The Income Tax Department has released new ITR forms for the Assessment Year 2025-26 (for the financial year 2024-25). These forms are now available for salaried individuals, business owners, professionals, and even trusts or companies. But the big question for every taxpayer is – which ITR form should you choose?
Filing the wrong form may lead to rejection or even penalties. So let’s make things simple and clear. Here’s a complete and easy guide on ITR-1 to ITR-7, who should file what, and what are the new updates this year.
📌 What is an ITR Form?
The ITR (Income Tax Return) form is a document where taxpayers report their income, deductions, and taxes paid in a financial year. Different forms are available depending on the nature and amount of income.
🧾 List of ITR Forms and Who Should File Them
Below is a simple table explaining which ITR form is suitable for whom:
| ITR Form | Best For |
| ITR-1 | Salaried individuals with income up to Rs. 50 lakh |
| ITR-2 | People with income from stocks, property, or foreign income |
| ITR-3 | Professionals, freelancers, and business income earners |
| ITR-4 | Small businesses or professionals under presumptive scheme |
| ITR-5 | Firms, LLPs, AOPs, BOIs, etc. |
| ITR-6 | Companies not claiming exemption under Section 11 |
| ITR-7 | Trusts, political parties, educational/research institutions |
📄 ITR-1 (Sahaj): For Salary and Small Capital Gains
Who can file:
- Resident individual (not HUF)
- Total income up to Rs. 50 lakh
- Income from salary, one house property, and other sources
- Long-term capital gains up to Rs. 1.25 lakh from listed shares or mutual funds (Section 112A)
Who cannot file:
- If you are a director in a company
- If you own unlisted shares or have foreign assets
- If your capital gains are more than Rs. 1.25 lakh
✅ New Feature:
Now salaried taxpayers with LTCG up to Rs. 1.25 lakh can file ITR-1 instead of ITR-2.
🏘️ ITR-2: For High Earners and Multiple Asset Holders
Who can file:
- Individuals or HUFs
- Income from salary, more than one house, capital gains, foreign income
- Total dividend income above Rs. 10 lakh
- Investors in listed and unlisted shares
Who cannot file:
- Those with income from business or profession
🆕 What’s New:
- Capital Gains Split – Must mention if gains occurred before or after 23 July 2024 (due to tax rate changes).
- Buyback Loss Allowed – Only for buybacks from 1 Oct 2024, if dividend shown under “other sources”.
- Assets Reporting – Earlier, those with income above Rs. 50 lakh had to show assets and liabilities. Now the limit is raised to Rs. 1 crore.
- More Deduction Details – Detailed inputs needed for deductions under Section 80C, 80D, etc.
- TDS Section Code Mandatory – Must mention the section under which TDS was deducted.
💼 ITR-3: For Businessmen, Traders, and Freelancers
Who can file:
- Individual/HUF earning income from business or profession
- Freelancers, shopkeepers, doctors, lawyers, traders
- Partners in partnership firms
- People doing F&O or intraday share trading
What’s New in ITR-3:
- Report capital gains before and after 23 July 2024 separately
- Loss from buyback after 1 Oct 2024 allowed only if dividend reported
- Assets & liabilities reporting required if income exceeds Rs. 1 crore
- More detailed information needed for deductions (HRA, 80C, etc.)
- Must mention TDS section codes (e.g., 194A, 194H)
📊 ITR-4 (Sugam): For Small Business Owners Using Presumptive Tax Scheme
Who can file:
- Resident individuals, HUFs, or firms (except LLPs)
- Using presumptive income under 44AD, 44ADA, 44AE
- Income up to Rs. 50 lakh for professionals or Rs. 2 crore for businesses
Who cannot file:
- NRI taxpayers
- Those with foreign income or foreign assets
- Directors in a company or people with unlisted shares
This is the simplest form for small traders, cab drivers, tailors, electricians, and similar professionals.
👥 ITR-5: For Firms, LLPs, and Associations
Who can file:
- Partnership firms (not individual owners)
- LLPs (Limited Liability Partnerships)
- Associations of Persons (AOPs)
- Bodies of Individuals (BOIs)
- Artificial Juridical Persons (like temples or universities)
What’s New in ITR-5:
- Capital gains must be shown separately for before and after 23 July 2024
- Buyback loss rules same as ITR-2 and ITR-3
- Cruise business now included under Section 44BBC
- Mentioning the TDS section code is now mandatory
🏢 ITR-6: For Companies Not Claiming Section 11 Exemption
Who can file:
- Companies that don’t take tax exemption under Section 11 (meant for religious or charitable trusts)
Who cannot file:
- Individual taxpayers
- Trusts, NGOs, political parties
🎓 ITR-7: For Trusts, NGOs, and Political Parties
Who can file:
- Charitable or religious trusts
- Educational institutes
- Research organizations
- Political parties
They must be claiming tax benefits under Sections 139(4A) to 139(4F).
📅 Key Dates to Remember (AY 2025-26)
| Category | Last Date |
| Without Audit | 31 July 2025 |
| With Audit | 31 October 2025 |
| Revised/Belated Return | 31 December 2025 |
