ITR forms 1, 2, 3, 4 and 5 notified: Check which tax form applies to you

Jyoti — Tue, 06 May 2025 06:04:34 +0000

Explained: Income tax return forms from ITR-1 to ITR-7 are for different taxpayers. Know which taxpayer should file return in which form, what changes have been made in the new forms, and when is the last date for filing ITR. When is the return due.

The Income Tax Department has notified ITR-1, ITR-3, ITR-4 and ITR-5 forms for 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, because filling the wrong form may result in rejection of the return or even a penalty may be imposed.

What is ITR form?

Income Tax Return (ITR) form is the medium through which taxpayers give information about their annual income, deductions and tax payment to the Income Tax Department. There is a different ITR form for every type of income. Let us know which ITR form is for what:

ITR-1 (Sahaj): For salaried persons

By simplifying the process of filing income tax returns, the Central Board of Direct Taxes (CBDT) has given a big relief to salaried taxpayers. Now individuals who have long term capital gains (LTCG) up to ₹ 1.25 lakh in a financial year will be able to file their returns through ITR-1 form instead of the complex ITR-2. In such a situation, it will be very easy for the salaried class to file returns.

Who can fill it out:

Resident individuals (not HUFs) whose total income is up to ₹50 lakh
Income only from salary, one house property and other sources (like interest)
Long term capital gains up to ₹1.25 lakh from listed securities under section 112A

Who cannot fill out:

Those having capital gains, foreign income/assets or business income of more than ₹1.25 lakh
Trading of shares, undeclared assets, or investments in unlisted shares
Directors in a company or who have invested in unlisted equity shares

ITR-2: For those with high income and income from property/stocks

It can be filled by individuals and HUFs whose income is from salary, more than one property, capital gains, foreign income or dividends of more than ₹ 10 lakh. Those whose income is from business or profession cannot fill this form.

ITR-3: For those earning from business or profession

It can be filled by individuals/HUFs who have a business or profession. Such as freelancers, doctors, lawyers, traders etc. It can also be filled by partners in a partnership firm and those doing F&O or intraday trading.

There have also been many important changes in ITR-3 in AY 2025-26, which are important to know about:

Separate statement of capital gains: Transactions before and after July 23, 2024 to be reported separately.

Share buyback loss: After October 1, 2024, losses incurred on buyback can be claimed only if the dividend is reported under ‘other sources’.

Net worth reporting limit increased: Now only those with income more than ₹1 crore will report asset-liability.

Detailed breakup of deductions: Details of deductions like Section 80C, HRA etc. will be asked.

TDS Section Code in Schedule-TDS: Mandatory to clearly mention the relevant TDS Section Code (e.g. 194A, 194H etc.). This is aimed at improving the traceability of tax credits.

ITR-4 (Sugam): For taxpayers with presumptive taxation scheme

It can be filled by resident individuals, HUFs and firms (except LLPs). It is also for taxpayers whose income falls under the presumptive scheme (44AD, 44ADA, 44AE). It can also be filled by professionals with income up to ₹50 lakh and businesses with income up to ₹2 crore.

ITR-4 cannot be filed by NRIs, directors, or those having foreign income/assets.

ITR-5: For Firms, LLP, AOP, BOI

It can be filled by Partnership Firms, LLPs, Associations of Persons (AOPs), Bodies of Individuals. Also, ITR-5 is only for Artificial Juridical Persons i.e. temples or religious institutions, trusts and universities.

It cannot be filled by individual taxpayers, companies or NRIs (Non-Resident Indians). ITR-5 is also not for those who have foreign income or assets.

There have been some important changes in ITR-5 also for AY 2025-26:

Capital gains reporting: Transactions before and after July 23, 2024 need to be shown separately
Loss claim on share buyback: Applicable after October 1, 2024
Separate section for cruise business: Provision for cruise business under section 44BBC
Mandatory TDS code

ITR-6: For companies

ITR-6 form can be filled by those companies which do not take exemption from religious or charitable institutions under Section 11. However, individual taxpayers and companies getting exemption under Section 11 cannot fill it.

ITR-7: For trusts, political parties, educational institutions

It is filled by charitable trusts, research institutions, colleges, universities. The same form is applicable for political parties as well. It can be filled by all those organisations whose income is exempted under sections 139(4A) to 139(4F).

Which ITR form is best for whom?

ITR Forms	Best for whom
ITR-1	Salaried people with simple income and minor capital gains.
ITR-2	Stock trader, investor, property owner.
ITR-3	Freelancers, Professionals, Traders and Business Owners.
ITR-4	Small businessmen, cab operators, professionals like doctors and designers.
ITR-5	Those LLPs (Limited Liability Partnerships) and firms who are not filing returns under ITR-4.
ITR-6	Private/Public Limited Companies (Except NGOs).
ITR-7	NGOs, educational institutions, research bodies.

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 may start this week. Below are the last dates for filing returns after its start:

Non-audited taxpayers: July 31, 2025
In audit cases: October 31, 2025
Revised/Belated Return: December 31, 2025

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