Adv Sukesh Sahdev
Quick Summary
Which ITR Form Should You File for AY 2025-26?
Choose Based on Your Income Source - Not Assumptions!
With updated ITR rules for Assessment Year 2025-26, here's a quick guide to avoid confusion, errors, and possible notices from the department:
ITR-1 (Sahaj)
- For resident individuals (not HUFs)
- Total income up to Rs 50 lakhs
- Income from:
- Salary/Pension
- One house property
- Other sources (interest, etc.)
Not for:
- Capital gains
- Business/professional income
- Directors in a company
- Unlisted equity shareholding
- Foreign assets/income
ITR-2
- For individuals & HUFs
- Income from:
- Salary/Pension
- Multiple house properties
- Capital gains
- Foreign assets/income
Not for business or professional income
ITR-3
For individuals & HUFs with:
- Income from business or profession (including consultancy, freelancing, stock/F&O/intraday trading)
- Income as a partner in a firm
- All other income sources (salary, house property, capital gains, etc.)
ITR-4 (Sugam)
- For Individuals, HUFs & Firms (non-LLP)
- Opting for Presumptive Taxation under:
- Section 44AD (Small business)
- Section 44ADA (Professionals like CA, doctors, lawyers)
- Section 44AE (Goods transport business)
- Income up to Rs 50L (for professionals) / Rs 2Cr (for businesses)
Not for:
- Foreign income/assets
- Directors in a company
- Unlisted shares
- Non-residents
AY 2025-26 - Updates to Keep in Mind
- New tax regime is the default; old regime is available only if opted for in return
- Enhanced reporting for exempt income, capital gains, and foreign assets
- Ensure selection matches your actual income type, not assumptions or shortcuts
Filing the wrong form = Notice + Delay in Refund + Legal Issues
DM if you're unsure which form suits your case.
FAQ :
The main criterion for choosing an ITR form is your actual income source, not assumptions or shortcuts.
ITR-1 (Sahaj) is for resident individuals (not HUFs) with a total income up to Rs 50 lakhs, whose income is from salary/pension, one house property, or other sources like interest.
Individuals and HUFs should file ITR-2 if their income includes salary/pension, multiple house properties, capital gains, or foreign assets/income, but not business or professional income.
Individuals and HUFs with income from business or profession, including consultancy, freelancing, or trading, should file ITR-3.
ITR-4 (Sugam) is for individuals, HUFs, and firms (non-LLP) opting for presumptive taxation schemes like Section 44AD, 44ADA, or 44AE, with specific income limits.
Filing the wrong ITR form can lead to a notice from the tax department, delays in refund processing, and potential legal issues.
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