ITR Filing 2025: ITR-1 to 7 Explained — Which Income Tax Return Form is Right for You?

The Income Tax Department has released all the seven Income Tax Returns (ITR) forms for the Assessment Year 2025-26 and these forms are used to file returns for the fiscal year 2024-25 (FY25).

Which ITR Form Is Right For You?

For small as well as medium taxpayers the ITR-1 (Sahaj) and ITR-4 (Sugam) forms continue to serve as the go-to options.

Typically, ITR-1 is valid for resident individuals who have a total annual income of up to Rs 50 lakh, coming from salary, one house property, and interest income, along with a small agricultural income of up to Rs 5,000.

ITR-2 is the right form for those with capital gains but no business income.

ITR-3 is for individuals as well as Hindu Undivided Families (HUFs) with income from business or profession.

ITR-4 is used by individuals, HUFs and companies other than Limited Liability Partnerships (LLPs) who earn up to Rs 50 lakh through business or professional income.

ITR-5 is usually used by companies, LLPs and cooperative societies.

ITR-6 is meant for companies registered under the Companies Act.

ITR-7 is applicable for trusts and charitable institutions.

Changes For Small Taxpayers

There is one key change which will affect small taxpayers including small business owners and salaried individuals who earn long-term capital gains (LTCG) from listed shares or mutual funds.

If the gains are up to Rs 1.25 lakh per year, these individuals can now file returns using ITR-1 or ITR-4 forms.

Up until previous year, they had to use ITR-2, which is slightly more complex.

Using ITR-1 or ITR-4 forms makes the process of filing returns easier.

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