Filing an starts with selecting the right ITR form based on your annual income, sources of income and taxpayer category. There are seven ITR forms, and selecting the right one is essential to avoid errors and remain compliant with tax regulations.
Let’s look at the seven ITR forms and find the one that’s right for you.
7 Types of ITR Forms
The applicable depends on the taxpayer’s income sources and tax category.
ITR-1 (Sahaj): Resident individuals with income up to ₹50 lakh from salary, one house property, pension, or other specified sources.
ITR-2: Individuals and HUFs with capital gains, multiple house properties, foreign assets/income, or total income above ₹50 lakh, but no business income.
ITR-3: Individuals and HUFs earning income from a business or profession, including partners in partnership firms.
ITR-4 (Sugam): Resident individuals, HUFs and firms (other than LLPs) opting for the presumptive taxation scheme with income up to ₹50 lakh.
ITR-5: Partnership firms, LLPs, AOPs, BOIs and other similar entities.
ITR-6: Companies, except those claiming exemption for charitable or religious purposes under Section 11.
ITR-7: Charitable and religious trusts, political parties, educational institutions, hospitals and other entities claiming exemptions under specific provisions of the Income Tax Act.
ITR-1 to ITR-7: Who can file and who cannot?
The eligibility requirements for different ITR forms are explained below.
ITR-1 (Sahaj)
Who can file ITR-1?
- Resident individuals with total income up to ₹50 lakh during the financial year
- Income from salary or pension
- Income from one house property
- Agricultural income up to ₹5,000
- Long-term capital gains under Section 112A up to ₹1.25 lakh
- Income from other sources, such as savings account interest, fixed deposit interest, and family pension
- Clubbed income of spouse or minor child, subject to prescribed conditions
Who cannot file ITR-1?
- RNORs and NRIs
- Individuals with total income exceeding ₹50 lakh
- Individuals with agricultural income above ₹5,000
- Individuals with taxable capital gains or LTCG under Section 112A exceeding ₹1.25 lakh
- Individuals with income from a business or profession
- Individuals owning more than one house property
- Directors in a company or investors in unlisted equity shares
- Individuals with income from lotteries, racehorses, or gambling activities
- Individuals covered under Section 194N or with deferred tax on ESOPs from eligible start-ups
ITR-2
Who can file ITR-2?
- Individuals and HUFs with income from salary, pension, house property, capital gains, or other sources, but no income from business or profession
- Individuals with total income exceeding ₹50 lakh, more than one house property or foreign assets/income
- NRIs, RNORs and individuals with clubbed income of a spouse or minor child
- Partners in a partnership firm who do not earn business income directly but receive interest, salary, bonus, commission or remuneration from the firm
- Individuals whose income includes clubbed income of a spouse, minor child, or any other person, provided such income falls under the eligible categories for ITR-2
Who cannot file ITR-2?
- Individuals or HUFs with income from a business or profession
- Taxpayers earning profits and gains from business or professional activities
- Partners in a partnership firm who have business income and receive interest, salary, bonus, commission, remuneration or any similar payment from the firm
ITR-3
Who can file ITR-3?
- Individuals and HUFs having income from business or profession, including those opting for the presumptive taxation scheme.
- Partners in a partnership firm earning income, such as salary, commission, bonus or remuneration from the firm
- Individuals who have invested in unlisted equity shares during the financial year
- Taxpayers who also earn income from salary, pension, house property, capital gains or other sources, along with business or professional income
Who cannot file ITR-3?
- Companies, charitable trusts, partnership firms, LLPs, AOPs and BOIs cannot file ITR-3
- Individuals and HUFs eligible to file ITR-1, ITR-2 or ITR-4 should not use ITR-3
ITR-4 (Sugam)
Who can file ITR-4?
- Resident individuals, HUFs, and firms (other than LLPs) with total up to ₹50 lakh
- Taxpayers opting for the presumptive taxation scheme under Sections 44AD, 44ADA or 44AE
- Individuals earning income from salary or pension, up to two house properties, and agricultural income up to ₹5,000
- Taxpayers with long-term capital gains under Section 112A up to ₹1.25 lakh
- Individuals earning interest income, family pension, or other income from permitted sources
Who cannot file ITR-4?
- RNORs and NRIs
- Individuals with short-term capital gains or long-term capital gains under Section 112A exceeding ₹1.25 lakh
- Individuals with agricultural income above ₹5,000 or income from more than two house properties
- Directors in a company or investors holding unlisted equity shares
- Individuals with income from lotteries, racehorses, or income taxable at special rates
- Individuals with deferred tax on ESOPs received from eligible start-ups
ITR-5
ITR-5 is meant for entities such as partnership firms, LLPs, Associations of Persons (AOPs), Bodies of Individuals (BOIs), and other similar organizations. It cannot be used by taxpayers who are required to file ITR-7.
ITR-6
ITR-6 is applicable to companies that are required to file income tax returns in India. However, companies claiming exemption under Section 11 for income from property held for charitable or religious purposes cannot file ITR-6 and must use ITR-7 instead.
ITR-7
ITR-7 is meant for charitable and religious trusts, political parties, educational institutions, hospitals, research associations, business trusts, investment funds, and other specified entities that are required to file returns under Sections 139(4A) to 139(4F) of the Income Tax Act.
Disclaimer: This is only for informational and educational purposes. Please consult a qualified tax expert for the latest tax laws and regulations.