
• Group of People (AOP)
• Body of Individuals (BOI)
• Other groups like this
• Who can’t file an ITR-5?
• People, HUFs, and companies are not the only types of entities.
• People who can file ITR-7
• Who can file ITR-6?
• Companies must use the ITR-6 form to file their income tax returns.

Who can’t file ITR-6?

Taxpayers who seek an exemption under Section 11: Income from property kept for religious or charitable purposes.

ITR-7

• ITR-7 is the Income Tax Return form that people (including companies) need to fill out if they have to submit returns under sections 139(4A), 139(4B), 139(4C), or 139(4D) of the Income Tax Act. These provisions mostly deal with charitable, religious, and certain institutions.
• Everyone who gets money from property held in trust or for other legal reasons only for charity or religious purposes, or only for such purposes, must make a return under section 139(4A).
• A political party must file a return under section 139(4B) if its total revenue, not counting the rules in section 139A, is more than the maximum amount that is not subject to income tax.
• Every scientific research group, news agency, association or institution mentioned in section 10(23A), institution mentioned in section 10(23B), fund or institution or university or other school or hospital or other medical facility must file a return under section 139(4C).
• Every university, college, or other institution that doesn’t have to file a report of revenue or loss under any other part of this section must file a return under section 139(4D).
• Every business trust that doesn’t have to make a return of income or loss under any other part of this section must file a return under section 139(4E).
• Any investment fund mentioned in section 115UB shall file a return under section 139(4F). You don’t have to give a return of income or loss under any other parts of this section.

What is ITR 1? What are the top secrets of ITR 1?

You can also read this one:

What is ITR 1? What are the top secrets of ITR 1?

https://eportal.incometax.gov.in/iec/foservices/#/TaxCalc/calculator

Returns and Forms Applicable for Domestic Company for AY 2025-26