Income Tax Series – Choosing the Right ITR Form (AY 2025–26)

Filing your Income Tax Return correctly is key to compliance and smooth refund processing. Whether you're a Resident, NRI, HUF, or Firm — here’s a clear guide to help you choose the right form for FY 2024–25 (AY 2025–26):

✅ ITR-1 (Sahaj)

Applicable to:

• Resident Individuals (excluding Not Ordinarily Residents)

• Income from:

• Salary / Pension

• One House Property (no loss carried forward)

• Other Sources (excluding lottery, racehorses, etc.)

• Long-Term Capital Gains (LTCG) up to ₹1,25,000 under Sec 112A• Total income ≤ ₹50 lakh

Not Applicable to:

✖️ Non-Residents (NRIs)

✖️ Individuals with:

• Capital Gains (except LTCG up to ₹1,25,000)

• Business or Professional income

• Agricultural income > ₹5,000

• More than one house property

• Foreign Assets or Foreign Income

• Dividend under Sec 115BBDA

• Brought forward losses

✅ ITR-2

Applicable to:

• Individuals & HUFs not having income from business or profession

• NRIs with income from salary, capital gains, more than one house property, or other sources

•  Salaried individuals with equity investments, capital gains/losses, and foreign income

✅ ITR-3

Applicable to:

• Individuals/HUFs having Business or Professional Income

• Salaried individuals with:

• Intra-day trading

• F&O income

  
  

• Partners in a Firm

  
  

• Required Disclosures:

  Balance Sheet, P&L Account,Depreciation Schedule,& Deductions under Chapter VI-A

  
  

• ✅ ITR-4 (Sugam)

  Applicable to:

• Individuals, HUFs, and Firms (except LLPs) opting for Presumptive Taxation under:

  
  

  • Sec 44AD (Business)

  • Sec 44ADA (Professionals)

  • Sec 44AE (Transporters)

  
  

• 🔹 Ideal for small businesses, consultants, freelancers, and transporters using simplified tax options.

• 
  

• ✅ ITR-5

  Applicable to the following entities (other than those required to file ITR-7):

• ✔️ Firms (including LLPs)

• ✔️ Association of Persons (AOPs)

• ✔️ Body of Individuals (BOIs)

• ✔️ Artificial Juridical Persons (AJPs)

• ✔️ Co-operative Societies

• ✔️ Local Authorities

• ✔️ Registered Societies / Trusts (if not claiming exemption under Sections 11 or 12)

  
  

• Not Applicable to:

• ✖️ Individuals

• ✖️ HUFs

• ✖️ Companies (file ITR-6 or ITR-7)

• ✖️ Persons required to file ITR-7 (e.g. charitable trusts, political parties)

  
  

• 🧾 Disclosures Required in ITR-5

  1. Basic Details

     🔹 PAN, Constitution of the entity, Business code

     🔹 Whether books are maintained and audited

  2. Income Sources🔹 Income from Business/Profession🔹 House Property Income🔹 Capital Gains🔹 Income from Other Sources🔹 Agricultural Income (if applicable)

  3. Statements & Schedules🔸 Balance Sheet🔸 Profit & Loss Account🔸 Schedule BP – Computation of Business Income🔸 Schedule HP, CG, OS – Property, Capital Gains, Other Sources🔸 Schedule VI-A – Deductions under Chapter VI-A🔸 Schedule OI – Other Information (payments, loans, etc.)🔸 Schedule TDS/TCS – Tax credits🔸 Audit Report Details (if applicable under Sec 44AB or 92E)

  4. Tax Computation

     🔹 Advance tax and self-assessment tax

     🔹 Interest and late filing fees

     🔹 Refund details and bank information

     
     

  5. Verification

     🔹 By authorized partner/member

     🔹 Digital Signature or EVC (mandatory for audit cases)

  
  

  ✅ ITR-6 – For Companies Not Claiming Exemption under Sec 11

  Applicable to:

• ✔️ All Companies registered under the Companies Act

• ✔️ Includes Private Limited, Public Limited, One Person Company (OPC), Section 8 Companies

• ✔️ Companies earning income from business/profession, capital gains, etc.

  Not Applicable to:

  
  

• ✖️ Companies claiming exemption under Section 11 (income from property held for charitable or religious purposes) – such companies must file ITR-7

  
  

• ✅ ITR-7 – For Entities Claiming Exemption

  Applicable to:

  
  

• ✔️ Persons including companies, firms, associations required to file return under:

  • Section 139(4A) – Income of trusts/institutions under Sec 11

  • Section 139(4B) – Political parties

  • Section 139(4C) – Scientific research institutions, hospitals, universities, etc.

  • Section 139(4D) – Colleges and educational institutions not filing under any other section

  Not Applicable to:

  
  

• ✖️ Individuals, HUFs, or companies not claiming exemption under the above sections

  
  

  • 🗓️ Revised Due Dates – AY 2025–26

    ✔️ 15th September 2025 – For taxpayers not liable to audit extended from 31st July 2025

  • ✔️ 31st October 2025 – For audit cases (Firms, Businesses)

  • ✔️ 30th November 2025 – For assessees with international or specified domestic transactions (Transfer Pricing)