NewDelhi: Taxpayers filing returns for FY 2025–26 must choose the correct ITR form based on income type, total earnings, and assets. ITR-1 suits salaried individuals with simple income, while ITR-2 covers capital gains and multiple properties. ITR-3 is for business owners and professionals, and ITR-4 applies to presumptive taxation users. Checking updated rules and verifying details before submission helps avoid defective returns.
Before choosing an ITR form, first know that for FY 2025–26 (income earned between April 1, 2025 and March 31, 2026), you will file your return for AY 2026–27. Even though the new Income Tax Act, 2025 has come into force, taxpayers will still file returns for this period under the old Income Tax Act, 1961. Terms like “Assessment Year” and “Previous Year” will continue for this filing cycle.
ITR-1 is meant for resident individuals whose total income is up to Rs 50 lakh. It is suitable if income comes from:
Salary or pension
One house property
Other sources like interest income
Agricultural income up to Rs 5,000
If you have capital gains, foreign assets, business income, or income from more than one house property, you cannot use ITR-1.
Choose ITR-2 if you are an individual or HUF with:
Capital gains from shares, mutual funds, or property
More than one house property
Foreign income or foreign assets
Agricultural income above Rs 5,000
Income above Rs 50 lakh
This form is for people who do not have business or professional income. It is commonly used by investors and high-income salaried taxpayers.
ITR-3 applies to individuals and HUFs earning income from:
Business or profession
Freelancing or consultancy
Proprietorship income
Intraday trading or F&O trading
Partner income from a partnership firm
Doctors, lawyers, consultants, traders, and freelancers usually fall under this category.
ITR-4 is for taxpayers opting for presumptive taxation under Sections 44AD, 44ADA, or 44AE. It is generally used by:
Small business owners
Professionals like doctors, architects, consultants
Transport operators
This form is allowed only if total income is up to Rs 50 lakh and conditions of presumptive taxation are met.
For AY 2026–27, some reporting requirements have changed. A secondary address field has been added, and capital gains reporting has been simplified by removing earlier bifurcation rules in some forms. Representative assessee details have also been rationalised. Taxpayers should carefully review the updated notified ITR forms before filing.
Before filing:
Match Form 16 with AIS/Form 26AS details
Verify bank interest and TDS entries
Check capital gains if you sold shares/property
Confirm old vs new tax regime choice
Ensure the correct ITR form is selected because wrong filing may lead to defective return notices
The normal deadline for non-audit taxpayers for AY 2026–27 remains July 31, 2026.
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