Choosing the Right ITR Form for AY 2025‑26: Complete Guide

Filing your Income‑Tax Return (ITR) accurately is crucial to avoid notices, penalties, or delays. For Assessment Year (AY) 2025‑26, the Income‑tax Department has finalized six core ITR forms (ITR‑1 through ITR‑6). This guide helps you identify the perfect form based on your residency, income sources, gains, and entity type—ensuring a smooth e‑filing experience.

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Table of Contents

1. Why Choosing the Right ITR Form Matters

2. ITR 1 (SAHAJ): Simplest for Salaried Individuals

3. ITR 2: For Complex Income Without Business Profits

4. ITR 3: If You Have Business or Professional Income

5. ITR 4 (SUGAM): Presumptive Taxation Option

6. ITR 5: Non‑Company Entities (Firms, LLPs, AOPs)

7. ITR 6: Companies (Excluding Section 11 Charities)

8. Key Updates & Deadlines for AY 2025‑26

9. FAQs

10. Checklist Before You File

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Why Choosing the Right ITR Form Matters

• Compliance: Prevents mismatches with pre‑filled data and e‑filing errors.

• Accurate Tax Computation: Ensures you don’t under‑ or over‑report income, gains, or deductions.

• Penalty Avoidance: Selecting wrong form can trigger notices under Section 139(9).

• Smooth Refunds: Correct form → faster processing of refunds or refunds.

⚡ Pro Tip: Always review your Form 26AS and TDS certificates before selecting your ITR form to confirm income heads and tax credits.

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ITR 1 (SAHAJ): Simplest for Salaried Individuals

Who Can File:

• Resident individuals (not RNOR/NR)

• Total income ≤ ₹50 lakh

• Income from:

  • Salary/pension

  • One house property

  • Other sources (interest/dividends)

  • LTCG up to ₹1.25 lakh on equity/ELSS (Section 112A)

  • Agricultural income ≤ ₹5,000

Who Cannot File:

• Directors of companies

• Unlisted equity shareholders

• Foreign assets/income holders

• ESOP deferrals

• Carry‑forward losses

• Income > ₹50 lakh

<small>Learn more → Official ITR 1 Instructions</small>

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ITR 2: For Complex Income Without Business Profits

Who Can File:

• Individuals/HUFs (Resident, RNOR, NR)

• Income from:

  • Salary/pension

  • Multiple house properties

  • Capital gains (any amount)

  • Lottery/horse race winnings

  • Foreign assets/income

  • Agricultural income > ₹5,000

Key Use‑Case:

• You don’t have “Profit & Gains from Business or Profession,” but you have capital gains, foreign income, or multiple properties.

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ITR 3: If You Have Business or Professional Income

Who Can File:

• Individuals/HUFs with business or professional profits/losses

• Partners in firms

• Includes:

  • F&O / intraday trading

  • Cruise operations (Section 44BBC)

  • Unlisted shares

Ideal For:

• Doctors, lawyers, consultants, traders, or manufacturers not under presumptive schemes.

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ITR 4 : Presumptive Taxation Option

Who Can File:

• Resident individuals, HUFs, and firms (not LLPs) under presumptive schemes

• Total turnover ≤ ₹50 lakh (or ≤ ₹75 lakh for digital‑receipt professionals)

• Income from:

  • Business under Section 44AD/44AE

  • Professional under Section 44ADA

Also Covers:

• Salary/pension, one house property, other sources, LTCG ≤ ₹1.25 lakh, agri income ≤ ₹5,000.

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ITR 5: Non‑Company Entities (Firms, LLPs, AOPs, BOIs)

Who Can File:

• Firms, LLPs

• Associations of Persons (AOPs), Bodies of Individuals (BOIs)

• Co‑operative societies, business trusts, investment funds

Note: All non‑company legal entities fall under ITR 5, except charitable companies (Section 11).

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ITR 6: Companies (Excluding Section 11 Charities)

Who Can File:

• Domestic & foreign companies

• Excluding companies claiming exemption under Section 11/12 (charitable/religious)

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Key Updates & Deadlines for AY 2025‑26