ITR Forms Explained: How to Select the Right One Based on Your Income – Find Out Here
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The income tax return (ITR) filing season for Assessment Year 2025-26 is now open. Every taxpayer, including salaried individuals, must file their returns using one of the seven ITR forms available online. Picking the correct form based on your income type is key to a smooth and accurate tax filing experience.
What is an ITR Form ?
An Income Tax Return (ITR) form is a standardized document that taxpayers submit to the Income Tax Department to declare their earnings and taxes paid for a financial year. It helps the government track income and tax compliance.
How to Decide Which ITR Form to Use?
The choice of ITR form depends on your income amount, the sources of your income, and your taxpayer category such as individual, Hindu Undivided Family (HUF), or company. The Central Board of Direct Taxes (CBDT) issues different forms tailored for these groups each year.
Overview of Popular ITR Forms
ITR 1 (SAHAJ):
This form suits resident individuals with income up to ₹50 lakh from simple sources like salary, pension, one house property, and interest income. It’s ideal for regular salaried employees with straightforward finances. However, if your income exceeds ₹50 lakh, or you earn income from abroad, or have assets outside India, this form won’t apply. Also, income from agriculture exceeding ₹5,000 disqualifies you from using ITR 1.
ITR 2:
Designed for individuals or HUFs without business or professional income but with more complex earnings. This includes those with income above ₹50 lakh, multiple house properties, capital gains, or foreign income. If you earn through business, profession, or receive commissions or remuneration from a partnership firm, ITR 2 is not the right choice.
Notably, the Income Tax Department recently launched an updated Excel utility for ITR 2, available since March 25, 2025. This tool simplifies filing revised returns under Section 139(8A), making it easier for salaried taxpayers and pensioners to correct their submitted returns.
Other ITR Forms
Apart from ITR 1 and ITR 2, there are five additional forms tailored to various taxpayer profiles, including businesses, professionals, and companies. Each form is designed to capture the nuances of different income sources and tax obligations.
Filing your tax return with the correct ITR form is essential for compliance and hassle-free processing. Identify your income sources and category first, then choose the form that fits your profile. The Income Tax Department’s e-filing portal makes it easy to file online once you select the right form.
What is an ITR Form ?
An Income Tax Return (ITR) form is a standardized document that taxpayers submit to the Income Tax Department to declare their earnings and taxes paid for a financial year. It helps the government track income and tax compliance. How to Decide Which ITR Form to Use?
The choice of ITR form depends on your income amount, the sources of your income, and your taxpayer category such as individual, Hindu Undivided Family (HUF), or company. The Central Board of Direct Taxes (CBDT) issues different forms tailored for these groups each year.Overview of Popular ITR Forms
ITR 1 (SAHAJ):
This form suits resident individuals with income up to ₹50 lakh from simple sources like salary, pension, one house property, and interest income. It’s ideal for regular salaried employees with straightforward finances. However, if your income exceeds ₹50 lakh, or you earn income from abroad, or have assets outside India, this form won’t apply. Also, income from agriculture exceeding ₹5,000 disqualifies you from using ITR 1. ITR 2:
Designed for individuals or HUFs without business or professional income but with more complex earnings. This includes those with income above ₹50 lakh, multiple house properties, capital gains, or foreign income. If you earn through business, profession, or receive commissions or remuneration from a partnership firm, ITR 2 is not the right choice.Notably, the Income Tax Department recently launched an updated Excel utility for ITR 2, available since March 25, 2025. This tool simplifies filing revised returns under Section 139(8A), making it easier for salaried taxpayers and pensioners to correct their submitted returns.
Other ITR Forms
Apart from ITR 1 and ITR 2, there are five additional forms tailored to various taxpayer profiles, including businesses, professionals, and companies. Each form is designed to capture the nuances of different income sources and tax obligations. Filing your tax return with the correct ITR form is essential for compliance and hassle-free processing. Identify your income sources and category first, then choose the form that fits your profile. The Income Tax Department’s e-filing portal makes it easy to file online once you select the right form.
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