Which ITR Form Should You File in India? 2025–26 Guide
Confused about which ITR form to file for the Assessment Year 2025–26? You're not alone! Filing your Income Tax Return (ITR) is mandatory if your income crosses certain thresholds—but choosing the wrong form can lead to penalties, rejection, or delayed refunds.
Whether you’re salaried, a freelancer, a business owner, or an investor, this complete guide will help you understand which ITR form is right for you in 2025—with real examples, income rules, and updated eligibility.
---📌 What is an ITR Form?
An Income Tax Return (ITR) form is a document used by individuals, firms, and companies in India to report income, tax liabilities, deductions, and exemptions to the Income Tax Department. There are 7 types of ITR forms—each applicable based on your income type, taxpayer category, and financial complexity.
---🗓️ For Which Year Are You Filing?
- Financial Year (FY): 2024–25 (April 1, 2024 – March 31, 2025)
- Assessment Year (AY): 2025–26 (the year you're filing your return)
📄 List of ITR Forms for AY 2025–26 (for Individuals)
ITR Form | Applicable For | Income Type Covered |
---|---|---|
ITR-1 (Sahaj) | Resident individuals with income up to ₹50 lakh | Salary/pension, one house, other sources (interest) |
ITR-2 | Individuals/HUFs without business income | Capital gains, multiple houses, foreign assets |
ITR-3 | Individuals/HUFs with business or professional income | Income from proprietary business/profession |
ITR-4 (Sugam) | Presumptive income (44AD, 44ADA, 44AE) | Business or profession income below ₹50 lakh |
👨💼 ITR-1 (Sahaj): For Simple Salaried Individuals
Eligible If You Have:
- Income up to ₹50 lakh from salary or pension
- Income from one house property
- Interest from FDs or savings bank
Not Eligible If:
- Income from capital gains
- Income from business/profession
- More than one house property
- Foreign assets or NRIs
Example: A salaried employee earning ₹10L/year + bank interest can use ITR-1 if no capital gains or foreign holdings exist.
---📈 ITR-2: For Salaried + Capital Gains/Foreign Assets
Use ITR-2 If:
- You’re a salaried individual with capital gains from stocks, mutual funds, or property
- You own more than one house property
- You have income from foreign sources or crypto
Not For: Business/professional income holders.
Example: You earned ₹8L salary + ₹2L LTCG from equity. You must use ITR-2.
---💼 ITR-3: For Business Owners and Freelancers
Who Should File:
- Individuals with income from proprietary businesses
- Freelancers (writers, consultants, designers) not under presumptive taxation
- Partners in a firm (but not LLP)
Key Points:
- You must maintain books of accounts
- Audit required if turnover exceeds ₹1 crore
Example: You earn ₹15L/year as a digital marketer and maintain books—file ITR-3.
---🧾 ITR-4 (Sugam): Presumptive Income Scheme
Eligible If:
- Your total income is up to ₹50 lakh
- You declare income under Section 44AD (business) or 44ADA (profession)
- You’re a freelancer, tuition teacher, or blogger
Advantages:
- No need to maintain books
- Declare flat 6%–8% income (business) or 50% income (profession)
Example: A freelance graphic designer earning ₹10L can file ITR-4 by declaring ₹5L (50%) as income.
---🔍 Real-Life Case Studies
- Rita (Salaried, ₹7L + FDs): No capital gains → ITR-1
- Ravi (Salaried, ₹10L + Sold Equity): LTCG of ₹1L → ITR-2
- Megha (Freelancer): Earns ₹18L as marketing consultant → ITR-3
- Amit (Shop Owner): Uses 44AD presumptive scheme → ITR-4
⚠️ What If You File the Wrong ITR Form?
- Your return may be treated as “defective” under Section 139(9)
- You may get a notice or lose refund eligibility
- Ineligible deductions can be rejected
Tip: You can file a revised return before Dec 31, 2025, if you made a mistake.
---📅 ITR Filing Deadlines for AY 2025–26
- 31 July 2025: Individuals (non-audit cases)
- 31 October 2025: Audit cases
- 31 December 2025: Last date to file belated or revised return
💬 FAQs – Frequently Asked Questions
Q1. I’m a student earning through freelancing. Which form should I file?
If income is below ₹50L and you're using presumptive taxation (44ADA), file ITR-4.
Q2. Can I use ITR-1 if I have dividend income?
Yes, as long as it's not from foreign sources and the total income is under ₹50L.
Q3. What if I sold mutual funds during the year?
You need to report capital gains, so file ITR-2.
Q4. I own foreign stocks (e.g. Apple via INDmoney). Which form?
Since you hold foreign assets, use ITR-2.
---✅ Final Thoughts: Choose the Right ITR for a Hassle-Free Return
Picking the correct ITR form is the first—and most important—step to filing your return accurately. It helps avoid legal issues, refund delays, and compliance notices. Whether you are a salaried employee, freelancer, or investor, know your income sources and file accordingly.
🔐 Pro tip: Use tools like Cleartax, Taxbuddy, or the Income Tax Portal for guided filing. Or consult a tax expert for complex returns.
File smart, file early—and keep your financial record clean!
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