Taxpayers are required to choose an ITR form and file their returns based on their total income, nature of income, and the taxpayer categories, such as individuals, Hindu Undivided Family (HUF), companies, etc.
ITR Filing for Assessment Year 2025-26:
Income tax return (ITR) filing season is here. Like every year, all taxpayers, including salaried individuals, will be able to file their tax returns using one of the seven ITR forms currently available. Currently, there are 7 ITR forms available for taxpayers on the department’s e-filing portal and assessees can use any one of them to complete their tax filing obligation.
What is an ITR form?
Taxpayers report to the Income Tax Department about the income earned during a particular financial year and taxes paid through an ITR form.
Which ITR form should taxpayers file?
The Central Board of Direct Taxes (CBDT) every year notifies different ITR forms for tax filing by taxpayers across categories, including salaried and business class. Taxpayers are required to choose an ITR form and file their returns based on their total income, nature of income, and the taxpayer categories, such as individuals, Hindu Undivided Family (HUF), companies, etc.
Types of ITR Forms & Eligibility
File ITR 1 (SAHAJ)
Who is eligible to file ITR 1?
This form can be used by average salaried employees or residents whose total income is up to ₹50 lakh from sources such as salary/pension, one house property and other sources.
Who is not eligible to file ITR 1?
The ITR-1 form cannot be used by a person who has an asset outside India or who is earning income from abroad. Also, those individuals whose annual income is more than ₹50 lakh cannot use this form. Those with an annual income of more than ₹5,000 from agriculture are not allowed to file ITR 1.
Who can file ITR 2?
ITR 2 form can be filed by individuals or HUFs who do not have income under the head of profits and gains of business or any profession. Individuals and HUF with income exceeding ₹50 lakh in a financial year should file this form.
Who is not eligible to file ITR 2?
Those individuals or HUF, whose total income for the year includes income from profit and gains from business or profession, cannot file ITR 2. Also, those taxpayers who have earnings from interest, salary, bonus, etc. Those who earn income from commissions or remunerations from a partnership firm shall not file ITR 2.
What changes does the government make in form ITR 2?
The Income Tax Department recently released an updated version of an Excel-based utility for filing ITR-2. The updated utility has been introduced for individuals and HUFs who are not dependent on income from any business or profession.
The new update was launched on March 25, 2025. It provides the facility to file revised returns under section 139 (8A), allowing individuals to make corrections in their return if required. This helps salaried employees, pensioners, and other non-business taxpayers to make return filing easier.
Note: Apart from these two forms, there are five other ITR forms available, each designed to cater to different categories of taxpayers based on their income source.
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