To report earned income and pay the required tax to the Income Tax Department, taxpayers must file one of seven Income Tax Return (ITR) forms by the prescribed due date. These forms capture income, deductions, expenses and other tax details, allowing both the taxpayer and the Department to calculate tax liability accurately.
The correct ITR form depends on your total income, income sources and residential category. Filing on time helps avoid penalties, preserve the right to carry forward losses and claim refunds promptly.
Below is a clear guide to the different ITR forms and when to use each one.
An Overview of Seven Types of ITR Forms
Here are the main features and applicability of each ITR form:
ITR-1 (Sahaj)
ITR-1 is intended for resident individuals with total income up to ₹50 lakhs who have simple income sources. It applies to taxpayers who:
- Receive income from salary or pension
- Have income from a single house property (subject to rules on loss carryforward)
- Have no income from business or capital gains
- Earn agricultural income up to ₹5,000
- Have income from other sources, such as interest
Non-resident individuals and those with income from multiple house properties are not eligible for ITR-1.
ITR-2
ITR-2 is suitable for individuals and HUFs with more complex income structures, including:
- Total income exceeding ₹50 lakhs
- Income from capital gains, multiple house properties, salary, pension, or other sources
- Recorded gains from crypto treated as capital gains
- Agricultural income above ₹5,000
- Income from foreign assets
- Individuals who are company directors
- Residents not ordinarily resident (RNOR) and non-residents
Taxpayers with income from business or profession should not use ITR-2; they must choose the form applicable to business income.
ITR-3
ITR-3 is for individuals and HUFs who have income from a business or profession or who are partners in firms. Typical users include those who:
- Earn income from a profession or business
- Are partners in a firm
- Receive income from investments such as unlisted equity shares
- Are company directors
- Have income from house property, salary/pension and other sources
In short, individuals or HUFs not eligible for ITR-1, ITR-2 or ITR-4 should generally file ITR-3.
ITR-4 (Sugam)
ITR-4, known as Sugam, is for business owners, professionals and small taxpayers with total income up to ₹50 lakhs who opt for presumptive taxation. It applies to:
- Taxpayers using presumptive schemes under Sections 44AD, 44ADA and 44AE
- Individuals or firms with business income under the presumptive regime
- Taxpayers with no income from capital gains
- Those eligible to file ITR-1 for income from not more than one house property
- Taxpayers with income sourced within India
ITR-5
ITR-5 is for various non-individual entities, including:
- Artificial juridical persons
- Limited Liability Partnerships (LLPs)
- Associations of Persons (AOPs)
- Bodies of Individuals (BOIs)
- Business trusts
These entities use ITR-5 to report business income, property income, capital gains and other sources.
ITR-6
ITR-6 is designed for companies (other than those claiming exemption under Section 11). Companies use this form to file details of business income, capital gains, rental income and foreign assets.
ITR-7
ITR-7 is for entities and persons required to file returns under specific sections, including:
- Section 139(4A): Entities or individuals earning income from property or assets used for charitable or religious purposes
- Section 139(4B): Political parties
- Section 139(4C): Scientific research associations, hospitals, universities, educational institutions and certain media organizations
- Section 139(4D): Educational institutions required to furnish returns
- Section 139(4E): Certain business trusts
- Section 139(4F): Investment funds referred to in Section 115UB
Which ITR Should You File?
The following table summarizes which form to choose based on eligibility and income sources:
| Type of Form | Eligible for | Source of Income |
|---|---|---|
| ITR-1 | Resident Individuals and HUFs | Salary, Rent from House Property and Income from Other Sources |
| ITR-2 | Individuals and HUFs | Salary, Rent from House Property, Capital Gains, Foreign Assets and Other Sources |
| ITR-3 | Individuals, HUFs and partners in a firm | Salary, Rent from House Property, Capital Gains, Business/Profession, Foreign Assets and Other Sources |
| ITR-4 | Individuals, HUFs and Firms (presumptive) | Salary, Rent from One House Property, Business/Profession under Presumptive Scheme and Other Sources |
| ITR-5 | Partnership Firms, LLPs and similar entities | Rent from House Property, Capital Gains, Business/Profession, Foreign Assets and Other Sources |
| ITR-6 | Companies | Rent from House Property, Capital Gains, Business/Profession, Foreign Assets and Other Sources |
| ITR-7 | Trusts, Political Parties, Hospitals, Media Agencies and Educational Institutions | Rent from House Property, Capital Gains, Business/Profession, Foreign Assets and Other Sources |
Why You Should File ITR
Filing your ITR by the due date is important for several reasons:
- It is a legal requirement for eligible taxpayers
- Necessary to claim tax refunds
- Required documentation for visa or loan applications
- Allows carry forward of losses from business or capital gains only if returns are filed on time
Understanding which form applies to you reduces filing errors and helps you take full advantage of tax benefits, exemptions and deductions available under the law.
FAQs on Types of ITR
Which ITR to file for a salaried person?
ITR-1 (Sahaj) is suitable for salaried individuals with total income up to ₹50 lakhs. If your total income exceeds ₹50 lakhs, use ITR-2.
Which ITR to file if you have salary and share trading income?
If you earn salary and also have capital gains from share trading, ITR-2 is the appropriate form.
What are the different types of ITR filing?
There are seven ITR forms in total. ITR-1 through ITR-4 primarily apply to individuals and HUFs, while ITR-5, ITR-6 and ITR-7 are intended for firms, companies, trusts and other entities.
What is the difference between ITR-1 and ITR-2?
ITR-1 is for individuals with simpler income profiles and total income up to ₹50 lakhs. ITR-2 covers individuals and HUFs with higher income or more complex sources such as capital gains and foreign assets.
Which one to select: ITR-1 or ITR-4?
If you are a salaried individual with income up to ₹50 lakhs, choose ITR-1. If you run a business or profession and opt for the presumptive tax scheme with income up to ₹50 lakhs, choose ITR-4.
Who can file ITR-1?
Resident individuals and members of HUFs with total income less than ₹50 lakhs and specific income sources (salary, single house property, other sources) can file ITR-1.
Who should file ITR-2?
Individuals and HUFs with total income exceeding ₹50 lakhs or with income from capital gains, foreign assets or multiple properties should file ITR-2.
Who can file ITR-3?
Individuals and HUFs who have income from a business or profession, are partners in a firm, or otherwise are not eligible for ITR-1, ITR-2 or ITR-4 should file ITR-3.