Simplified Guide: Which ITR Form to File for AY 2025–26

Seven ITR forms have been notified by the Central Board of Direct Taxes, which implies that proper selection is essential when determining tax compliance. Filing an incorrect form can result in a defective return under Section 139(9) or complete rejection of your filing

ITR-1 (Sahaj) suits individual residents with income up to ₹50 lakhs from salary, pension, one house property and other sources. Nevertheless, it does not cover the taxpayers who have capital gains, business income or foreign assets, so it can only be used by simple salaried people.

ITR-2 is used by individuals, HUFs who do not have business income but can include capital gains, foreign assets and partner income. ITR-3 serves business owners, including proprietorships, freelancers and professionals, while ITR-4 (Sugam) applies to presumptive taxation scheme beneficiaries with specific income limits.

ITR-5 includes firms, LLPs and associations, whereas ITR-6 is compulsory for all taxable companies. ITR-7 is applicable to trusts, political parties and educational institutions that make certain exemptions, as presented in the different provisions of the Income Tax Act.

Taxpayers must check their income sources before selecting ITR form. For expert guidance on ITR filing, consult Prakash K Prakash.