The process to file Income Tax Return (ITR) has begun for the assessment year 2025-26.
Taxpayers can now file their returns online using the ITR-1 and ITR-4 forms through the official Income Tax e-filing website.
If you are a salaried person, you should wait until you receive Form-16 from your employer before filing your return. Before you start, it’s important to know which ITR form you need to use.
Who Should Use Which ITR Form?
ITR-1 (Sahaj Form)
You can use this form if:
- Your total income in the year is less than ₹50 lakh.
- Your income comes from salary, pension, savings interest, rent from only one house, or farming income up to ₹5,000.
- You have long-term capital gains (profits from selling stocks, mutual funds, or digital assets) up to ₹1.25 lakh.
You cannot use ITR-1 if
- Your capital gains are more than ₹1.25 lakh.
- You earn income from business or profession.
- You own more than one house.
- You earn from lottery, horse racing, or foreign income.
- Your farming income is more than ₹5,000.
- You hold shares in an unlisted company.
For others, see below –
ITR-2 and ITR-4
Use ITR-2 if you have complex incomes such as income from business or profession, foreign income, more than one house, or you are a professional like a doctor or lawyer.
Use ITR-4 (Sugam Form) if you are an individual, Hindu Undivided Family (HUF), or a firm (except LLPs) with small business income, freelancing, consultancy, or retail income.
You should have opted for presumptive taxation and your total income should be up to ₹50 lakh.
You cannot use ITR-4 if you are an NRI, a company director, have income from more than one property, hold unlisted shares or deferred ESOP tax, or earn from lottery or horse racing.
