Guide to Choosing the Correct ITR Form for FY 2024-25 (AY 2025-26)

An ITR (Income Tax Return) form is a format in which taxpayers declare their income, deductions, tax payments, and other relevant details to the Income Tax Department. The form you choose depends on:

Let’s break it down step-by-step.

🧾 First Things First – What Is an ITR Form?

An ITR (Income Tax Return) form is a document you fill and submit to the Income Tax Department of India to declare your income, deductions, and taxes paid. Think of it as your annual financial report card!

Which ITR Form Should You Use?

The government offers different ITR forms based on the type and source of income. Here’s an easy-to-understand breakdown:

👩‍💼 ITR-1 (SAHAJ) – For the Salaried Class

Who Can File:

• Resident individuals (excluding NRIs and Not Ordinarily Resident)
• Income up to ₹50 lakh from permitted sources

Sources of Income Covered:

• Salary or pension
• One house property
• Other sources
• LTCG up to ₹1.25 lakh
• Agricultural income up to ₹5,000

Not for: Directors, unlisted equity shareholders, foreign income/assets holders

Example: A salaried employee earning ₹12 lakh annually with ₹1.2 lakh LTCG can file ITR-1.

💼 ITR-2 – For Capital Gains & Foreign Asset Holders

Who Can File:
Individuals and HUFs

Sources of Income:

• Salary/pension
• Multiple house properties
• Capital gains
• Foreign assets or income
• Other sources

Not for: Business or professional income

Example: A salaried person earning capital gains and foreign income files ITR-2.

🧑‍💻 ITR-3 – For Business Owners and Professionals

Who Can File:

• Individuals and HUFs with income from business/profession

Sources of Income:

• Business or professional income
• Capital gains
• Other sources

Example: A freelance graphic designer with rental income should file ITR-3

📦ITR-4 (SUGAM) – For Presumptive Taxpayers

Who can file:

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

Sources of Income:

• Business/professional income under 44AD/44ADA/44AE
• One house property, salary, other sources, LTCG up to ₹1.25 lakh

Example: An electrician earning ₹20 lakh under 44ADA with FD interest can file ITR-4.

🧮 ITR-5 – For Firms, LLPs, and AOPs

Who Can File:

• Partnerships (other than LLPs)
• LLPs
• AOPs, BOIs

Example: A registered partnership firm running a business files ITR-5.

🏢 ITR-6 – For Companies (Not Claiming Exemption Under Sec 11)

Who Can File: Companies not claiming exemption under Section 11

Example: An IT company not registered as a trust files ITR-6.

🛕 ITR-7 – For Trusts, Charities & Political Parties

Who Can file:

• Trusts, political parties, research institutions
• Those claiming exemption under Sections 139(4A) to 139(4D)

Example: An NGO registered under Section 12AA must file ITR-7.

Decision Flow – Quick Summary

Important Filing Deadlines (FY 2024-25)

• Non-audit taxpayers: September 15, 2025
• Audit cases: Extended to October 31, 2025
• Revised return deadline: December 31, 2025

📝 Pro Tips Before You File:

1. Check Form 26AS– It shows your tax credit.
2. Use AIS (Annual Information Statement)for a full income snapshot.
3. File before the deadline(usually 31st July for individuals).
4. E-Verifyafter filing to complete the process.