ITR stands for Income Tax Return. Every taxpayer should furnish the income earned during the year through ITR forms applicable to him. Depending on the type and amount of income earned, different ITR forms become applicable for him. Broadly, the applicable ITR forms can be perceived as follows:
ITR-1 is for salaried individuals within Rs. 50 lakhs, ITR-2 for Capital Gains, ITR-3 for business income, ITR-4 for small business and professions, ITR-5 for firms, LLPs, AOPs, BOIs, ITR-6 for companies, and ITR-7 is for charitable trusts.
This article provides an in-depth understanding of the definition of ITR and the types of ITR forms.
The Income Tax Department has now released the Excel based utility for ITR 2 and ITR 3 for FY 2024-25 (AY 2025-26). Taxpayers who have capital gains business income can now proceed to file their returns for income earned between 01st April, 2024 to 31st March, 2025.
ITR 2 and ITR 3 Excel Based Utility download
The following table comprehensively explains which ITR form should be filed for different types of income earned by the assessee.
ITR Form | Applicable to | Salary | House Property | Business Income | Capital Gains | Other Sources | Exempt Income | Lottery Income | Foreign Assets/Foreign Income | Carry Forward Loss |
ITR-1 / Sahaj | Individual, HUF (Residents) | Yes | Yes(One House Property) | No | No | Yes | Yes (Agricultural Income less than Rs 5,000) | No | No | No |
ITR-2 | Individual, HUF | Yes | Yes | No | Yes | Yes | Yes | Yes | Yes | Yes |
ITR-3 | Individual or HUF, partner in a Firm | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
ITR-4 / Sugam | Individual, HUF, Firm | Yes | Yes(One House Property) | Presumptive Business Income | No | Yes | Yes (Agricultural Income less than Rs 5,000) | No | No | No |
ITR-5 | Partnership Firm/ LLP | No | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
ITR-6 | Company | No | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
ITR-7 | Trust | No | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Applicability of different kinds of ITR forms are explained elaborately below.
Form ITR-1 is for a resident individual whose total income for the AY 2025-26 includes:
ITR-2 is for the use of an individual or a Hindu Undivided Family (HUF) whose total income for the AY 2025-26 includes:
Further, in a case where the income of another person like one’s spouse, child etc. is to be clubbed with the income of the assessee, this Return Form can be used where such income falls in any of the above categories.
The total income can be more than Rs 50 Lakhs.
Tax payers with Income from Business or Profession cannot file ITR-2.
The current ITR-3 Form is to be used by an individual or a Hindu Undivided Family who has income from a proprietary business or is carrying on a profession. The persons having income from the following sources are eligible to file ITR-3:
In short, individuals or HUFs who are not eligible to file ITR-1, ITR-2, and ITR-4, should file ITR-3
The current ITR-4 applies to individuals and HUFs, Partnership firms (other than LLPs), which are residents and whose total income includes:
Please note that any individual earning income from the above-mentioned sources as a freelancer can also opt for the presumptive taxation scheme if their gross receipts are not more than Rs. 50 lakhs.
A presumptive income scheme under sections 44AD, 44AE, and 44ADA is when an individual or an entity opts to derive its income on a presumptive basis, i.e. when the income is presumed at a minimum rate based on a percentage of gross receipts / gross turnover or based on ownership of commercial vehicles. However, if the business turnover exceeds Rs 2 crore, the taxpayer will have to file ITR-3.
ITR-5 is for firms, LLPs (Limited Liability Partnership), AOPs (Association of Persons), BOIs (Body of Individuals), Artificial Juridical Persons (AJP), Estate of deceased, Estate of insolvent, Business trust and investment fund.
For Companies other than companies claiming exemption under Section 11 (Income from property held for charitable or religious purposes), ITR-6 has to be filed electronically only.
Form ITR-7 is for persons including companies required to furnish returns under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) or section 139(4E) or section 139(4F).
The below table offers a details about which ITR form to file and the eligibility for such ITR forms:
ITR Form | Who Can File | Who Cannot File |
ITR-1 (Sahaj) | Resident individuals with income up to ₹50 L from: salary/pension, one house property, other sources (interest, etc.), and agricultural income ≤ ₹5,000; now includes LTCG up to ₹1.25 L from equity/fund holdings | NRIs, residents with >₹50 L income, multiple properties, capital losses carry‑forward, business income, foreign assets, company directors, ESOP holders |
ITR-2 | Individuals/HUFs (including NRIs/RNORs) with salary/pension + capital gains (any amount), multiple house property income, foreign income/assets, agricultural income > ₹5,000, unlisted shares, ESOPs, company directors | Individuals with business/professional income |
ITR-3 | Individuals/HUFs with income from a proprietary business or profession, partners in firms (not LLPs), F&O trading, unlisted shares, plus salary, house property, capital gains | Those without business/professional income |
ITR-4 (Sugam) | Resident individuals/HUFs/firms (excluding LLPs) opting for presumptive taxation under sections 44AD/44ADA/44AE, with income ≤ ₹50 L; includes salary, one house, equity LTCG ≤ ₹1.25 L | Company directors, unlisted shares holders, turnover > ₹2 Cr, foreign assets, multiple properties, capital‑loss carry‑forward |
ITR-5 | Firms, LLPs, AOPs, BOIs, local authorities, cooperative societies, estates, business trusts – all non-individual entities (excluding those required to file ITR‑7) | Individual or HUF taxpayers, companies |
ITR-6 | Companies (other than those claiming exemption under section 11) | Trusts or institutions under section 11 |
ITR-7 | Trusts, political parties, scientific/research institutions, universities, hospitals, NGOs, other institutions required under sections 139(4A)/(4B)/(4C)/(4D)/(4E)/(4F) | Individuals, HUFs, firms, and companies not covered above |
ITR Forms | Links |
ITR-1 | Click here to download ITR-1 Form |
ITR-2 | Click here to download ITR-2 Form |
ITR-3 | Click here to download ITR-3 Form |
ITR-4 | Click here to download ITR-4 Form |
ITR-5 | Click here to download ITR-5 Form |
ITR-6 | Click here to download ITR-6 Form |
ITR-7 | Click here to download ITR 7 Form |
Not filing an ITR has its consequences. However, ITR filing is more beneficial rather than a burden. The following the are benefits of filing an ITR:
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