The financial year 2024-25 is about to end. Therefore, it is important to understand which ITR form is right for you. There are two forms, ITR-1 (Sahaj) and ITR-4 (Sugam). But they have their own rules. They should be used after understanding them properly. Otherwise, mistakes can happen.

ITR-1 (Sahaj)

ITR-1 (Sahaj) is for those who live in India. Also, whose annual income is less than Rs 50 lakh. If your income is from easy sources like salary, pension, property of one house (which does not have old loss), or interest. In such a case, this form is for you. You can also add the income of your wife or small child in it. Provided their income is also from the same sources. But some people cannot fill ITR-1. Like if you live outside India. Are the director of a company. Apart from this, if you have property abroad. If you have income from foreign accounts or lottery, then also ITR-1 will not work.

ITR-4 (Sugam)

ITR-4 (Sugam) is for those who do small business or are professionals. Also, their income is up to 50 lakhs. This form can be used even when your income is calculated in an easy way. But if your income is audited, then instead of ITR-4, you can choose ITR-3 or ITR-5. ITR-1 and ITR-4 make paying tax easy but look at their rules carefully. Choose the right form according to your income and situation so that there is no mistake while paying tax. If you do not understand, then consult an expert.

When will Form 16 come?

It is generally mandatory to issue Form 16 by 31 May. This enables employees to file their Income Tax Return before the deadline. However, in respect of the financial year 2024-25, the last date for issuing Form 16 has been fixed as 15 June 2025. This document certifies the employee’s income, tax deduction and other related details. If your employer has deducted TDS from your income between 24 April 2024 and 25 March 2025, then you have to ensure that you receive Form 16 by 15 June 2025.

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Apart from this, the CBDT had also made some changes in the ITR-1 form last February with regard to the disclosures to be made under section 1(139). Under this section, people with annual taxable income of less than 2.5 lakhs voluntarily submit the ITR form. Under the new change, such individuals will not be required to furnish further details in their ITR forms even if the value of their fixed deposits has crossed Rs 1 crore.

ITR Form for FY 2022-23

Most taxpayers file ITR-1 and ITR-4 forms to report their income. These forms cater to the needs of most small and medium taxpayers.

ITR-1 can be filled by a person whose annual income does not exceed 50 lakhs, whose income comes through salary, owns a house and has other sources of income including interest. On the other hand, ITR-4 can be filled by individuals, Hindu Undivided Families and firms, whose annual income does not exceed 50 lakhs and this income comes from business or profession.

ITR-2 is filed by a person whose income comes from residential property and whose annual income is more than Rs 50 lakh. ITR-3 is filed by professionals. While ITR-5 and ITR-6 are used by LLPs and Businesses respectively.

The Income Tax Department has not released the online ITR forms yet, but it has released the offline ITR-1 and ITR-4 forms for the assessment year 2023-24.

In the offline mode, taxpayers first download the ITR form and then fill it and upload it on the income tax department’s portal. On the other hand, in the online form, taxpayers can fill their income related information directly on the income tax website itself.

Who is eligible to file ITR-4 form?

ITR-4 can be filed by individuals, Hindu Undivided Families and firms (other than LLPs) who have-

– Income should not exceed ₹ 50 lakh in a financial year

Income from business and profession, which is computed on the basis of an estimate under section 44AD, 44ADA or 44AE

Income from salary/pension, one house, income from agriculture (up to Rs.5,000):

Income from salary/pension, one house property, agricultural income (up to ₹ 5000/-)

Other sources (does not include income from lotteries and horse races)

Interest from savings account

– Interest on Deposit (Bank/Post Office/Co-operative Society)

– Interest from income tax refund

– Family Pension

Interest received on enhanced compensation

– Any other interest income (eg, interest from unsecured loan etc.)

What are the documents required to file ITR-4?

You need to keep the following documents ready for filing ITR-4:

– Form 16

– Form 26AS and AIS

– Form 16A

– Bank statement

– Housing Loan Interest Certificate

– Donation receipt

– Rent Agreement

– rent receipts

– Payment receipt of premium for any investment – LIC, ULIP etc.

You can also visit the official website of Income Tax Department (https://www.incometax.gov.in/iec/foportal/help/e-filing-itr4-form-sugam-faq) for more details.

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