What is ITR? Which ITR should I file for FY 2025-26, And who is eligible for ITR.

What is ITR?

Income Tax Return (ITR) is a form that used by tax payers to report annual their annual income, expenses, investments and taxes paid to the income tax department. Its’s a crucial document that ensures that the government can asses and collect taxes accurately.

Types of ITR:

There are seven different types of ITR forms availvable for Indian taxpayers. Like ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 and ITR-7. Every taxpayer should file his ITR on or before the specified due date.

Which ITR to File?

Following are the list of seven ITR(income tax return) Forms. And decide which type of ITR forms you need to file.

1. ITR-1 or SAHAJ

This return form is for individuals who fall under this following categories-

Who earn from salary and pension
Total income not exceeding from Rs. 50 lacks
Agricultural income upto Rs. 5,000
Income from other sources ( excluding winning from lottery and income from horse race.)

ITR-1 or SAHAJ is not applicable in case:

Total income is more than Rs. 50 Lakhs
Agricultural income more than Rs. 5,000
Earn income from business or profession
If you are director in a company
If you earn capital gains
If you own foreign asset or foreign income
If you holding stakes in unlisted entities

2. ITR-2

ITR-2 is for the individuals and Hindu Undivided Family(HUF). Who fall under this category:

Total income more than Rs. 50 lakhs
Income from salary and pension
Income from house property
Income from capital gains
Having any foreign asset and foreign income
If you are a individual director of a company
Income from capital gains
Agriculture income more than Rs. 5,000
If you holding stakes in unlisted entities
Income received from other sources (including winning from lottery and income from horse race)

ITR-2 not applicable in case:

Income from business or profession
Any one who receives commission, salary, bonus or interest from a partnership form

3. ITR-3

Form ITR-3 is to be used by and individual and Hindu Undivided Family(HUF), Who has income from proprietary business or is carrying on profession and fall under the following category:

Income from business or profession
Income received from being a partner in a firm
The return may include income from house property, salary, pension and income from other sources
If you are individual director in a company
If you invested in unlisted equity shares

ITR-3 not applicable in case:

Individuals or Hindu Undivided Family without commercial or professional income.

4. ITR-4 or SUGAM

Form ITR-4 is applicable for Individuals and HUFs, Partnership Firm (other than LLPs) who fall under the following category:

Income not exceeding from Rs. 50 lakhs
Business income as per the presumptive income scheme under section 44AD or 44AE
Professional income presumptive income under section 44ADA
Income from one house property
Income from salary or pension
Income from other sources (excluding income from lottery and horse race)

ITR-4 not applicable in case:

Total income exceeds from Rs. 50 lakhs
If you have income from more than one property
If you have income from any sources outside India
If you have foreign income or asset
If you are a director in a company
If you had invested in equity shares that are not listed

5. ITR-5

Form ITR-5 is applicable for:

Firms
Limited liability partnership (LLPs)
Association of person (AOPs)
Body of Individuals (BOIs)
Estate of insolvent
Artificial juridical person (AJP)
Estate of deceased
Business trust and Investment funds (not individual citizens)

6. ITR-6

The form ITR-6 is for companies that do not claim exception under Section 11 (income from property held for charitable or religious purposes)
ITR-6 can be filled by taxpayers electronically only

7. ITR-7

The form ITR-7 is for person or companies to filling their return under the below section of the Income Tax Act, 1961:

Section 139(4A)- For income from property held under a trust for charitable religious purposes.
Section 139(4B)- For Political parties that are required to file a return of income
Section 139(4C)-For Institutions, news agencies and establishment, educational institution, think tanks, and agencies involved in scientific research, hospital or any medical institution
Section 139(4D)- For universities, colleges, and institutions that are not required to file tax returns of income and loss under any other provision in Section 139.
Section 139(4E)- For every business trust that is not required to furnish a return of income or loss under any other provision of this section
Section 13(4F)- For every investment fund referred to in Section 115UB, which is not required to furnish a return of income or loss under any other provision of this section.

What is ITR? Who Should File It and Which ITR Form is Right for You in FY 2025-26?