Which ITR Should I File? Types of ITR Forms for FY 2024-25 (AY 2025-26)

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

What is ITR?

• Income Tax Return (ITR) is a form in which the taxpayers file information about their income earned and tax applicable, to the income tax department.
• The department has notified 7 forms i.e. ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 & ITR-7 to date. Every taxpayer should file his ITR on or before the specified due date. 
• The applicability of ITR forms varies depending on the sources of income of the taxpayer, the amount of the income earned, and the category of the taxpayer like individuals, HUF, company, etc.

What are the Different ITR Forms?

The following table comprehensively explains which ITR form should be filed for different types of income earned by the assessee.

Applicability of different kinds of ITR forms are explained elaborately below.

ITR-1 or SAHAJ

Form ITR-1 is for a resident individual whose total income for the AY 2025-26 includes:

• Total income not exceeding Rs. 50 lakh
• Income from Salary/ Pension; or
• Income from One House Property (excluding cases where loss is brought forward from previous years); or
• Income from Other Sources (excluding Winning from Lottery and Income from Race Horses)
• Long-term capital gains income u/s 112A up to Rs. 1.25 lakhs (having no brought-forward or carry-forward capital loss)
• Agricultural income up to Rs 5,000.

Who Cannot use ITR-1 Form?

• Total income exceeding Rs 50 lakh
• Agricultural income exceeding Rs 5000
• If you have taxable capital gains
• If you have income from business or profession
• Having income from more than one house property
• If you are a Director in a company
• If you have investments in unlisted equity shares at any time during the financial year
• Owning assets (including financial interest in any entity) outside India, including signing authority in any account located outside India
• If you are a Resident-not-Ordinarily Resident (RNOR) and Non-Resident
• Having any foreign income
• If tax has been deducted under Section 194N
• If in case payment or deduction of tax has been deferred on ESOP
• If you have any brought forward loss or loss needs to be carried forward under any income head

ITR-2

ITR-2 is for the use of an individual or a Hindu Undivided Family (HUF) whose total income for the AY 2025-26 includes:

• Income from Salary/Pension
• Income from House Property
• Income from Other Sources (including Winnings from Lottery and Income from Horse Races)
• If you are an Individual Director in a company
• If you have had investments in unlisted equity shares at any time during the financial year
• Being a Resident-not-Ordinarily Resident (RNOR) and Non-Resident
• Income from Capital Gains
• Having any foreign income
• Agricultural income more than Rs 5,000
• Owning assets (including financial interest in any entity) outside India, including signing authority in any account located outside India
• If tax has been deducted under Section 194N
• If in case payment or deduction of tax has been deferred on ESOP
• If you have any brought forward loss or loss needs to be carried forward under any income head

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.

Who Cannot use ITR-2?

Tax payers with Income from Business or Profession cannot file ITR-2. 

ITR-3

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:

• Carrying on a business or profession not opting for presumptive income
• Carrying on a business or profession, and is required to maintain books of accounts and/or required to get them audited.
• If you have had investments in unlisted equity shares at any time during the financial year
• The return may include income from House property, Salary/Pension, and Income from other sources
• Income of a person as a partner in the firm

In short, individuals or HUFs who are not eligible to file ITR-1, ITR-2, and ITR-4, should file ITR-3

ITR 4 or Sugam

The current ITR-4 applies to individuals and HUFs, Partnership firms (other than LLPs), which are residents and whose total income includes:

• Total income not exceeding Rs. 50 lakh
• Business income according to the presumptive income scheme under section 44AD or 44AE
• Professional income according to presumptive income scheme under section 44ADA
• Income from salary or pension 
• Income from one house property (excluding the amount of brought forward loss or loss to be carried forward)
• Income from other sources (excluding income from lottery and race-horses )
• Long-term capital gains income u/s 112A up to Rs. 1.25 lakhs (having no brought-forward or carry-forward capital loss)

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.

Who Cannot Use ITR-4 Form?

• If your total income exceeds Rs 50 lakh
• Having income from more than one house property
• Owning any foreign asset
• If you have signing authority in any account located outside India
• Having income from any source outside India
• If you are a Director in a company
• If you have had investments in unlisted equity shares at any time during the financial year
• Being a resident not ordinarily resident (RNOR) and non-resident
• Having foreign income or assets
• If you are assessable in respect of the income of another person in respect of which tax is deducted in the hands of the other person.
• If in case payment or deduction of tax has been deferred on ESOP
• If you have any brought forward loss or loss needs to be carried forward under any income head

ITR-5

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.

ITR-6

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.

ITR-7

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).

• Return under section 139(4A) is required to be filed by every person in receipt of income derived from property held under trust or other legal obligation wholly for charitable or religious purposes or in part only for such purposes.
• Return under section 139(4B) is required to be filed by a political party if the total income without giving effect to the provisions of section 139A exceeds the maximum amount, not chargeable to income-tax.
• Return under section 139(4C) is required to be filed by every –
  • Scientific research association;
  • News agency;
  • Association or institution referred to in section 10(23A);
  • Institution referred to in section 10(23B);
  • Fund or institution or university or other educational institution or any hospital or other medical institution.
• Return under section 139(4D) is required to be filed by every university, college or other institution, which is not required to furnish a return of income or loss under any other provision of this section.
• Return under section 139(4E) must be filed by every business trust which is not required to furnish a return of income or loss under any other provisions of this section.
• Return under section 139(4F) must be filed by any investment fund referred to in section 115UB. It is not required to furnish a return of income or loss under any other provisions of this section.

Which ITR Form to File?

The below table offers a details about which ITR form to file and the eligibility for such ITR forms:

Income Tax Form FY 2024-25 PDF Download: How To Download ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7 Forms 

Why Should You File ITR?

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: 

• If you want to claim an income tax refund from the department.
• If you have earned from or have invested in foreign assets during the FY.
• If you wish to apply for a visa or a loan
• If the taxpayer is a company or a firm, irrespective of profit or loss.
• If you have a loss from business/profession or under capital gains head, you will not be allowed to carry them forward to the next years unless you file the return before the due date.

Related Income Tax Articles

• First Time ITR Filing
• Income Tax e-Filing Guide
• ITR 1 vs ITR 4 Differences
• ITR-3 vs ITR-4 Key Differences
• ITR 1 vs ITR 2 Differences
• Income tax slabs
• Old vs New Tax Regime