Selecting the correct ITR form is one of the most important steps in filing your income tax return. Filing the wrong form renders your return defective under Section 139(9), which can result in the return being treated as invalid. Here is a comprehensive guide to all 7 ITR forms applicable for AY 2025-26.
Quick Selection Guide
ITR Form | Who Should Use It | Key Exclusions |
|---|---|---|
ITR-1 (Sahaj) | Resident individuals with salary/pension, one house property, other sources — total income up to ₹50 lakh | Not for directors, unlisted shareholders, foreign income, or lottery income |
ITR-2 | Individuals/HUFs with capital gains, foreign assets, more than one house property, or income > ₹50 lakh | Not for those with business or professional income |
ITR-3 | Individuals/HUFs with income from business or profession (including F&O traders) | N/A — most comprehensive individual form |
ITR-4 (Sugam) | Individuals/HUFs/Firms under presumptive taxation (44AD, 44ADA, 44AE) with income up to ₹50 lakh | Not for directors, foreign asset holders, or those with capital gains |
ITR-5 | Firms, LLPs, AOPs, BOIs, local authorities, cooperative societies | Not for individuals, HUFs, or companies |
ITR-6 | Companies other than those claiming exemption under Section 11 | Not for Section 11 exemption companies |
ITR-7 | Trusts, political parties, research associations, charitable institutions filing under Sections 139(4A) to 139(4F) | Not for regular businesses |
ITR-1 (Sahaj) — The Simplest Form
ITR-1 is for resident individuals with straightforward income profiles. You can use ITR-1 if your total income is up to ₹50 lakh from salary or pension, one house property (not brought forward loss), and other sources such as interest income. You cannot use ITR-1 if you are a director of a company, hold unlisted equity shares, have foreign income or assets, or have any business income including F&O.
ITR-2 — For Capital Gains and High-Income Individuals
ITR-2 is for individuals and HUFs who have capital gains (from shares, mutual funds, property, etc.), more than one house property, foreign income or assets, or income exceeding ₹50 lakh. This form is also required if you are a director of a company or hold unlisted equity shares but do not have business income.
ITR-3 — For Business and Professional Income
ITR-3 is the most comprehensive form for individuals and HUFs. It is mandatory if you have any income from business or profession — including freelance income, consultancy, trading (including F&O), or partnership firm income. ITR-3 is also used if you have all types of income that appear in ITR-1 and ITR-2.
ITR-4 (Sugam) — Presumptive Taxation
ITR-4 is for individuals, HUFs, and firms (excluding LLPs) who have opted for presumptive taxation under Sections 44AD (business), 44ADA (professionals), or 44AE (transporters). If you opt for 44AD and declare 6% or more of business receipts as income, you can use ITR-4 without maintaining detailed books. Total income must not exceed ₹50 lakh.
ITR-5 — For Firms, LLPs, and Other Entities
ITR-5 is filed by partnership firms, LLPs, associations of persons (AOPs), bodies of individuals (BOIs), local authorities, and cooperative societies. It is not used by companies, trusts, or individuals.
ITR-6 — For Companies
All companies registered under the Companies Act must file ITR-6, except those claiming exemption under Section 11 (charitable trusts). Filing is mandatory regardless of profit or loss, and a digital signature is required.
ITR-7 — For Trusts and Charitable Institutions
ITR-7 is filed by entities required to furnish returns under Sections 139(4A) to 139(4F) — including charitable trusts, religious trusts, political parties, research associations, universities, and news agencies.
Important: Do Not File the Wrong Form
The Income Tax Department's processing system automatically checks form eligibility. Filing the wrong ITR form results in a defective return notice under Section 139(9), requiring rectification within 15 days. If not rectified, the return is treated as not filed — with all associated penalties and loss of carry-forward benefits.
How PGA & Co. Can Help
At PGA & Co. Chartered Accountants, we file ITRs for individuals, HUFs, firms, LLPs, and companies across all 7 forms. Our team determines the correct form, computes income accurately, and ensures timely filing with all required disclosures.
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