Explained: The Income Tax Department has notified the ITR-1, ITR-3, ITR-4 and ITR-5 forms for the Assessment Year 2025-26 (FY 2024-25). In such a situation, the Income Tax Return (ITR) filing process is expected to start soon. The most important thing for taxpayers is to choose the correct ITR form, as the return can be rejected or a penalty can also be imposed if the wrong form is filled.
What is ITR form?
Income Tax Return (ITR) form is the medium through which taxpayers give information about their annual income, deduction and tax payment to the Income Tax Department. There is a separate ITR form for all kinds of income. Let us know which ITR form is for:
ITR-1 (spontaneous): for those who get salary
The Central Board of Direct Taxes (CBDT) has given great relief to salaried taxpayers, making the process of filing income tax returns easier. Now individuals who have long-term capital gains (LTCG) of up to ₹ 1.25 lakh in the financial year will be able to file their returns through ITR-1 form instead of complex ITR-2. In such a situation, the salary class will be very easy to fill the return.
Who can fill:
- Resident person (not HUF), whose total income is up to ₹ 50 lakh
- Income only salary, a house property and other sources (eg interest)
- Long -term capital gains up to ₹ 1.25 lakh from listed securities under section 112A
Who can’t fill:
- Those who have more than ₹ 1.25 lakh capital gains, foreign income/property or business income
- Shares trading, undeclared assets, or invested in unlisted shares
- Director in the company or who has invested in unlisted equity shares
ITR-2: High income and property/stocks to income
It can be filled by individual and HUF, whose income is from salary, more than one property, capital gains, foreign income or more than ₹ 10 lakh dividend. Those who have income from business or profession cannot fill this form.
ITR-3: For those who earn from business or profession
It can be filled by individual/HUF, which has business or profession. Such as freelancer, doctors, lawyers, trader etc. It can also be filled in partnership firms partner and F&O or Intrade Trading.
There have also been many important changes in Ay 2025-26 in ITR-3, which need to know about:
Different details of Capital Gain: Separate reports before and after July 23, 2024.
Share buyback loss: After 1 October 2024, you will be able to claim loses from Bayback only when there is a report in dividend ‘other sources’.
Net worth reporting limit increased: Now only with an asset-billability reports with an income of more than ₹ 1 crore.
Detailed description of deduction: Details of cuttings like section 80C, HRA will be sought.
TDS section code in schedule-tds: Complicated mention of concerned TDS section code (eg 194A, 194h etc.). Its purpose is to improve the traceability of tax credit.
ITR-4 (Sugam): For taxpayers with Principal Taxation Scheme
It can be filled by resident individual, HUF and firm (except LLP). It is also for taxpayers whose income comes under the Principal Scheme (44AD, 44ADA, 44AE). It can also fill it with an income of up to ₹ 50 lakh and a business with income up to ₹ 2 crore.
ITR-4 cannot be filled by NRI, director, or foreign income/assets.
ITR-5: Firm, LLP, AOP, BOI
It can be filled by partnership firms, lLPs, associations of persons (AOPS), Bodies of Individuals. Also, Artificial Juridical Persons i.e. ITR-5 for temple or religious institution, trust and university.
Individual taxpayers, companies or NRI (Non-Resident Indians) cannot be filled. ITR-5 is also not for those who have foreign income or property.
There have also been some important changes for Ay 2025-26 in ITR-5:
- Capital Gain Reporting: Transactions before and after 23 July 2024 will have to look different
- Los claim on share buyback: Applicable after 1 October 2024
- Separate section of cruise business: Provision for cruise business under section 44BBC
- Mandatory tDs code
ITR-6: for companies
ITR-6 Forms can fill companies, which do not take exemption from religious or charity institutions under Section 11. At the same time, companies obtaining exemption under individual taxpayers and Section 11 cannot fill it.
ITR-7: Trust, political parties, for educational institution
It is filled by charitable trusts, research institutes, colleges, universities. The same form is for political parties. It can fill it all institutions, whose income sections get discounts from 139 (4A) to 139 (4F).
Which ITR form is best for
| ITR Form | Best for whom |
| ITR-1 |
Salary whose income is simple and a minor capital gains. |
| ITR-2 |
Stock trader, investor, property owner. |
| ITR-3 |
Freelancer, professional, trader and business owners. |
| ITR-4 |
Professionals such as small traders, cab operators, doctors and designers. |
| ITR-5 |
They are not filing returns under LLPS (Limited Liberation Partnership) and firms which ITR-4. |
| ITR-6 |
Private/Public Limited Companies (Except NGO). |
| ITR-7 |
NGO, Institute of Education, Research Body. |
Important dates (for Ay 2025-26)
CBDT has notified ITR-1, ITR-3, ITR-4 and ITR-5 forms, but the process of filing income tax returns has not started yet. This process can begin this week. After its commencement, the last dates for filing returns are given below:
- Taxpayers without audit: 31 July 2025
- In audit cases: 31 October 2025
- Revised/Bilated Return: 31 December 2025
Also read: Old vs New Tax Regime: What is the difference between old and new tax regimen, who will be beneficial to choose?