Filing Income Tax Returns (ITR) is mandatory for individuals and businesses meeting certain criteria in India. Choosing the correct ITR form is crucial—using the wrong form can lead to your return being treated as defective. This guide helps you select the right ITR form based on your income sources.
🆕 FY 2025-26 Updates (Assessment Year 2026-27)
New Tax Regime Default: Zero tax on income up to ₹12 lakhs (with rebate u/s
87A). Basic exemption raised to ₹4 lakhs.
Extended Due Dates: ITR-3/ITR-4 now due by August 31 (previously July 31).
Revised returns extended to March 31.
Quick ITR Form Selection Guide
| ITR Form | Who Should Use | Key Criteria |
|---|---|---|
| ITR-1 (Sahaj) | Salaried individuals | Income up to ₹50 lakhs, salary + one house property + other sources |
| ITR-2 | Individuals & HUFs | Capital gains, multiple house properties, foreign income/assets |
| ITR-3 | Business/Profession | Income from business or profession (proprietorship) |
| ITR-4 (Sugam) | Presumptive taxation | Business income under sec 44AD/44ADA/44AE |
| ITR-5 | LLPs, Partnership Firms | Entities other than individuals, HUFs, and companies |
| ITR-6 | Companies | All companies except those claiming exemption u/s 11 |
| ITR-7 | Trusts, Political Parties | Persons including companies required to file u/s 139(4A-4F) |
ITR-1 (Sahaj) - For Salaried Individuals
ITR-1 is the simplest form, designed for resident individuals with straightforward income sources:
- Total income up to ₹50 lakhs
- Income from salary/pension
- Income from one house property (not loss brought forward)
- Income from other sources (interest, dividend, etc.)
- Agricultural income up to ₹5,000
⚠️ You Cannot Use ITR-1 If You Have
Capital gains, more than one house property, foreign assets/income, or income exceeding ₹50 lakhs. Directors of companies and those with unlisted equity shares must also use ITR-2 or ITR-3.
ITR-2 - For Individuals with Capital Gains
Use ITR-2 if you have:
- Capital gains from shares, mutual funds, property sale
- More than one house property
- Foreign income or foreign assets
- Director of a company
- Unlisted equity shares
- Agricultural income exceeding ₹5,000
ITR-3 - For Business Income
ITR-3 is for individuals and HUFs with income from:
- Proprietorship business
- Professional practice (doctors, lawyers, CAs, etc.)
- Partner in a firm (receiving salary/remuneration)
- Income from business not covered under presumptive taxation
ITR-4 (Sugam) - Presumptive Taxation
ITR-4 is a simplified form for small businesses opting for presumptive taxation:
- Section 44AD: Business with turnover up to ₹3 crores (₹2 crores if cash receipts > 5%)
- Section 44ADA: Professionals with gross receipts up to ₹75 lakhs (₹50 lakhs if cash receipts > 5%)
- Section 44AE: Goods carriage business
💡 Advantage of Presumptive Taxation
Under presumptive taxation, you don't need to maintain detailed books of accounts. Income is presumed at 8% (6% for digital transactions) for business or 50% for professionals.
Key Due Dates for ITR Filing (FY 2025-26)
| Category | Due Date |
|---|---|
| Individuals (ITR-1, ITR-2) - non-audit | July 31, 2026 |
| Business (ITR-3, ITR-4) - non-audit | August 31, 2026 (Extended) |
| Businesses requiring audit | October 31, 2026 |
| Transfer Pricing cases | November 30, 2026 |
| Belated Return | December 31, 2026 |
| Revised Return | March 31, 2027 (Extended) |
| Updated Return | March 31, 2031 |
Documents Required for ITR Filing
- Form 16 - from employer for salary income
- Form 16A/16B/16C - TDS certificates
- Form 26AS - Annual tax statement
- AIS (Annual Information Statement) - Comprehensive financial data
- Bank statements - for interest income
- Investment proofs - 80C, 80D, HRA, etc.
- Capital gains statements - from brokers/mutual funds
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