Outlook Business Desk
The deadline to file Income Tax Returns for the financial year 2025–26 is 15 September 2025 for taxpayers whose accounts need to be audited. Choosing the right ITR form depends on your income type, sources, and financial details. Here’s how to get it right.
Filing the wrong ITR form can lead to defaults, tax notices, and even penalties. Each ITR form is tailored for specific income brackets and types. Understanding this early helps avoid costly mistakes and ensures smooth verification.
ITR-1 is for individuals earning up to ₹50 lakh from salary, one house, or interest. It also allows small agricultural income and certain capital gains. However, it's not valid if you have foreign assets, directorship, unlisted shares, or short-term capital gains.
ITR-2 suits individuals and Hindu Undivided Families (HUFs) with income from salary, capital gains, or multiple houses—but not from business or profession. It covers cases that fall outside the simpler ITR-1 format.
ITR-3 is for individuals and HUFs earning income from business or profession, especially if they maintain books of accounts. It also applies to those with unlisted equity shares. If you're not eligible for ITR-1, 2, or 4, this form applies.
ITR-4 (Sugam) is meant for individuals, HUFs, and firms (excluding LLPs) opting for presumptive taxation under Sections 44AD, 44ADA, or 44AE. It offers simplified return filing but only for those meeting specific eligibility conditions under the presumptive income scheme.
Individuals cannot file ITR-4 if they are directors in a company, own foreign assets, have overseas income, hold unlisted shares, or if their long-term capital gains exceed ₹1.25 lakh under Section 112A. Also, if total income exceeds ₹50 lakh, they must file ITR-2 or ITR-3.
Before filing your income tax return, ensure your income type matches the correct ITR form. Verify eligibility and organise key documents early to avoid errors and delays in processing.