ITR stands for Income Tax Return. Every taxpayer should furnish the income earned during the year through the applicable ITR forms. The ITR form applicable depends on the type and amount of income of the taxpayer as follows: ITR-1: Salaried individuals with income up to ₹50 lakh; ITR-2: Individuals with capital gains; ITR-3: Income from business or profession; ITR-4: Presumptive income for small businesses and professions ITR-5: Firms, LLPs, AOPs, and BOIs; ITR-6: Companies; and ITR-7: Charitable trusts.
Income Tax Return (ITR) is a form used by taxpayers to report their income and taxes to the Income Tax Department. There are seven ITR forms (ITR-1 to ITR-7), and the correct form depends on factors like income source, income amount, and taxpayer category (individual, HUF, company, etc.). Filing must be done before the specified due date each year.
Applicability of different kinds of ITR forms are explained elaborately below.
ITR-1, also known as Sahaj, is the income tax return form for resident individuals (not HUFs or companies) with total income up to ₹50 lakh. It is applicable for those earning income from:
ITR-2 is the income tax return form for individuals and Hindu Undivided Families (HUFs) who do not have income from business or profession. It is applicable when your total income 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.
ITR-3 is the Income Tax Return form for individuals and Hindu Undivided Families (HUFs) who have income from a business or 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
ITR-4 (also known as Sugam) is the Income Tax Return form for individuals, Hindu Undivided Families (HUFs), and firms (other than LLPs) who have opted for the presumptive income scheme under Section 44AD, 44ADA, or 44AE of the Income Tax Act.
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 the Income Tax Return form applicable to entities other than individuals, HUFs, companies, and those filing ITR-7. It is meant for partnership firms, LLPs, AOPs, BOIs, and other similar entities.
ITR-6 is the Income Tax Return form applicable to companies other than those claiming exemption under Section 11 (i.e., income from property held for charitable or religious purposes).
ITR-7 is the Income Tax Return form applicable to persons (including companies) who are required to file returns under sections 139(4A), 139(4B), 139(4C), or 139(4D) of the Income Tax Act, primarily related to charitable, religious, and specified institutions.
Choosing the correct ITR form depends on your income type, taxpayer category, and income level. For example, ITR-1 is for salaried individuals with income up to ₹50 lakh, while ITR-3 is for those with business or professional income. Knowing the right ITR form helps ensure accurate and hassle-free filing with the Income Tax Department.
The below table offers 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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