What is ITR and Who Should File? An ITR (Income Tax Return) is a form to declare your income and taxes. You should file if: Your income is above the basic exemption limit. You want to claim refunds (for excess TDS deducted). You need proof of income for bank loans, visa applications, or financial transactions.

. For individuals, regular filing helps build creditworthiness, which is essential for availing loans, securing visas, and entering business contracts.

It also enables taxpayers to claim refunds for excess taxes paid and ensures the carry-forward of losses for future setoffs.

Categories of ITR

The Income Tax Department notifies different ITR forms each year to suit various categories of taxpayers. Selecting the correct form is essential, as filing in an incorrect form may render the return defective.

For FY 2024–25 (AY 2025–26), the following forms are applicable to non-audit taxpayers, including individuals and small entities:

ITR-1 (Sahaj) – For Salaried Individuals

A salaried individual, as per the Income Tax Department, is a taxpayer whose income is earned from an employer in the form of salary, wages, allowances, perquisites, or pension and is chargeable under the head “Income from Salary.”

Who Can Use ITR-1?

ITR-1 can be used by individuals who:

• Are Resident Individuals (Not Ordinarily Resident)
• Have a total income up to ₹50 lakh
• Have income from: Salary or Pension, One House Property, Other Sources (bank interest, family pension), Agricultural income up to ₹5,000

Who Cannot Use ITR-1?

ITR-1 cannot be used by individuals who:

• Have total income exceeding ₹50 lakh
• Have income from more than one house property
• Have income under the head Capital Gains (including short-term gains or long-term gains u/s 112A exceeding ₹1.25 lakh)
• Are Directors in a company
• Have held any unlisted equity shares at any time during the previous year
• Have any asset (including financial interest in any entity) located outside India
• Have signing authority in any account located outside India
• Have income from any source outside India
• Have income from business or profession
• Have deferred tax on ESOPs(Employee Stock Options)
• Have income on which tax has been deducted u/s 194N
• Have any brought forward loss or loss to be carried forward under any head of income

ITR-2 – For Individuals/HUFs (No Business/Profession Income)

Individuals are natural persons who earn income from salary, pension, house property, capital gains, business/profession, or other sources and are taxed in their personal capacity.

HUFs (Hindu Undivided Families) are separate entities under income tax law consisting of all persons lineally descended from a common ancestor, including their wives and unmarried daughters.

An HUF can earn income from property, business, or other sources, and it is taxed as a distinct “person” under the Income Tax Act.

Who Can File:

• Individuals and Hindu Undivided Families (HUFs) who are not eligible to file ITR-1 (Sahaj)
• Taxpayers not having income from “Profits and Gains of Business or Profession”
• Taxpayers not having income in the nature of interest, salary, bonus, commission, or remuneration received from a partnership firm
• Cases where the income of another person (such as spouse, minor child, etc.) is required to be clubbed with the taxpayer’s income, provided the income to be clubbed falls under the eligible categories for ITR-2

Who Cannot File:

• Individuals and Hindu Undivided Families (HUFs) whose total income for the year includes income from “Profits and Gains of Business or Profession”, and
• Income is in the nature of interest, salary, bonus, commission, or remuneration received from a partnership firm

ITR-3 – For Individuals & HUFs With Business/Profession Income

Who Can File:

• Individuals and Hindu Undivided Families (HUFs) having income under the head Profits and Gains of Business or Profession
• Individuals and HUFs whose income is chargeable to tax under the head “Profits and gains of business or profession” received from a partnership firm.​

Who Cannot File:

• Those eligible for ITR-1, ITR-2, or ITR-4

ITR-4 (Sugam) – For Presumptive Income

Presumptive income, as per the Income Tax Department of India, refers to income that is calculated on a presumptive basis instead of maintaining detailed books of accounts.

Under the presumptive taxation scheme, the Income Tax Act allows certain taxpayers (small businesses, professionals, and transporters) to declare income at a prescribed rate of turnover or receipts, without the need to maintain regular accounts or undergo audits.

Who Can File:

ITR-4 can be filed by:

• Individuals, Hindu Undivided Families (HUFs), and Firms (other than LLPs) who are residents
• Those who have income from business or profession calculated on a presumptive basis
• Along with business income, they can also have salary or pension, income from one house property, income from other sources (such as bank interest, family pension, or dividend), and agricultural income up to ₹5,000

Who Cannot File:

You cannot use ITR-4 if you:

• Earn more than ₹50 lakh in a year
• Are a Director in a company
• Own more than one house property
• Have capital gains (profit from selling shares, property, etc.), including long-term gains above ₹1.25 lakh under Section 112A
• Have held unlisted company shares at any time during the year
• Own assets outside India or have foreign income
• Have authority to operate a bank account outside India
• Have deferred tax on ESOPs
• Have any brought forward loss or loss to be carried forward under any head of income
• .

ITR-5

Who Can file ITR-5?

ITR-5 is the Income Tax Return form applicable to: 

• Partnership firms
• Limited Liability Partnership (LLP) 
• Association Of Persons (AOP) 
• Body Of Individuals (BOI)
• Other similar entities

ITR-5

Who Can file ITR-5?

ITR-5 is the Income Tax Return form applicable to: 

• Partnership firms
• Limited Liability Partnership (LLP) 
• Association Of Persons (AOP) 
• Body Of Individuals (BOI)
• Other similar entities

Who Cannot file ITR-5?

• Entities other than individuals 
• HUFs 
• Companies
• Taxpayers eligible for filing ITR-7

·       ITR-6

·       Who Can file ITR-6?

• ITR-6 is the Income Tax Return form applicable to companies.

·       Who Cannot file ITR-6?

• Taxpayers those claiming exemption under Section 11: Income from property held for charitable or religious purposes.

Who Can file ITR-6?

ITR-6 is the Income Tax Return form applicable to companies.

Who Cannot file ITR-6?

Taxpayers those claiming exemption under Section 11: Income from property held for charitable or religious purposes.

ITR-7

ITR-7 is the Income Tax Return form applicable to persons (including companies) who are required to file returns under sections 139(4A), 139(4B), 139(4C), or 139(4D) of the Income Tax Act, primarily related to charitable, religious, and specified institutions.

• 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.

• Late Filing Fees
• A late filing fee is levied if the return is furnished after the specified due date. A fee of ₹5,000 is payable for returns filed after the due date. However, in cases where the total income does not exceed ₹5 lakh, the late fee is restricted to ₹1,000