TYPES OF ITR FORMS

ITR season has kicked off; it is officially the time to complete your ITR filings at the earliest.  Different ITR forms apply based on the nature and amount of income earned. However, before you start your ITR filing, you should know different types of ITR form to make the correct financial move.

What is ITR?

ITR stands for Income Tax Return is a form to declare their income and the applicable taxes to the Income Tax authorities.

What are different types of ITR forms?

There are seven types of ITR forms like ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, ITR 7. The applicability of ITR forms depends on various conditions such as the taxpayer’s sources of income, the total income earned, and their classification—whether they are an individual, Hindu Undivided Family (HUF), company, or any other category.

Guide to ITR forms

1. ITR 1

Eligibility Criteria

• Total income does not exceed ₹50 lakh

• Income sources include:
  • Salary or pension
  • Income from a single house property (excluding cases with loss carried forward from earlier years)

• Income from other sources (excluding lottery winnings and income from racehorses)

• Long-term capital gains under Section 112A up to ₹1.25 lakh (with no carry-forward or brought-forward capital loss)
• Agricultural income not exceeding ₹5,000

2. ITR 2

• Resident individuals with:
  • Total income ≤ ₹50 lakh.
  • Income from salary/pension, one house property (no brought-forward losses), other sources (excluding lottery/horse-race winnings).
  • LTCG under Section 112A up to ₹1.25 lakh (no carry-forward losses).
  • Agricultural income up to ₹5,000. What’s new for FY 2024–25:

• LTCG up to ₹1.25 lakh from listed equity now reportable in ITR‑1.
• Higher standard deduction of ₹75,000.
• Must declare significant foreign travel or electricity usage.

3. ITR 3

The ITR-3 form is for individuals and Hindu Undivided Families (HUFs) who earn income from proprietary business or are engaged in a profession.

Eligibility Criteria

• You are carrying on a business or profession and not opting for the presumptive taxation scheme under Sections 44AD, 44ADA, or 44AE.
• You are required to maintain books of accounts and/or get them audited under the Income Tax Act.
• You have invested in unlisted equity shares at any point during the financial year.
• In addition to business/professional income, your return includes income from:
  • House property
  • Salary or pension
  • Other sources
• You are earning income as a partner in a partnership firm (excluding LLPs claiming presumptive taxation).

4. ITR 4

Applicability:

• Individuals, Hindu Undivided Families (HUFs), and Partnership firms (excluding LLPs)
• Must be resident taxpayers
• Whose total income for the year includes:

 Eligible Income Types:

• Total income up to ₹50 lakh
• Business income under the presumptive taxation scheme:
  • Section 44AD (for small businesses)
  • Section 44AE (for goods vehicle owners)
• Professional income under Section 44ADA (for certain professions like doctors, lawyers, etc.)
• Income from salary or pension
• Income from one house property
  • (Loss brought forward or to be carried forward is not allowed)
• Income from other sources
  • (Excluding winnings from lottery or race horses)
• Long-term capital gains (LTCG) under Section 112A
  • Up to ₹1.25 lakh
  • With no brought-forward or carry-forward capital loss.

5. ITR 5

Applicability :

• Firms
• Limited Liability Partnerships (LLPs)
• Association of Persons (AOPs)
• Body of Individuals (BOIs)
• Artificial Juridical Persons (AJPs)
• Estate of a deceased person
• Estate of an insolvent
• Business trusts
• Investment funds

6. ITR 6

• Who Should File:
  Applicable to companies, excluding those claiming exemption under Section 11 (i.e., income from property held for charitable or religious purposes).
• Important Note:
  Filing of ITR-6 is mandatory via electronic mode only.

        7. ITR-7

• Who Should File:
  Persons (including companies) required to file a return under any of the following sections:

✅ Section-wise Analysis:

• Section 139(4A):

  For entities receiving income from property held under trust (wholly or partly) for charitable or religious purposes.

• Section 139(4B):

  Applicable to political parties whose total income exceeds the basic exemption limit (before claiming benefits under Section 139A).

• Section 139(4C):

  For specified institutions and associations such as:
  • Scientific research associations
  • News agencies
  • Associations or institutions under Section 10(23A) or 10(23B)
  • Universities, educational institutions, hospitals, or medical institutions

• Section 139(4D):

  For universities, colleges, and educational institutions not otherwise required to file under other sections.

• Section 139(4E):

  For business trusts not required to file returns under other provisions.

• Section 139(4F):

  For investment funds as referred to in Section 115UB, not covered under other filing provisions.

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