Which ITR to File? Understanding ITR Forms AY 2025-26

Filing your Income Tax Return (ITR) is more than a compliance requirement — it’s a key financial responsibility that ensures smooth financial planning, eligibility for loans, and staying tax-compliant. But for Assessment Year (AY) 2025–26, one common question among taxpayers is: “Which ITR form do I need to file for 2025-26?” This guide will help individuals, salaried professionals, business owners, and HUFs determine the correct ITR form based on income source, nature of occupation, and other criteria.

What Is an ITR Form?

An Income Tax Return (ITR) form is a document used to declare your income, tax liabilities, and refund claims to the Income Tax Department. There are different forms for different types of taxpayers, and choosing the wrong form may lead to rejection or penalties.

Why Choosing the Right ITR Form Matters?

Selecting the correct ITR form is mandatory for:

Avoiding penalties under Section 234F

Ensuring accurate processing of returns

Avoiding scrutiny or rejection

Seamless claiming of deductions and refunds

For AY 2025-26, the Central Board of Direct Taxes (CBDT) has retained most ITR forms with minor changes. Let’s dive into who needs to fill which form.

List of ITR Forms for AY 2025-26

1. ITR-1 (Sahaj)

Who can file:

Resident individuals (other than not ordinarily resident)

Total income up to ₹50 lakh

Income from: salary, one house property, other sources (like interest), and agricultural income up to ₹5,000

Who cannot file:

Directors in a company

Individuals who have invested in unlisted equity shares

Having capital gains or foreign income/assets

Best for: Salaried individuals or pensioners with a simple income structure.

2. ITR-2

Who can file:

Individuals and HUFs not having income from business or profession

Income includes: salary, capital gains, more than one house property, foreign income, dividend, etc.

Who cannot file:

Individuals earning from a business or profession under proprietorship

Best for: Investors, NRIs, or those with capital gains.

3. ITR-3

Who can file:

Individuals and HUFs having income from business or profession (proprietorship)

Income includes salary, capital gains, house property, and other sources too.

Best for: Business owners, freelancers, and professionals like doctors, consultants, and engineers.

4. ITR-4 (Sugam)

Who can file:

Resident Individuals, HUFs, and Firms (other than LLP)

Total income up to ₹50 lakh

Opting for the Presumptive Income Scheme under Section 44AD, 44ADA, or 44AE

Who cannot file:

If income includes capital gains, foreign income, or more than one house property

Best for: Small business owners and professionals under presumptive taxation.

5. ITR-5

Who can file:

Firms, LLPs, AOPs, BOIs, and others are not eligible for ITR-7

Best for: Partnership firms, LLPs

6. ITR-6

Who can file:

Companies not claiming exemption under Section 11 (income from property held for charitable/religious purposes)

7. ITR-7

Who can file:

Entities, including trusts, political parties, institutions, etc., that are required to file under Sections like 139(4A), 139(4B), 139(4C), or 139(4D)

How to Fill ITR Form AY 2025-26

Offline mode: For super senior citizens (80+ years), ITR-1 or ITR-4 can be filed manually.

Online mode: Most users are required to e-file via the Income Tax India portal.

To fill ITR Form AY 2025-26, follow these steps:

Log in to the portal using PAN.

Select the applicable ITR form.

Pre-fill data using Form 26AS and AIS.

Verify and submit with e-verification (Aadhaar OTP, Net Banking, or EVC).

Common Mistakes to Avoid While Filing ITR

Selecting the wrong ITR form

Not reporting all income (e.g., interest, dividends)

Mismatching TDS and income declared

Skipping e-verification

Claiming ineligible deductions

Important Due Dates for AY 2025-26

Category -Due Date

Individuals & HUFs - 31st July 2025

Audit Cases (Business/Profession) -31st October 2025

Revised Return -31st December 2025

Who Needs to File ITR AY 2025-26?

You must file an ITR if:

Gross total income exceeds ₹2.5 lakh (₹3 lakh for senior citizens)

You want to claim a refund.

You have foreign assets or income.

You’re carrying forward capital loss.s

TDS has been deducted, and a refund is due

You hold crypto asse.ts

ITR Filing Benefits (Even If Not Mandatory)

Loan & visa processing

Income proof for various purposes

Carry forward losses

Claim tax refunds

Avoid penalties and notices.

Conclusion

Choosing the right ITR form to fill for AY 2025-26 is critical to ensure your tax filing is accurate, accepted, and processed smoothly. Whether you're a salaried employee, business owner, or professional, match your income sources with the ITR category to file the correct return. For most individuals, it will be ITR-1, ITR-2, or ITR-3. Filing on time and correctly gives you peace of mind and better financial transparency.

Top 5 FAQs – Which ITR to File AY 2025-26

1. Which ITR should a salaried person file for AY 2025-26?

If your total income is under ₹50 lakh with no capital gains or business income, you should file ITR-1.

2. I have stock market gains — which ITR form is applicable?

You must file ITR-2 if you have capital gains but no business income.

3. Can a freelancer file ITR-4 under presumptive taxation?

Yes, professionals like freelancers can file ITR-4 under Section 44ADA if their income is under ₹50 lakh.

4. What if I file the wrong ITR form?

Your return may be treated as defective or invalid. You might be required to file a revised return.

5. Is it mandatory to file ITR if the income is below ₹2.5 lakh?

No, but it is recommended if TDS was deducted, to claim a refund or maintain income proof.