ITR Forms Explained: Which One Should You Choose Based On Your Income? Check Details Here

New Delhi: The ITR submitting season for the Assessment Year 2025-26 has begun. Just like annually all taxpayers together with salaried folks can record their returns the use of one of the crucial seven ITR paperwork to be had at the Income Tax Department’s e-filing portal. You can select the shape that fits your source of revenue sort and entire your submitting simply on-line.

What is an ITR Form?

An ITR (Income Tax Return) shape is a report utilized by taxpayers to proportion main points in their source of revenue and the taxes paid with the Income Tax Department for a particular monetary 12 months.

Which ITR Form Should You File?

Each 12 months, the Central Board of Direct Taxes (CBDT) releases other ITR paperwork for more than a few kinds of taxpayers — together with salaried folks, enterprise house owners, and firms. The shape you want to record depends upon your overall source of revenue, the kind of source of revenue you earn, and your taxpayer class (corresponding to person, HUF, or corporate).

ITR Form Types and Who Can Use Them

ITR 1 (SAHAJ) is supposed for resident folks whose overall source of revenue is as much as Rs 50 lakh. This source of revenue can come from assets corresponding to wage or pension, one space assets, and different assets like pastime. It is perfect for moderate salaried workers with easy source of revenue main points.

However, no longer everybody can use ITR 1. Individuals incomes greater than Rs 50 lakh every year, the ones with source of revenue from out of the country, or who personal property out of doors India don’t seem to be eligible to make use of this manner. Additionally, if an individual earns greater than Rs 5,000 from agriculture in a 12 months, they can not record the use of ITR 1.

ITR 2 is for people or Hindu Undivided Families (HUFs) who would not have source of revenue from enterprise or occupation. It is appropriate for the ones whose overall source of revenue exceeds Rs 50 lakh and contains source of revenue from wage, more than one space homes, capital positive aspects, or overseas source of revenue.

On the opposite hand, folks or HUFs who earn from enterprise or skilled actions can not use ITR 2. This shape additionally does no longer observe to these incomes fee, bonuses, or remuneration from a partnership company.

The Income Tax Department not too long ago launched an up to date Excel-based application for ITR 2. Launched on March 25, 2025, this new model lets in taxpayers to record revised returns beneath Section 139(8A), serving to them make corrections if wanted. This is especially useful for salaried folks, pensioners, and different non-business taxpayers who might wish to revise their submissions.

Besides ITR 1 and ITR 2, there are 5 different ITR paperwork to be had, every designed to fit other classes of taxpayers relying on their source of revenue assets and tax profiles.