All Types of Income Tax Return

Which ITR Should I File? & Their Types

ITR stands for Income Tax Return. The Central Board of Direct Taxes (CBDT) releases all the ITR forms and specifies the procedures to be followed. This article provides an in-depth understanding of the definition of ITR and the types of ITR forms.

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.

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ITR-1 OR SAHAJ

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

Total income up to 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 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 had 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 you are assessable with respect to the income of another person with respect to which tax is deducted from the hands of the other person,
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

Still, do you have any doubts about ITR-1 in your mind?

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 Race Horses)
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?

This Return Form should not be used by an individual whose total income for the AY 2025-26 includes Income from Business or Profession. For declaring these types of Income, you may have to use ITR-3 or ITR-4.

ITR-3

The current ITR-3 Form is to be used by an individual or a Hindu Undivided Family who have 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 not opting for presumptive income
Carrying on a business or profession who is required to maintain the 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 up to 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 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 a presumptive 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 Person (AJP), Estate of deceased, Estate of insolvent, Business trust and investment fund.

ITR-6

ITR-7

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.

Why Should You File 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.

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Query

FAQs on Types of ITR

Who is eligible to opt for a presumptive taxation scheme for filing ITR-4?

The presumptive taxation scheme is designed to give relief to small taxpayers from the burden of maintaining books of accounts with a turnover not exceeding Rs.2 crore. Under this scheme, the taxable income is calculated at a prescribed rate on the total turnover.

Which ITR should I file if i have capital gains ?

You can file ITR-2, if you earn capital gains income.

What difference does ITR 1 and ITR 2 have?

ITR 1 is filed for individuals who earn income under the head Salaries, and if your total income is below Rs. 50 Lakhs. You can file ITR 2 if you have capital gains, more than one house property, or your income has exceeded Rs.50 Lakhs .

Which ITR form to file for salaried emloyees?

applicable to a taxpayer depends on the type of taxpayer, total income, nature and the type of income. Here are the various ITR Forms applicable to salaried employees –

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All Types of Income Tax Return

Which ITR Should I File? & Their Types