Filing Your Return with the Right ITR Form
The Income Tax Return (ITR) Forms for Financial Year 2025-26 (Assessment Year 2026-27) are prescribed by the Central Board of Direct Taxes (CBDT) for reporting income, deductions, taxes paid, and financial disclosures. Selecting the correct ITR form is essential: filing in the wrong form renders your return defective under Section 139(9) of the Income-tax Act.
The applicable ITR form is determined by:
- The taxpayer's legal constitution (Individual, HUF, Firm, LLP, Company, Trust).
- The nature and source of income earned (Salary, Business, Capital Gains, Foreign Income).
- The total quantum of income earned during the financial year.
- Holding of foreign assets or signing authority in foreign accounts.
Types of ITR Forms for FY 2025-26 (AY 2026-27)
1. ITR-1 (Sahaj) Salaried / Pensioners
Applicable For: Resident Individuals who are Resident and Ordinarily Resident (ROR) having total income up to ₹50 lakh.
Permissible Sources of Income:
- Income from Salary or Pension.
- Income from One House Property (single house ownership).
- Income from Other Sources (bank interest, dividends, etc.).
- Agricultural Income up to ₹5,000.
2. ITR-2 Capital Gains & Multiple Properties
Applicable For: Individuals and Hindu Undivided Families (HUFs) who do not have income from business or profession.
Permissible Sources of Income:
- Salary or Pension income (with no upper limit on quantum).
- Income from more than one house property.
- Capital Gains (short-term and long-term gains from shares, mutual funds, real estate, gold).
- Foreign assets, foreign bank accounts, or foreign-source income.
- Agricultural income exceeding ₹5,000.
- Individuals holding directorship in an Indian or foreign company or holding unlisted equity shares.
3. ITR-3 Business Owners & Professionals
Applicable For: Individuals and HUFs having income from Profits and Gains from Business or Profession (PGBP).
Who Must File ITR-3:
- Proprietors and business owners maintaining audited or non-audited books of accounts.
- Professionals (doctors, engineers, CAs, architects, IT consultants) not opting for presumptive taxation.
- Partners in partnership firms or LLPs (reporting partner remuneration and profit share).
- Taxpayers engaging in intraday trading, futures & options (F&O) derivatives trading.
4. ITR-4 (Sugam) Presumptive Taxation
Applicable For: Resident Individuals, HUFs, and Partnership Firms (other than LLPs) opting for the Presumptive Taxation Scheme with total income up to ₹50 lakh.
Qualifying Presumptive Sections:
- Section 44AD: Small business turnover up to ₹2 crore (or ₹3 crore if digital receipts exceed 95%).
- Section 44ADA: Specified professionals with gross receipts up to ₹50 lakh (or ₹75 lakh if digital receipts exceed 95%).
- Section 44AE: Small goods carriage transport operators (up to 10 vehicles).
5. ITR-5 Firms, LLPs & Associations
Applicable For: Partnership Firms, Limited Liability Partnerships (LLPs), Association of Persons (AOP), Body of Individuals (BOI), Artificial Juridical Persons (AJP), and business trusts.
6. ITR-6 Corporate Bodies
Applicable For: All registered companies (Private Limited, Public Limited, One Person Companies) other than companies claiming tax exemption under Section 11 (charitable or religious institutions).
7. ITR-7 Trusts & Special Entities
Applicable For: Entities required to furnish returns under Section 139(4A), 139(4B), 139(4C), or 139(4D), including charitable and religious trusts, political parties, scientific research institutions, universities, and colleges.
Master ITR Form Selection Matrix
| ITR Form | Eligible Taxpayer Type | Turnover / Income Limit | Key Inclusions |
|---|---|---|---|
| ITR-1 (Sahaj) | Resident Individuals (ROR) | Up to ₹50,00,000 | Salary, 1 House Property, Other Sources |
| ITR-2 | Individuals & HUFs (No PGBP) | No Limit | Capital Gains, Multiple Properties, Foreign Assets |
| ITR-3 | Individuals & HUFs (With PGBP) | No Limit | Business, Profession, F&O Trading, Firm Partners |
| ITR-4 (Sugam) | Residents, HUFs, Firms (Not LLP) | Up to ₹50,00,000 | Presumptive Business/Profession (44AD/44ADA/44AE) |
| ITR-5 | Firms, LLPs, AOPs, BOIs | No Limit | Entity tax return for non-corporate bodies |
| ITR-6 | All Companies | No Limit | Private, Public, and Foreign corporate entities |
| ITR-7 | Charitable Trusts & Political Bodies | No Limit | Entities under Section 139(4A) to (4D) |
How to Choose the Correct ITR Form?
Choosing the right form requires asking four straightforward questions:
- What is your legal entity? Individual, HUF, Firm, or Company?
- Do you have business or professional income? If yes, is it under presumptive taxation (ITR-4) or audited/regular books (ITR-3)?
- Do you have capital gains from shares or property? If yes, you cannot file ITR-1 or ITR-4; you must file ITR-2 or ITR-3.
- Do you own foreign assets or hold directorships? If yes, you must use ITR-2 or ITR-3.
Confused About Which ITR Form Applies to You?
Avoid defective notices and ensure complete tax compliance for FY 2025-26. Let our experienced chartered accountants handle your filing.