Income Tax Return FY 2024-25: Applicability of ITR Forms for Different Taxpayers

by

The Income Tax Department of India has prescribed different Income Tax Return (ITR) forms for different categories of taxpayers, depending on their residential status, nature of income, and amount of income. Selecting the correct ITR form is crucial for accurate filing, compliance, and avoiding notices or processing delays.

The forms range from ITR-1 to ITR-7, catering to:

  • Individuals
  • Hindu Undivided Families (HUFs)
  • Firms
  • LLPs
  • Companies
  • Trusts
  • Other persons like AOPs, BOIs, and local authorities

Each form is tailored to specific income profiles such as salary, business or professional income, capital gains, foreign assets, and presumptive taxation schemes.

Here is a clear and updated summary of which ITR (Income Tax Return) form applies to which type of assessee for AY 2025-26 (FY 2024-25):

✅ ITR-1 (Sahaj)

Applicable to:

  • Resident Individuals (Ordinary Resident)
  • Total income ≤ ₹50 lakh
  • Income from:
    • Salary / Pension
    • One House Property (not brought forward loss)
    • Other sources (Interest, FD, etc.)
    • Agricultural income (up to ₹5,000)

Not applicable if:

  • Director in a company
  • Holds unlisted shares
  • Has foreign assets or income
  • Has capital gains
  • TDS under section 194N
  • Brought forward losses or losses to be carried forward

✅ ITR-2

Applicable to:

  • Individuals / HUFs not having business/professional income
  • Can have:
    • Capital gains
    • More than one house property
    • Foreign assets or foreign income
    • Holding of unlisted equity shares
    • Income > ₹50 lakh

Not applicable if: There is any business or professional income

✅ ITR-3

Applicable to:

  • Individuals / HUFs having:
    • Business income
    • Income from profession (legal, medical, consultancy, etc.)
    • Presumptive income under section 44AD, 44ADA, 44AE (if not opting ITR-4)
  • Also includes:
    • Director in company
    • Holding unlisted shares
    • Capital gains, multiple house properties, foreign income/assets

✅ ITR-4 (Sugam)

Applicable to:

  • Resident Individuals / HUFs / Firms (other than LLP) having:
    • Presumptive income under section 44AD, 44ADA, 44AE
    • Total income ≤ ₹50 lakh

Not applicable if:

  • Director in a company
  • Holds unlisted equity shares
  • Has foreign income/assets
  • Claims deduction under section 10AA or 80QQB/80RRB
  • Income from more than one house property or capital gains

✅ ITR-5

Applicable to:

  • Partnership firms
  • LLPs
  • Association of Persons (AOPs)
  • Body of Individuals (BOIs)
  • Local Authorities
  • Artificial Juridical Person (AJP)
    (Not for individuals or HUFs)

✅ ITR-6

Applicable to:

  • Companies other than companies claiming exemption under section 11 (i.e. income from property held for charitable/religious purposes)

✅ ITR-7

Applicable to:

  • Persons including companies required to furnish return under:

    • Section 139(4A) – Trusts
    • Section 139(4B) – Political parties
    • Section 139(4C) – Certain institutions like research bodies, funds

    • Section 139(4D) – Colleges, universities, etc.

Please share

Leave a comment