ITR Form - Income Tax Return Form

What is ITR?

An Income Tax Return (ITR) is an important document filed with the Income Tax Department of India, which reports an individual’s or entity’s income, deductions, and taxes for a financial year. It is mandatory for those earning above the exempt limit. Filing ITR ensures compliance, allows tax refunds, and serves as income proof for loans or visas.

NOTE: The due date for filing is as follows- 

• Without audit: July 31 of the assessment year.
• With audit: October 31 of the assessment year.

Why Do You Have to File ITR?

Following are the key reasons for an individual to file their Income Tax Returns (ITR):

• Legal Obligation: Filing ITR is mandatory for individuals whose income exceeds the taxable limit.
• Avoid Penalties: Delayed or non-filing can result in fines, with penalties of up to ₹5,000, or ₹1,000 if income is below ₹5 lakh.
• Claim Refunds: If you’ve paid more tax than required, filing ITR allows you to claim refunds.
• Carry Forward Losses: Timely filing lets you carry forward capital or business losses to offset future gains, reducing tax liabilities.
• Loan Processing: Financial institutions require ITR to assess income for loan approval (home, personal, etc.).
• Tax Compliance: Filing ITR ensures you comply with government tax regulations.
• Document for Future: ITR serves as proof of income for purposes like visa applications and other documentation needs.
• Social Security Benefits: For those receiving government pensions, filing ITR is essential for continuing the pension.
• Planning Ahead: Early filing helps with financial planning and understanding your tax obligations for the next year.
• Verification Period: Filing on time provides 30 days for verification and necessary corrections.

What is the Eligibility Criteria to File ITR?

The following categories of individuals and entities qualify for filing an ITR in India:

• Individual Citizens (including NRIs): With income above exemption limits.
• HUF (Hindu Undivided Family): If the total income of an HUF is above certain limit.
• Firms and LLPs: All partnerships and limited liability partnerships.
• Associations of Persons (AoPs): Groups of individuals working together.
• Bodies of Individuals (BoIs): Similar to AoPs but structured differently.
• Artificial Juridical Persons: Includes trusts and societies.
• Cooperative Societies: Registered cooperative entities.
• Local Authorities: Municipalities and other local governments.

Who Should File Income Tax Returns (ITR) in India?

In India, it is mandatory for certain categories of taxpayers to file ITR, depending on their income and financial activities. The following list is an in-depth look at the key conditions for filing ITR in India:

• Income Above Taxable Limit: If your gross total income exceeds the basic exemption limit, filing an ITR becomes compulsory. This applies to various categories of taxpayers based on their age and income.

• Basic Exemption Limit: The basic exemption limit for different age groups is as follows:

• Freelancers and Self-Employed: Individuals earning income through freelancing or self-employment must file their ITR, regardless of their income level.
  • For Example: A freelancer earning ₹2 lakh from various clients in a year must file ITR to comply with tax laws, even though the income is below the basic exemption limit.
• Income from Multiple Sources: If you have income from various sources such as salary, business profits, capital gains, or rental income, filing ITR is mandatory.
  • For Example: A person earning ₹4 lakh salary and ₹1 lakh from capital gains must file ITR since income from multiple sources exceeds the exemption limit.
• Claiming Tax Deductions: If you are claiming tax deductions under sections like 80C (for investments) or 80D (for health insurance), filing an ITR is necessary to avail of these tax benefits.
  • For Example: An individual claiming ₹1.5 lakh under Section 80C for PPF investments needs to file ITR to ensure the deductions are considered for tax reduction.
• High-Value Transactions: If you engage in high-value transactions, such as buying property, filing an ITR becomes mandatory, even if your income falls below the taxable limit.
  • For Example: A person purchasing property worth ₹80 lakh must file ITR to report this high-value transaction, which could be scrutinized by tax authorities.
• Filing ITR to Claim a Refund: If you have paid excess tax and are eligible for a refund, you must file an ITR to claim the refund, regardless of your income level.
  • For Example: A salaried person whose employer deducted tax at a higher rate than required and is eligible for a ₹20,000 refund must file an ITR to receive the refund.
• Carrying Forward Losses: ITR Filing Requirement: To carry forward business or capital losses to offset future gains, you must file ITR for the year in which the loss occurred.
  • For Example: A person with ₹50,000 business loss in FY 2023-24 must file ITR to carry forward the loss and set it off against future profits.
• Foreign Income or Assets: Individuals with income or assets outside India are required to file ITR, even if they are not residents in India.
  • For Example: A person with rental income from a property in the USA and an overseas bank account must file ITR in India to disclose the foreign income and assets.
• Mandatory Filing Conditions (Even if Income is Below Exemption Limit): Certain conditions trigger mandatory filing of ITR, even if your income is below the exemption limit. These include:

  Condition	Requirement
  Deposits in current bank account	More than ₹1 crore
  Deposits in savings bank account	More than ₹50 lakh
  Expenditure on foreign travel	More than ₹2 lakh
  Electricity consumption	More than ₹1 lakh
  TDS/TCS (Tax Deducted at Source/Tax Collected at Source)	More than ₹25,000 (₹50,000 for senior citizens)
  Business turnover	More than ₹60 lakh
  Professional income	More than ₹10 lakh

• For Example: A person depositing ₹2 crore in their current bank account must file ITR, even if their income is below ₹2.5 lakh.

 What are the Government Specified Exemptions for ITR Filing?

The Central Government has the authority to exempt certain individuals or groups from filing ITR, beyond the existing exemptions. 

• For Example- The following categories are exempted from Income Tax Return filing-
  • Income Below Basic Exemption Limit: Individuals with income below the basic exemption limit are not required to file ITR.
  • Senior Citizens (60 years & above): If their income is below ₹5 lakh (as per old tax regime) and there are no other complications, they are exempt.
  • Retired Persons with Pension: Those who receive only pension income and whose total income is below the exemption limit do not need to file.
  • HUF (Hindu Undivided Family): If the total income of an HUF is below ₹2.5 lakh, they do not need to file.
  • Agricultural Income: If the total income (excluding agricultural income) is below the exemption limit, agricultural income doesn’t require filing.
  • Individuals with Income Only from Pension or Interest: Those earning from pension or interest below ₹2.5 lakh don’t need to file, unless they have a pending tax liability.
• Current Status: As of 2025, no new categories have been notified by the government for exemption from filing income tax returns.

What are the Types of ITR-Form?

The following list shows the different types of ITR Forms:

• ITR-1 (Sahaj): For individuals with income from salary, pension, or one house property, and income up to ₹50 lakh.
• ITR-2: For individuals and HUFs with income from more than one house property or capital gains, but not from business/profession.
• ITR-3: For individuals and HUFs with income from business or profession.
• ITR-4 (Sugam): For individuals, HUFs, and firms (other than LLP) opting for presumptive taxation under sections 44AD, 44ADA, or 44AE.
• ITR-5: For firms, LLPs, associations of persons (AOP), and bodies of individuals (BOI).
• ITR-6: For companies other than those claiming tax exemptions under section 11.
• ITR-7: For persons including companies required to file return under sections 139(4A), 139(4B), 139(4C), or 139(4D).

Which ITR Form Should You File for FY 2024-25 (AY 2025-26)?

In India, there are seven types of Income Tax Return (ITR) forms designed for different taxpayer categories, including individuals and organizations:

• ITR-1 (Sahaj):

  • For residents with income from Salary, Pension plans, one House Property, and Other Sources (except Lottery/Race Horses).
  • Agricultural income up to ₹5,000 is allowed.
  • ITR-1 Cannot be Used If:
    • Income exceeds ₹50 lakh
    • Agricultural income > ₹5,000
    • Taxable capital gains
    • Business/profession income
    • Multiple house properties
    • Director in a company
    • Foreign assets or income
    • Brought forward losses
    • Tax deferred on ESOP

  Note: Excludes investments in unlisted shares and foreign assets.

• ITR-2:

  • For individuals/HUFs with income from Salary, Pension, House Property, Capital Gains, Other Sources (including Lottery/Race Horses), or Foreign income.
  • Agricultural income > ₹5,000 allowed.
  • ITR-2 Cannot be Used If:
    • Business/profession income (use ITR-3 or ITR-4)
  • Note: Can include income from multiple house properties, assets abroad, and investment plans in unlisted equity shares.

• ITR-3:

  • For individuals/HUFs with income from business/profession.
  • Includes income from Salary/Pension, House Property, and Other Sources.
  • Must File ITR-3 If:
    • Income from a proprietary business or profession not opting for presumptive income.
    • Partner in a firm.
    • Investments in unlisted shares.
  • Note: Individuals or HUFs not eligible for ITR-1, ITR-2, or ITR-4 should use ITR-3.

• ITR-4 (Sugam):

  • For residents with business or professional income under presumptive income schemes (Section 44AD, 44AE, 44ADA).
  • Includes income from Salary/Pension, House Property, and Other Sources (up to ₹50 lakh).
  • ITR-4 Cannot be Used If:
    • Total income exceeds ₹50 lakh
    • Multiple house properties
    • Foreign assets or income
    • Director in a company
    • Investments in unlisted equity shares
    • Tax deferred on ESOP
  • Note: Freelancers with gross receipts < ₹50 lakh can opt for this scheme.

• ITR-5:

  • For firms, LLPs, AOPs, BOIs, and other business entities.
  • Suitable for business trusts and investment funds.

  Note: Applies to non-individual entities.

• ITR-6:

  For companies other than those claiming exemption under Section 11 (charitable/religious purposes).

  Note: Must be filed electronically.

• ITR-7:

  For entities required to file returns under Sections 139(4A) to 139(4F) (trusts, political parties, universities, research institutions, etc.).

  Note: Applicable to entities with specific legal obligations or exemptions.

How to Get ITR Forms Online?

By following any of the two methods mentioned below, you can easily access and download the necessary ITR forms from the Income Tax Department's official website:

• Method 1: Downloads Section

  • Visit the Official Website: Go to the Income Tax Department homepage.
  • Access Tax Laws and Rules: Click on ‘Tax Laws and Rules’ from the main menu.
  • Navigate to Forms Section: Under this tab, select ‘Form/Downloads’ and then click on ‘Income Tax Forms’.
  • Choose the Required ITR Form: Identify the specific ITR form (e.g., ITR-1, ITR-2, ITR-3) that matches your income type and eligibility.
  • Initiate the Download: Click on the link for your chosen form. You will see three options:
    • Download as PDF
    • Open as a fillable form
    • E-file the form
  • Review Instructions: It is recommended to download and read the accompanying instructions or guidelines for accurate form filling.

• Method 2: Quick Access Section

  • Visit the Official Website: Go to the homepage of the Income Tax Department official website.
  • Locate the Quick Access Section: On the homepage, find the ‘Quick Access’ section.
  • Select ‘Income Tax Forms’: Click on the ‘Income Tax Forms’ link available in the Quick Access options.
  • Choose the Required ITR Form: Browse the list of forms and select the specific ITR form (e.g., ITR-1, ITR-2, ITR-3) based on your income type and eligibility.
  • Download the Form: Click on the download link for your selected ITR form. The form will typically be in PDF format or as an offline utility (Excel/Java).
  • Review Guidelines:: Download and review the attached instructions or guidelines for filling the form correctly, if available.

What are the Benefits of Filing Income Tax Form?

The key benefits of filing your Income Tax Forms are as follows:

• Legal Compliance: Filing Income Tax Returns (ITR) is mandatory if your income exceeds the basic exemption limit. It ensures you follow the law and avoid penalties.
• Claim Tax Refunds: If you have paid excess tax through TDS or advance tax, filing ITR allows you to claim a refund easily.
• Proof of Income: Your ITR serves as a legal proof of income, which is essential for financial verifications like applying for loans or visas.
• Carry Forward Losses: Filing ITR helps you carry forward business or capital losses, which can be adjusted against future income.
• Avoid Penalties: Filing your ITR within the deadline protects you from late filing fees and other penalties imposed by the Income Tax Department.
• Eligibility for Loans: Banks and financial institutions often require ITR documents as proof of income when you apply for loans like home, car, or personal loans.
• Quick Visa Approvals: Many countries require ITR documents for visa applications, ensuring faster and smoother visa processing.
• Build Financial Credibility: Filing your ITR regularly showcases financial responsibility and improves your creditworthiness.
• Access Tax Benefits: Filing ITR allows you to claim various deductions and exemptions under the Income Tax Act, reducing your taxable income.
• Required for Government Tenders: Submitting ITR filings is often necessary to participate in government tenders and contracts.

Conclusion

Choosing the correct ITR form is essential for accurate and hassle-free tax filing. Understand your income sources, eligibility, and exemptions before selecting the right form. Filing online through the income tax e-filing portal is quick and user-friendly. Remember, timely and accurate filing helps avoid penalties and ensures compliance with tax laws.