Types of Income Tax Returns (ITR) Forms in India

What are ITR Forms?

An ITR form is an Income-tax return form that is used by a taxpayer, to report his income and calculate tax liability for a financial year. In India, a financial year is considered from April 1 to March 31 of the next year. The filling of the form must be completed within the due date of each financial year. There are seven different types of ITR forms, ITR-1 to ITR-7. The type of form that needs to be filled out is determined by the source of income, the amount of income earned in the financial year, and the category of the taxpayer¹. The form required to be filled by a taxpayer depends on the nature and sources of his income as well as his tax status. There are different forms for different classes of taxpayers, such as individuals, businesses and HUFs, i.e. Hindu Undivided Families. While filing ITR, a taxpayer needs to provide details like income, deductions, tax payments and tax exemptions applicable.

In this blog, you will gain knowledge about different types of ITR forms as prescribed under Income-tax Act.

What are the Types of ITR Forms?

According to the Income Tax Act of 1961, every taxpayer in India must file their ITR using one of the seven ITR forms. Each form is used for a different category of taxpayer and the type of income earned by them. Now, choosing the right form is important; otherwise, it may lead to rejection of the filing of the tax return or other compliance issues.

The choice of the ITR form depends on several factors:

• Source of income
• Level of income
• Residential status of the taxpayer
• Ownership of foreign assets
• Directorship in a company

Let us now understand the seven types of ITR forms below:

ITR 1 –

This form is also known as SAHAJ and is the most basic ITR form applicable to a resident individual with an income of upto ₹ 50 lakhs.

Applicability - This form is applicable to any resident individual having a total income from any of the following sources,

• salary or pension,
• one house property (but excluding any case where a loss has been brought forward or is to be carried forward),
• any other sources except for lottery winnings and income from horse racing.
• Agricultural income up to Rs 5000

Remember that if the income of a spouse or a minor child or any other person is added to the income of the taxpayer to calculate total income, all income sources should fall into one of the above categories.

Non-applicability - ITR 1 cannot be used to file returns if an individual or a taxpayer falls in any of the following categories, among others.

• He is a Resident Not Ordinarily Resident (RNOR), and Non-Resident Indian (NRI)
• He is a director of a company
• His total income is more than ₹ 50 lakhs
• He has income from multiple house properties
• He has held equity shares that were unlisted during the previous financial year
• He has signing authority in an account outside India.
• Tax deducted on withdrawal of cash under Section 194N.
• The tax has been deferred on ESOP allotted by an eligible start-up.
• If he is assessable in respect of income of another person in respect of which tax is deducted in the hands of the other person
   

ITR 2 –

This form is applicable to individuals and HUFs, i.e. Hindu Undivided Families, who have income sources other than profit or gain from a profession or business.

Applicability - The ITR 2 is applicable for individuals not eligible for ITR 1 and whose income is

• from a source such as property, capital gains and other sources such as foreign income, lottery winnings, horse racing etc.
• More than ₹ 50 lakhs.

Non-applicability - The form is not applicable if

• the total income for a financial year includes income from a business or profession.
   

ITR 3 –

This form is applicable to individuals and HUFs who have income under the heads ‘profits or gains of a business or profession in the nature of interest, salary, bonus, commission or remuneration received from a partnership firm. The return may include income from House property, Salary/Pension and Income from other sources.

Applicability - If the assessee is not eligible to file ITR 1, ITR 2 and ITR 4.

Non-applicability - The ITR 3 is not applicable to

• any person other than an individual or HUF.
• Any individual or HUF not having income from business or profession.
   

ITR 4 –

This form is also known as SUGAM and is applicable to individuals, HUFs and partnership firms. Applicability - The form is applicable if the individual/HUFs/partnership firms have

• Opted for the presumptive taxation scheme of section 44AD/44ADA/ 44AE of the Income Tax Act.
• Income not more than ₹ 50 lakhs in the financial year.
• Income from salary/pension, one house property.
• Income from other sources, excluding lottery winnings or horse racing.

Non-applicability - The form is not applicable if any of the above eligibility condition is not met. There are 16 more conditions listed by the Income Tax Department. Listed below are few of these:

• The assessee or the taxpayer is a director of a company
• The assessee has any assets (including financial interest in any entity) located outside India
• The assesse has signing authority in any account located outside India
• The assessee holds any unlisted equity
• The assessee has deferred income tax on ESOP, etc.
• The assesse has brought forward loss or loss to be carried forward under any head of income
   

ITR 5 –

Applicability - This form is applicable to any firm, AOP, LLP, artificial juridical person, BOI, local authority Private Discretionary trust, cooperative society, a society registered under the Society Registration Act, 1860, the estate of a diseased person or insolvent, business trust and investment fund.

Non-applicability - ITR 5 is not applicable if a taxpayer files a return of income under sections 139(4A), 139 (4B), 139 (4C), or 139(4D), which includes trusts, institutions, political parties, colleges, persons filing form ITR7 etc.

ITR 6 –

Applicability -This form is applicable to any company other than the one claiming exemption u/s 11 of Income Tax Act,1961. Non-applicability -This form is not applicable to companies claiming exemption u/s 11, which includes charitable or religious trusts.

ITR 7¹ –

ITR-7 is the Income Tax Return form for individuals (including corporations) who file returns under sections 139(4A), 139(4B), 139(4C), or 139(4D) of the Income Tax Act. This form is mostly about charitable, religious, and designated institutions. Let us understand these sections below in detail:

1. Every individual who receives income from property held in the name of a trust or from any other legal obligations that are entirely or partially used for charity or religious purposes is obligated to make a return under section 139(4A).
2. A political party must file ITR under section 139(4B) if its total income, excluding the provisions of section 139A, exceeds the maximum amount exempted from income tax.
3. The following entities must file a return under section 139(4C):
   • Scientific research associations;
   • news agencies;
   • associations or institutions mentioned in section 10(23A);
   • institutions mentioned in section 10(23B);
   • funds, universities, or other educational institutions;
   • hospitals or other medical facilities.

• All the universities, colleges, or other institutions that are exempt from providing a return of income or loss under any other provision of this section must file ITR under section 139(4D).
• Every business trust that is not obligated to provide a report of income or loss under any other provisions of this section must file a return under section 139(4E).
• Any investment fund mentioned in section 115UB is required to file a return under section 139(4F).
   

Why should one file ITR?

 An individual is compulsorily required to file ITR if any of the following conditions are applicable.

• If an assessee’s annual income is more than the lowest income tax slab as per his age. For an assessee below 60 years, the exemption limit is ₹ 2.5 lakhs. For an assessee between 60 and 80 years, it is ₹ 3 lakhs, and for an assessee above 80 years, it is ₹ 5 lakhs.
• If the assessee wants to claim an income tax refund.
• If the assessee has earned from investments in foreign assets during the financial year.
• If the assessee wants to carry forward losses to the next financial year

However, there are certain conditions when an assessee is compulsorily required to file ITR even if his income is below the basic exemption limit. Some of the conditions where the taxpayer has to file ITR are as follows,

• He has deposited an amount of more than ₹ 1 crore in one or more current bank accounts.
• He has spent an amount of more than ₹ 2 lakhs on foreign travel for himself or any other individual.
• He has an electricity bill of more than ₹ 1 lakh.
   

 How to Select the Right ITR Form?²

ITR filing is very crucial, and one must ensure to fill the right form for acceptance of the form and compliance with the Income Tax department. The following are the factors that help you to select the right ITR form:

Step-by-step guide based on income source

It is important to identify your income sources before filling up the form. You will have to calculate your total income and check your residential status. According to the above criteria, you will then have to match your profile with the correct form from the list of types of ITR forms.

Importance of cross-checking eligibility criteria

You must verify the type of ITR form according to your eligibility. An incorrect form may lead to rejection of the form, or you may be charged a penalty, and also be an overall delay in the process of ITR. Cross-checking ensures that you are filing the right type in the ITR form, hence saving time and avoiding unnecessary complications.

Reference to the Income Tax Department notification

It is important to keep yourself updated about the notifications issued by the Income Tax Department. This helps you to choose the right ITR form for yourself, especially when there are changes in income thresholds, deductions, etc. Staying informed helps you to avoid errors and ensures compliance with current and updated regulations.

Step-by-Step Guide to Filing Your Income Tax Return (ITR)

Filing the right ITR form is important. If you follow the simple steps mentioned below, then filing your income tax return form will not be a problem. These simple steps will ensure an accurate and hassle-free filing process:

Step 1: Visit the Income Tax E-Filing Portal

Go to the official web page for e-filing of income tax.is is the government-run website where individuals and businesses can submit their taxes, obtain tax services, and receive notifications.

Step 2: Log in or Register on the Portal

Use your PAN, password, and captcha code to log in if you have already registered. If you are a first-time user, then on the home page, choose "Register Yourself" and register by providing your name, date of birth, PAN, and contact information.

Step 3: Select the Appropriate ITR Form

Choose the correct ITR form type depending on your eligibility, category, and income sources. For example, individuals having company income should opt for ITR-3 or ITR-4, while salaried individuals can opt for ITR-1. Evaluate your profile carefully before selecting the form.

Step 4: Fill in Your Income and Deduction Details

Input details of your capital gains, residential property, income from salary, and other sources, keeping in mind that you can reduce your taxable income by claiming deductions under sections like 80C, 80D, and so on. Ensure that all fields are filled in correctly as per your documents.

Step 5: Review, Verify, and Submit Your ITR

Verify the information thoroughly before filing. For your convenience, the portal also offers Form 26AS, or pre-populated data from previous filings. Once you're satisfied, file your return.

Step 6: Complete the E-Verification of Your Return

You have to verify your ITR after filing it. You can E-Verify your return in one of three ways: through net banking, Aadhaar OTP, or sending a signed hard copy to the Central Processing Centre. Your return will not be processed unless it is verified.

Latest Updates on ITR Forms (AY 2025-26)

The following are the latest updates on the ITR Forms:

Enhanced ITR-1 and ITR-4 Eligibility

Where there are no carry-forward capital losses, taxpayers with long-term capital gains (LTCG) from listed equity shares and equity mutual funds up to ₹1.25 lakh under Section 112A are now eligible to file ITR-1 and ITR-4.

Aadhaar Number Mandatory for Filing

The 12-digit Aadhaar number would be acceptable for filing returns.

Form 10-IEA Introduction

Before filing their return, small business entities that wish to opt out of the new tax regime should file Form 10-IEA.  A schedule to confirm filing is now attached to ITR-4.

Detailed Reporting on Capital Gains

Capital gains on transfers prior to, on, or after July 23, 2024, have to be separately reported on ITR forms with the correct tax rates and rules of indexation.

Enhanced Reporting of TDS

On the ITR forms, taxpayers will have to mention, against each income source from which the tax was deducted, under which TDS section it was deducted.

Updated Standard Deduction and Tax Slabs

A flat deduction of ₹75,000 is currently offered under the new regime, from ₹50,000 in the previous year.  The ₹50,000 standard deduction continues to apply under the old tax regime.

Deadline Extension

The original July 31 deadline for submission of ITRs for AY 2025–2026 has been advanced to September 16, 2025.

Make Tax Planning Easier with an Income Tax Calculator⁴

Effective financial management helps in sensible tax planning, which can be aided by an income tax calculator. Depending on your income, the tax slabs in the new or old tax regime, deductions, and exemptions, it estimates your tax liability. You can obtain an instant summary of your tax bill or potential savings when you fill in variables like your income, capital gains, property income, and eligible deductions.

In addition, you can use an income tax calculator to:

• Plan your investments for the sections like 80C, 80D, etc. to decrease taxable income
• Compare tax liabilities under various tax regimes
• Avoid shocks at the time of filing your return
• Make decisions about your savings and investments

With its latest features for your current financial year, it is up to date with tax laws and tax deadlines.

Key Takeaways

• Every Indian taxpayer—whether an individual, HUF, corporation, or firm—is required to file an Income Tax Return (ITR) at the end of the financial year, to report income, claim refunds, and adhere to tax law.
• There are seven ITR forms, from Forms ITR-1 to ITR-7, depending on the income specific to the income tax payer, the amount of income, residential status, foreign assets, and professional activity.
• Before choosing the form, the taxpayer must fully ascertain their eligibility, based on their investment, residence, and sources of income. Using the incorrect form may result in penalties, delays, or rejection.
• Read the government notifications and use the tools available to the taxpayer, specifically tax calculators, for proper filing.
   

Conclusion

An ITR form is an income-tax return form used by taxpayers to report their income and calculate their tax liability for the fiscal year. The only guarantee of an easy and seamless filing is knowing which of the ITR forms to choose for each taxpayer and revenue.  You can easily avoid missing a deadline, penalties, and making a mistake by double-checking eligibility and being up-to-date on the latest tax releases.  By using an ITR form that's appropriate for your investment(s), residency status, and income type, you are in good shape to manage your finances and fulfil your legal obligation.  If you have any uncertainty, it can be helpful to talk with a tax professional and/or to leverage an income tax calculator.  Simplifying the process can also provide some confidence during tax season.

 FAQs

1. Do I need to attach any supporting documents with the ITR forms?

   ITR forms are attachment-less forms, and therefore no document is to be attached along with ITR forms. However, a taxpayer should retain these documents and produce the same if demanded by tax authorities for assessment or inquiry.

   
   

2. Which ITR form should be used by an agent?

   An insurance agent is eligible to use ITR 3 as he receives a commission from the insurance company.

   
   

3. How can I file a return of income?

   Return of income can be filed manually as well as electronically. You can file the return in hard copy at the local office of the income tax department. To file the return electronically, visit the official income tax website https://www.incometax.gov.in.

   
   

4. What is the difference between e-filing and e-payment?

   E-payment is the electronic payment of tax using net banking or debit/credit card, while e-filing is the process of furnishing the return of income electronically.

   
   

5. What are the important points to remember while filing ITR?

   Always file your return before the due date. Identify the correct return form applicable in your case. Carefully provide all the information in the ITR form. Use an income tax calculator to confirm the calculation of total income, deductions, interest, tax liability, refunds etc.

   
   

6. What are the ITR forms used by firms and companies?

   Firms or companies use ITR 5, ITR 6 and ITR 7 to file tax returns.

   
   

7. How many types of ITR forms are available for individuals?

   There are 4 types named ITR 1, ITR 2, ITR 3, ITR 4 available for individuals⁴.

   
   

8. What is the password to open ITR-V?

   The password should be a combination of PAN Card number and date of birth⁵.

   
   

9. How many times can the revised return be filed

   Return can be revised any number of times before 3 months of completion of assessment year or before the completion of assessment of the return, whichever is earlier⁶.

   
   

10. How can I calculate my income tax liability before filing the return?

    You can use an income tax calculator, found on the Income Tax Department website, to calculate the amount of tax that you owe. Fill in your income, deductions, and exemptions to arrive at an estimate of the tax paid or refundable.

    
    

11. What are the consequences of filing the wrong ITR form?

    If you submit the wrong ITR form, the tax department may reject your return, delay the processing of your return, impose fines, and even send you notices. You would want to select the right form to avoid compliance issues.

    
    

12. Can a business owner file ITR-1?

    A business owner cannot use the ITR-1 form. The ITR-1 is only for salaried people or retirees earning minimal from any of their company and professional income (annual income above 50 lakhs). Business income requires the ITR-3 or ITR-4 forms.

    
    

Sources:

1. https://cleartax.in/s/which-itr-to-file
2. https://cleartax.in/s/itr
3. https://cleartax.in/s/changes-in-new-itr-forms
4. https://cleartax.in/paytax/taxcalculator