Which ITR Form Should You File in FY 2025-26? | Types of ITR Forms Explained

What Are Income Tax Return (ITR) Forms?

ITR is a prescribed form through which you report the details of your income earned, deductions claimed, and taxes paid in a financial year to the Income Tax Department. It also allows you to carry forward the losses and claim a refund from the Income Tax Department.

The department has notified seven various form types prescribed for different categories of taxpayers (individual, HUF, company, LLP, Partnership firms, etc). The department has notified 7 different forms, i.e., ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 & ITR-7, till date. Which ITR form to file depends on the taxpayer’s status, nature of income, residential status in India, etc.

File your ITR with the Tax2win portal, which is AI-powered, and select the correct ITR Form automatically based on your income source with a pre-filled data feature.

Income Tax Heads that Determine Your ITR Form

There are 5 different heads of income tax as given below -

• Income from Salary
  This head covers the income that is received by an employee in the form of basic salary, allowances, commissions, bonuses, and perquisites (such as accommodation provided by the company or vehicles). Salaried individuals having income only from salary can file ITR-1 (Sahaj).
• Income from House Property
  Income earned from renting out residential or commercial property, either fully or partially, falls under this category. It also includes income from subletting. If the taxpayer has only one house property and there’s no loss from carry forward, they can file using the ITR-1 form.
• Income from Capital Gains
  Any profits and gains from the sale of capital assets such as stocks, mutual funds, real estate, and bonds are taxed under this head. Taxpayers having capital gains upto ₹1.25 lakh can report their gains in ITR-1. Long-term capital gains exceeding this limit or having complex transactions must be reported in ITR-2.
• Income from Business or Profession
  Self-employed individuals, including freelancers, business owners, and consultants, can file their ITR using ITR-3, ITR-4, ITR-5, and ITR-6, depending on the nature, turnover, and structure of their business or profession.
• Income from Other Sources
  The sources of income not covered in the above four categories are covered under this head. It includes sources like interest from fixed deposits, savings accounts, dividends, gifts exceeding the exemption limit, and winnings from online games and lotteries. This income must be reported under the appropriate ITR form based on the overall income profile.

Types of ITR Forms and Which ITR Form to File?

The Income Tax Department’s official website lists different ITR form types that taxpayers may be required to fill out based on their income. Some of these are easy to file, while others need some additional disclosures like P/L (profit and loss) statements, etc.

ITR 1 or SAHAJ for FY 2025-26

Sahaj is one of the most simplified one-page ITR forms.

Who Can File ITR 1?

If you are wondering which ITR form to file for a salaried person, ITR-1 is the most suitable ITR form. This form is for a resident individual whose total income includes-

• Income earned from salary or Pension.
• Income from other sources, except lottery income, owning & maintaining race horses
• However, income from One House Property, in this form, the loss brought forward from previous years are not eligible.
• Income from agricultural activities up to Rs 5000.
• The total income of the individual should not exceed 50 Lakhs.
• Individuals having long-term capital gains u/s 112A upto Rs. 1.25 lakhs can report their income in ITR-1, starting FY 2024-25.

Who Cannot File ITR 1(Sahaj)?

• Non-Resident
• Not Ordinarily Resident
• A person having a business or profession
• Anyone having a total income exceeding Rs 50 lakhs
• If you own more than one house property
• Income arising from Winnings from Lottery or Horse Races, Gambling, or speculation income
• An assessee having taxable Capital Gains income, exceeding Rs. 1.25 lakhs.
• Individuals having a financial interest in assets located outside India, which includes any signing authority for accounts held outside India.
• Person having foreign income or claiming relief u/s 90/90A/91 for taxes paid in foreign country
• Loss under income from other sources
• One who desires to carry forward or bring forward loss under income from house property.
• An individual who is holding the position of a Director in a company
• An Individual who has held any unlisted equity shares at any time during the previous year
• Agricultural income exceeding Rs. 5,000/-
• Any claim of credit of TDS in the hands of any other person
• Any tax has been deducted under Section 194N
• In cases where payment or deduction of tax has been deferred on ESOP
• Read More..

Taxpayers opting out of the new tax regime must now provide Form 10-IEA details, and deductions under Sections 80C to 80U must be selected from dropdowns.

ITR 2 FY 2025-26

Who Can File ITR 2?

This form is for individuals or a HUF (Hindu Undivided Family) whose income includes:

• Income from salary or Pension
• Income from House Property(one or more)
• Income from other sources, including income from winning a lottery, income from owning and maintaining horse races, or income taxable at special rates.
• Persons who had investments in unlisted equity shares at any time during the entire financial year.
• An individual who is a director in a company.
• An individual who is a Resident(ROR/RNOR)or non-resident.
• Income earned from capital gains
• Income from foreign assets/ other foreign income.
• Agricultural income of more than Rs 5,000/-
• Incomes where clubbing provisions are applicable
• Individuals having a financial interest in assets located outside India, which includes any signing authority for accounts held outside India.
• One who desires to carry forward or bring forward loss under income from house property.
• Any tax has been deducted under Section 194N
• In cases where payment or deduction of tax has been deferred on ESOP
  (Total income can exceed 50 lakhs in this ITR Form)

Who Cannot File ITR 2?

• Individuals or HUFs whose accruing income is from business or profession
• Partner of a partnership firm having income from a partnership.

Key Updates in ITR 2 form for FY 2024-25

Schedule-Capital Gain split for gains before/ after 23.07.2024 (post changes in Finance Act, 2024)

• Capital loss on share buyback allowed if corresponding dividend income is shown as income from other sources (post 01.10.2024)
• Asset & liability reporting limit raised to ₹1 crore of total income
• Enhanced reporting for deductions [80C,10(13A)], etc.
• TDS section code to be reported in Schedule-TDS
• Read More..

ITR 3 for FY 2025-26

Who Can File ITR 3?

This form is to be used by either an individual or a Hindu Undivided Family who are carrying on a profession or a business and has not opted for the presumptive scheme. The following persons are eligible to fill out this ITR form:

• The residential status can be either Non-resident or Resident(ROR/RNOR)
• The person is carrying on a business or profession and is required to maintain books of accounts and required to get them audited.
• The return may include income from house property, salary/pension, and income from other sources.
• Persons who had investments in unlisted equity shares at any time during the entire financial year.
• Income of a person who is a partner in a firm.

Who Cannot File ITR 3?

• Companies
• Trusts
• Co-operative Society
• Local Authority
• Artificial Juridical Person
• Firm including LLP
• AOP, BOI

Things to Remember for ITR-3 Filing in FY 2025-26

• Capital Gains Split: Report gains separately for sales made before and on/after 23 July 2024.
• Buyback Loss: From 1 Oct 2024, losses on share buyback allowed if dividend is taxed as “Other Sources.”
• Asset Disclosure Limit Raised: Now required only if total income exceeds ₹1 crore (earlier ₹50 lakh).
• New Section 44BBC: Added for cruise business operators.
• More Deduction Details: Detailed reporting needed for claims under 80C, 10(13A), etc.
• TDS Section Code: Must specify code under which tax was deducted.
• Dropdowns for deductions like Section 80C and section-wise TDS reporting have also been introduced, enhancing transparency, accuracy, and ease of filing.

Read More..

ITR 4 or Sugam for FY 2025-26

Who Can File ITR 4?

• This form is applicable to both the resident individuals and HUFs.
• Other than LLPs, all partnership firms which are residents and have an income that is either professional or from the business.
• Those persons who have opted for a presumptive income scheme according to Section 44AD, Section 44AE, and Section 44ADA of the Income Tax Act.
• If the person’s business turnover exceeds Rs. 2 crores, then he is required to file ITR-3 with the Audit report and not ITR 4.
• The total income for ITR 4 should not exceed Rs. 50 lakhs.
• Income from One House Property(loss brought forward from previous years or carry forward of losses are not eligible in this ITR Form ).
• Income from Salary or Pension.
• Income from other sources. (excluding income from winning a lottery or income from owning and maintaining race horses, income taxable under section 115BBDA or 115BE).

Who Cannot File ITR 4(SUGAM)?

• Anyone who maintains books of accounts and is willing to set off expenses with income earned and does not want to file as per the 44AD / 44ADA and 44AE provisions, i.e., presumptive taxation basis.
• Income earned through capital gains.
• If you own more than one house property, whether let out or self-occupied
• A person having Agricultural income in excess of Rs 5,000.
• A person who is a Director in a company
• A person has held any unlisted equity shares at any time during the previous year.
• Persons having financial interest in assets located outside India, which includes any signing authority for accounts held outside India
• Income arising from Winnings from Lottery or owning and maintaining Horse Races, Gambling, or speculation income.
• Person claiming relief u/s 90/90A/91 for taxes paid in a foreign country.
• Loss under income from other sources
• One who desires to carry forward or bring forward loss under income from house property
• Any claim of credit of TDS in the hands of any other person
• In cases where payment or deduction of tax has been deferred on ESOP
• Any individual having long-term capital gains upto Rs. 1.25 lakhs under section 112A can also file ITR-4 starting FY 2024-25.

Taxpayers opting out of the new tax regime must now provide Form 10-IEA details, and deductions under Sections 80C to 80U must be selected from dropdowns.

Read More..

ITR-5

Who Can File ITR 5?

The following should choose the ITR-5 form :

• Investment funds
• Business trusts
• Estate of insolvent, Estate of deceased
• Artificial Juridical Person (AJP)
• Body of Individuals (BOIs)
• LLPs
• Associations of Persons (AOPs) and Firms.

Who Cannot File ITR 5?

• Individuals
• HUF
• Company
• A person is required to file Form ITR-7, i.e., Trusts, etc, claiming the exemption of Section 11.

Things to Remember While Filing ITR-5 for FY 2025-26

• Capital Gains Split: Gains must be reported separately for before and after 23 July 2024 to align with revised tax rules.
• Share Buyback Losses: Allowed if corresponding dividend income (especially post-1 Oct 2024) is declared under ‘Other Sources’.
• New Section 44BBC: Checkbox added to opt for presumptive taxation under this new section.
• Mandatory TDS Code: Taxpayers must specify TDS section codes (like 194A, 194C) in TDS schedules.
• Entity Details Expanded: Requires full name, PAN, LLPIN (if applicable), date of formation, and business start date.
• Detailed Contact Info: Must now provide full address, 2 mobile numbers, and 2 email IDs.
• Due Date Dropdown: New option to select applicable filing deadline from a dropdown.

Read More..

ITR-6

Who Can File ITR 6?

This form can be used by companies that are not claiming any exemptions under Section 11(Income from property held for charitable or religious purposes) and by a person who is required to file the return in Form ITR-7.

Who Cannot File ITR 6?

• Section 11 companies are companies formed with a charitable or religious purpose.
• A person on which Form ITR-7 is applicable

Things to Remember While Filing ITR 6 Form for FY 2025-26

• No exemption Under Section 11: ITR-6 is applicable only to companies and firms that do not claim any tax benefits or exemptions under section 11, which is related to income derived from property held for religious or charitable purposes.
• Comprehensive Reporting: This form requires the taxpayer to provide a detailed report of the income, expenses, and tax calculations from sources like business and capital gains.
• Tax Computation: ITR-6 has sections for calculating the tax liability on the basis of the applicable tax rates for companies.

Read More..

ITR-7

Who Can File ITR 7?

Persons, including companies that are required to file returns under Section 139(4A), Section 139(4B), Section 139(4C), Section 139(4D), Section 139(4E), or Section 139(4F) should choose ITR-7 form. The details against each section are briefed for you below:

• Section 139(4A): The return to be filed in respect of Income from a property, of which the true owner is a trust or such property is held under any other legal obligation. In this case, the income generated should be used only for charitable or religious purposes.
• Section 139(4B): The return to be filed in respect of total Income derived by a Political party
• Section 139(4C): The below-mentioned entities should file returns under this section:
  • i.) Scientific Research Association.
  • ii.) Educational institutions, hospitals, and other medical institutions.
  • iii.)Associations and institutions covered under section 10(23A) and Section 10(23B).
  • iv.) News agencies.
  • v.) Others as may be prescribed.
• Section 139(4D): The returns by colleges, universities, or any other institutions that are not required to furnish a return of income or loss under any other provision under this section.

Who Cannot File ITR 7?

Any other person from those specified above cannot report using the ITR 7 Form.

Things to Remember While Filing ITR 7 Form for FY 2025-26

The new format aligns with amendments introduced in the Finance Act, 2024.

It includes enhanced disclosure requirements related to:

• Foreign contributions
• Registration under different laws (like FCRA, SEBI)
• Compliance with conditions of tax exemptions

Fields have been expanded for reporting voluntary contributions, accumulated income, and application of funds under various clauses of Section 11 and 12.

Additional compliance checks have been introduced for specified violations under Section 13, which could lead to denial of exemption.

Read More..

What is ITR-U (Updated Return) and When Should You Use It?

ITR-U stands for Income Tax Updated Return. It is a new option introduced by the Income Tax Department that allows you to correct or update your income tax return after the usual deadlines have passed.

Why Was ITR-U Introduced?

Earlier, if you missed filing your tax return on time or found a mistake after the deadline, you could not update your return easily. Now, with ITR-U, you get extra time and a chance to fix errors or add missed income even after the original and revised return deadlines are over.

Who Can File ITR-U?

• Taxpayers who did not file their original return or filed it late and want to file it now.
• Those who forgot to report some income like interest, freelancing income, or rent.
• Taxpayers who made mistakes in their earlier return, such as selecting the wrong tax regime or income category.
• People who want to update their return within 4 years (48 months) from the end of the relevant assessment year.

For example, for the financial year 2024-25 (Assessment Year 2025-26), you can file an updated return up to March 31, 2030.

What Can You Do with ITR-U?

• Add any missed income that was not declared earlier.
• Correct errors in your income details.
• Change the tax regime or income head, if done incorrectly before.

What Can’t You Do with ITR-U?

• You cannot claim a refund or increase your refund amount using ITR-U.
• You cannot report losses or reduce your tax liability through an updated return.
• You cannot file ITR-U if your case is under tax assessment or scrutiny.
• You cannot file ITR-U after 48 months from the end of the assessment year.

How Is ITR-U Different from Revised or Belated Return?

• A revised return can only be filed before the end of the relevant assessment year or before assessment begins.
• A belated return can be filed up to the end of the relevant assessment year.
• But ITR-U can be filed even after these deadlines, up to 4 years, giving more time to taxpayers to comply.

Is There Any Penalty for Filing ITR-U?

Yes, since you are filing late, you may need to pay interest or penalties on the additional tax payable due to the updated return. The exact amount depends on how late you file and the tax due.

When Should You File ITR-U?

• If you missed filing your ITR within the deadlines.
• If you found any income not declared earlier.
• If you made mistakes in your tax return and want to correct them.
• If you want to comply with tax laws voluntarily before the Income Tax Department raises any issue.

What is ITR-V, and How to e-Verify Your ITR?

What is ITR-V?

ITR-V stands for Income Tax Return – Verification. It is a confirmation document that you get after filing your income tax return (ITR) online without using a digital signature.

Think of ITR-V as an acknowledgement slip from the Income Tax Department confirming that you have submitted your return. However, your return is not considered fully submitted or valid until you verify it.

Why Do You Need to Verify Your ITR?

Verification is an important step that tells the Income Tax Department that you have genuinely filed your return and all information is correct to the best of your knowledge.

Without verifying your ITR, your return will be treated as invalid, and you might miss out on refunds or face penalties.

How Do You Get ITR-V?

• After you file your ITR online (without digital signature), the Income Tax Department sends you an ITR-V form via email (to the registered email ID) or you can download it from the income tax e-filing portal.
• It looks like a one-page PDF document with details like your name, PAN, and acknowledgment number.

How to e-Verify Your ITR?

E-verification is a quick and secure way to complete the verification process online. Here are the popular methods:

• Aadhaar OTP (One-Time Password)
  Use your linked Aadhaar number to receive an OTP on your registered mobile number and verify instantly.
• Net Banking
  Log in to your bank’s net banking account, find the ‘e-verify return’ option, and complete the process.
• Bank Account Number or Demat Account Number
  If linked with your PAN, you can use these to e-verify.
• Digital Signature Certificate (DSC)
  If you have a DSC, you can use it to verify your return electronically.

What if You Don’t e-Verify Your ITR?

• Your return will remain unverified.
• You will need to send the signed physical copy of ITR-V to the Centralized Processing Center (CPC) in Bangalore within 120 days of filing.
• If you don’t verify (either electronically or physically), your return will be considered invalid, and you may have to file it again.

What Happens When You File Wrong ITR Form?

Filing the wrong Income Tax Return (ITR) form can lead to a few complications, but there are also solutions to rectify the situation. Here's what you need to know:

• Rejection of ITR: The Income Tax Department might reject your return if it's filed in an incorrect form. This can cause delays in processing and potential penalties for late filing (if the deadline has passed).
• Scrutiny or Assessment: Even if your return isn't rejected, using the wrong form could trigger additional scrutiny from the tax authorities. They might ask you to re-file using the correct form.

There are ways to address filing the wrong ITR form:

• Revised Return: If you catch the mistake before the ITR filing deadline you can file a revised return using the correct form. There's no limit on the number of revised returns you can submit within the year.
• Defective Return Notice: If the department identifies the incorrect form after the deadline, they might issue a "defective return notice" under Section 139(9) of the Income Tax Act. This notice gives you 15 days to rectify the mistake by filing a revised return. You can also request an extension for filing the revised return.

Confused about which ITR Form to choose? Tax2win automatically identifies the applicable ITR form based on your financial needs. File ITR with Tax2win now!

Who Is Required to File an ITR in FY 2025-26?

Individuals who earn income above a certain threshold limit are generally required to file an Income Tax Return (ITR) form. Individuals with Total Income exceeding the Basic Exemption Limit: The slab rates for FY 2025-26 are as follows -

Note: If your total income (before deductions) exceeds these thresholds, you are required to file an Income Tax Return (ITR).

If you opt for the new tax regime in FY 2025-26, then, the threshold for filing ITR is Rs.4 lakhs. This means that if your annual income is less than Rs. 4 lakhs, you are not required to file an ITR. However, there are some exceptions to this rule.

Certain Individuals Required to File ITR:

These individuals are required to file an ITR regardless of the income threshold.

In addition to the above, there are certain conditions in which individuals are required to file an ITR, even if your income is below the basic exemption limit -

• Deposits in a Current Account: If you have deposited ₹1 crore or more in one or more current bank accounts. However, this rule does not apply to deposits in a post office current account.
• Deposits in a Savings Account: If you have deposited ₹50 lakh or more in one or more savings bank accounts.
• Foreign Travel Expenses: If you have spent more than ₹2 lakh on foreign travel for yourself or someone else.
• Electricity Bills: If your total electricity consumption expenses exceed ₹1 lakh in the previous year.
• TDS or TCS Exceeds ₹25,000: If the tax deducted at source (TDS) or tax collected at source (TCS) exceeds ₹25,000 in the previous year. For senior citizens (above 60 years), the limit is ₹50,000.
• Business Turnover: If your total sales, turnover, or gross receipts from business exceed ₹60 lakh in the previous year.
• Professional Income: If your total gross receipts from a profession exceed ₹10 lakh in the previous year.

ITR Form Applicability Matrix (FY 2025-26)

Why Should You File ITR?

1. Legal Proof:
   Income Tax Return serves as a legally significant document registered with the government.
   Accepted as a valid identity proof as well as Income proof.
2. Deduction Claims:
   Filing Income Tax Returns enables taxpayers to claim deductions and exemptions provided by the government to reduce tax liabilities.
   These deductions are applicable to investments and can help in minimizing tax obligations. Additionally, refunds for Tax Deducted at Source (TDS) can be claimed.
3. Loan Application:
   It is essential for loan applications, as banks require various documents including Aadhar card, PAN card, and income proof like Income Tax Returns for the past three years.
4. International Travel Facilitation:
   It is vital for international travel plans as many countries require Income Tax Returns as part of visa application documentation.
   Filing returns showcases a responsible financial history, enhancing visa approval chances.
5. Avoidance of Penalties:
   Failure to file Income Tax Returns when liable to pay taxes can result in penalties as per the Income Tax Act 1961.
6. Loss Carryforward Provision:
   Enables individuals to offset losses against future income, providing tax relief in subsequent years.

Types of Forms to File Income Tax Returns

Form 16

• Form 16 is issued annually by employers to their employees. It serves as proof that the employer has deducted TDS (Tax Deducted at Source) from the salary of the employee and deposited it with the Income Tax Department.
• Form 16 consists of two parts:
  • Part A: This part includes details of the employer and employee, such as their PAN (Permanent Account Number), TAN (Tax Deduction and Collection Account Number) of the employer, period of employment, a summary of tax deducted and deposited quarterly, and assessment year.
  • Part B: This part provides a detailed breakup of salary paid to the employee, allowances exempt under Section 10, deductions allowed under Chapter VI-A (like Section 80C, 80D, etc.), and the resultant taxable income after these deductions.
• Employees use Form 16 to file their income tax returns (ITR). It helps calculate the total income earned during the year and the tax deducted at source. The information provided in Form 16 is crucial for accurate tax return filing. File your tax return.

Form 26AS

Form 26AS is a consolidated tax statement that includes details of tax deducted at source (TDS), tax collected at source (TCS), advance tax paid, and self-assessment tax payments made by the taxpayer. Here are key points about Form 26AS:

• Contents: It shows details of tax credits associated with a PAN (Permanent Account Number), including TDS on salary, interest income, rental income, etc., TCS on purchases, and advance tax and self-assessment tax payments made by the taxpayer.
• Importance: Form 26AS is crucial for taxpayers to verify the tax credits claimed by them in their income tax returns. It helps in ensuring that the taxes deducted or paid on their behalf are correctly reflected and accounted for in their tax liability.
• Access: Taxpayers can view and download their Form 26AS from the income tax department's e-filing portal or through their net banking facility if it's enabled for viewing Form 26AS.
• Verification: Before filing income tax returns, it's advisable for taxpayers to verify the details in Form 26AS to ensure accuracy and avoid discrepancies in claiming tax credits.
• Updates: Form 26AS is periodically updated as and when deductors and banks file their TDS/TCS returns and when taxpayers pay advance tax or self-assessment tax.

It serves as a comprehensive record of all tax-related transactions associated with a PAN, helping taxpayers in their income tax compliance and filings.

Form 15G and Form 15H

Form 15G and Form 15H are forms provided under the Income Tax Act of India to help individuals prevent the deduction of tax at source (TDS) on their income, especially when their total income is below the taxable limit. Here's a brief overview:

• Form 15G: This form is for individuals below 60 years of age (individuals and HUFs) who have a total income that is below the taxable limit. By submitting Form 15G to the deductor (such as banks or financial institutions), they declare that their income is below the taxable limit, and hence, no TDS should be deducted from it.
• Form 15H: This form is for senior citizens (individuals aged 60 years or above) who have a total income below the taxable limit. Similar to Form 15G, by submitting Form 15H, they declare that no TDS should be deducted from their income.

Which ITR to File for the AY 2026-27 (FY 2025-26)?

While you can file your ITR yourself using our AI-powered DIY option, you can also get help from our online CAs. Our experts specialize in 100% accurate ITR filing and maximizing your tax refund so you can keep more of what you earn. Whether you need help with tax planning or want to file your ITR with expert assistance, our experts have got you covered. Book an eCA now!

New Income Tax Forms (Effective April 2026)