Which ITR Form Should You File? A Simplified Guide (AY 2025–26)

Income Tax Return filing is one feather in the cap on the back of every income-earning person and business. However, when it comes to deciding the right ITR form, the choice is frequently daunting. The Income Tax Department, in fact, has many ITR forms, each meant for a particular kind of income and category of taxpayers. Once the wrong form is filed, either outright rejection by rawdocument for the return filed or reprocessing delays is expected. This guide simplifies the choice to make for ITR form.

What Are ITR Forms?

ITR forms are selected formats provided by the Income Tax Department in which you declare your income, deductions, and tax liabilities for a financial year. There are seven main forms for FY 2024-25 (AY 2025-26) for individuals, professionals, HUFs, and businesses.

Which ITR Form Applies to You?

Now, let's find out what fits based on your income sources and type of taxpayer:

1. ITR-1 (Sahaj)

For: Resident Individuals (not HUF)

Income Limit: Up to ?50 lakh

Applicable If:

• Salary or pension income.
• Income from one house property.
• Other sources such as interest (not lottery or race).
• Agricultural income (up to ?5,000).

Not Applicable for:

• Director in a company.
• If foreign assets or foreign income is involved.
• If having Capital Gains.

2. ITR-2

For: Individuals & HUFs not having income from business or profession

Applicable if:

• Capital gains from shares, mutual funds, or property
• You have foreign income or own foreign assets
• Income from more than one house property
• Agricultural income > ?5,000

3. ITR-3

For: Individuals & HUFs having income from business/profession

Applicable If:

• You are a partner in a firm
• You earn income through freelancing or consulting
• You have presumptive income but want to declare actual profit

4. ITR-4 (Sugam)

For: Individuals, HUFs and Firms (other than LLPs) under presumptive taxation

Income Limit: Upto ?50 lakhs for professionals, ?2 crores for businesses

Applicable If:

• You are opting for 44AD, 44ADA, 44AE (presumptive income)
• Only one house property, and other sources of income

Not For:

• Having foreign income or assets
• Directors in a company

5. ITR-5

For: Firms, LLPs, AOPs, BOIs and such other entities.

For non-individuals other than companies and trusts.

6. ITR-6

For: Companies (other than those claiming exemption under Section 11)

The return has to be filed electronically with digital signature.

7. ITR-7

For: Entities claiming exemption as per Sections like 139(4A), 139(4B), and so on.

Used by trusts, religious institutions, political parties, etc.

How to Choose?

• Begin with your sources of income. Generally, salaried individuals with no capital gain issues usually go for ITR-1.
• Then go by the complexity. Multiple properties, capital gains, or foreign income considerations move you to ITR-2.
• Having income from business or profession? Consider ITR-3 or ITR-4 depending on whether you opt for presumptive taxation.
• In cases of entities and companies, select ITR-5, 6, or 7 based upon the status and purpose.

Conclusion-

The right ITR would lead to smooth processing and compliance. When in doubt, the safest way is to ask an expert for help. Now with the increasing emphasis being laid on online filing, choosing the right ITR form would certainly save you a lot of legal complications or income tax notices.