What ITR are you supposed to file – Types of ITR Forms in 2025

As the Income Tax season approaches, taxpayers in India begin to ask themselves – Which ITR to submit? There are various forms of ITR that an individual can use and after selecting the appropriate form, the person is guaranteed of a simple filing process and adherence to the Income Tax Department. This manual includes all categories of ITR forms, their applicability, eligibility and answers your frequently asked questions, as per the latest rules applicable to the assessment year 2025-26.

What are ITR Forms and why do they have different types?

The Income Tax Return (ITR) forms are official documents a taxpayer uses to declare their income, assets, tax paid, and claims to the Indian Government. All the forms address a particular group of people depending on their source of income, the amount of income, and the type of taxpayer be it individuals, companies, or trusts.

By filing the right ITR, you will:

• Avoid warnings or fines by IT department
• Effortlessly claim the maximum tax refunds
• Have your books in order

What to Do to Choose ITR Form to File in 2025?

Choosing the correct ITR form depends on factors such as your income source, total annual income, category (Resident, NRI, Firm, or Company), and type of assets held.

What is Your Income?

• Salary, pension or interest alone
• Small trade or occupation
• The gains on shares or properties
• Overseas income/assets
• Winnings on lottery or horse racing

The source of your primary and other income directly influences the decision of ITR form.

Are You an Individual, Hindu Undivided Family (HUF), or a Company?

Status matters. Individual taxpayers and HUFs use ITR-1 and ITR-2 whereas companies, LLPs and firms have their own forms.

Did you own foreign assets, foreign income in 2024-25?

Foreign assets require fuller disclosures and using detailed forms (e.g., ITR-2 or ITR-3).

Did you realise? Filing the incorrect ITR form can lead to a declaration of defect in your return and may require re-filing at the risk of late refunds and even scrutiny.

What are the ITR Forms and Who Uses What?

ITR 1 – Who is to file Sahaj Form?

Eligibility:
Applicable to resident individuals whose total annual income does not exceed ₹50 lakh and earn income only through:

• Wage or pension
• Renting one house property
• Other sources (interest from FD)
• Up to ₹5000 agricultural income

Not Eligible:

• RNOR or Non-residents
• Those with capital gains, investments abroad, or multiple properties
• Earnings from trade or occupation
• Directors or holders of unlisted shares

Example: Ramesh, a school teacher with ₹30 lakh salary, interest from deposits, and rent from his sole house files ITR 1.

Pros:

• Easy to complete
• Quick refunds if filed online
• Low risk of inspection

Cons:

• Limited eligibility
• Only for simple financial cases

People Ask:
Will I be able to claim HRA and file ITR 1? – Yes, if other conditions are met.

ITR 2 – Who uses it?

Applicable for:
Individuals/HUFs with income from:

• Salary/pension
• More than one house property
• Capital gains (stocks, property, mutual funds)
• Foreign income or assets
• Agriculture income > ₹5000

Excludes:
Business or professional income.

Example: Shalini, an NRI with Dubai salary and Indian mutual fund gains, files ITR 2.

Pros:

• Handles complex income situations
• Covers capital gains and foreign assets

Cons:

• More detailed form
• Needs documentation

People Ask:
Does an NRI have to file ITR 2? – Yes, in case of capital gains, multiple properties, or foreign assets.

ITR 3 – When to pick it?

Required for:

• Individuals/HUFs with business or professional income (not presumptive)
• Partners in a firm
• All incomes under ITR 2 plus business incomes

Example: Mehul, owner of a design firm and partner in another company, files ITR 3.

Pros:

• Captures all streams of income
• Essential for self-employed professionals

Cons:

• Requires maintained accounts
• CA audit if applicable

People Ask:
Is ITR 3 compulsory for partners? – Yes.

ITR 4 (Sugam) – Who uses it?

Applicable for:

• Individuals, HUFs, Firms (not LLP)
• Presumptive taxation under Section 44AD, 44ADA, 44AE
• Income up to ₹50 lakh (profession) or ₹2 crore (business)

Example: Priya, running a kirana store with turnover under ₹1 crore, uses ITR 4.

Pros:

• Easy for small businesses
• Less documentation

Cons:

• Profit assumption may inflate income
• Not for foreign assets or higher income

People Ask:
Does ITR 4 require audit in presumptive taxation? – Not below turnover limits.

ITR 5, ITR 6, ITR 7

• ITR 5: For Firms (including LLPs), Associations, BOIs
• ITR 6: For Companies (except those exempt under Section 11)
• ITR 7: For Trusts, political parties, institutions with exemptions

How to Select Correct ITR Form – Step-by-Step

1. Determine residential status (Resident, Non-resident, RNOR)
2. List income sources (salary, business, capital gains, house property, others)
3. Identify taxpayer category (Individual, HUF, Firm, Company, Trust)
4. Check for foreign assets, directorship, etc.
5. Verify eligibility on the Income Tax portal

Highlights – All ITR Forms at a Glance

• Paperless filing: E-filing mandatory for most forms
• Auto-filled data: Salary, TDS, interest auto-populated
• Fast refunds: If correct form used
• Automated validation: Many online platforms check form choice automatically

Comparison Table: Eligibility Snapshot

Pros and Cons of Correct ITR Selection

Advantages:

• Faster processing, refunds
• Reduced chances of fines/audits
• Maximum deductions claimed

Challenges:

• Complex cases need expert help
• Frequent rule changes
• Risk of wrong disclosure in self-filing

Quick Recap (TL;DR)

• Sources of income, residential status, gross income, and taxpayer category decide your ITR form.
• ITR 1: Simple salaried
• ITR 2: Capital gains, foreign income/assets
• ITR 3: Business/profession
• ITR 4: Presumptive scheme
• ITR 5, 6, 7: Firms, companies, trusts
• Wrong form = delays, penalties, defective filing

People Also Ask

Q: What are the forms for salaried employees?
A: ITR 1 or ITR 2, depending on income type.

Q: Can I file on my own?
A: Yes, for simple cases; complex ones need expert help.

Q: Does ITR 1 apply to three house properties?
A: No, only for one house property.

Q: What if I pick the wrong ITR?
A: It may be flagged as defective; you’ll need to correct it.

Q: Any changes in 2025?
A: No new forms, but more disclosures for foreign/digital assets.

Q: Can I file ITR on mobile?
A: Yes, via official and aggregator apps.

Sources

• Income Tax Department of India – Official ITR Form Guide, 2025
• Budget 2025 Updates – Ministry of Finance
• Online Tax Filing Platforms – Review