Know about the Types of ITR and Which ITR to file for FY 2024-2025

Filing the Income Tax Return (ITR) is a crucial responsibility of every taxpayer under the Indian taxation system. Understanding the different types of ITR forms, their respective applicability, and due dates can thus better assist all taxpayers in complying timely to avoid any penalties. In this blog, we are going to cover the types of ITR forms, their due dates, and to which category of taxpayers each of these ITR forms apply, especially for salaried individuals.

What is an Income Tax Return (ITR)?

An ITR refers to an Income Tax Return to be filed for reporting income earned during a specific financial year with the Income Tax Department of India. It is an instrument for declaring the taxpayer's income, claiming a respective number of deductions, and paying taxes thereon. Filing the ITR is mandatory for individuals and businesses with an income exceeding the basic exemption limit prescribed by the government.

Filing an ITR has several benefits, such as:

• Claiming tax refunds

• Applying for loans and visas

• Avoiding penalties and legal issues

• Carrying forward losses for tax benefits

Different Types of ITR Forms in India

The Income Tax Department has prescribed different ITR forms based on the taxpayer's income, business type, and other financial factors.

As of the Assessment Year 2025-26, there are seven types of ITR forms:

• ITR-1- Sahaj-For Salaried Individuals : Suitable for individuals earning up to ₹50 lakh- this comprises income from salary, one house property, other sources interest income, and agricultural income within a span of ₹5,000. Ineligible individuals include those with business income, directors of the company and individuals with unlisted equity shares.

• ITR-2- For Individuals and HUFs (No Business Income) : Applicable for individuals and HUFs earning salary or pension income, income from more than one house property, capital gains through stocks, mutual funds, real estate, etc., foreign assets or income, agricultural income above ₹5,000. Such individuals with business or professional income will not be eligible.

• ITR-3- For Business Owners and Professionals : For Business Owners and Professionals: For individuals and HUFs affected by business or professional income, salary, income by way of house property, capital gains, foreign income, and shareholders of a company.

• ITR-4- Sugam : Presumptive Taxation Scheme-General individuals, HUFs and firms with business incomes under the PTS will be able to avail the benefit of earning up to ₹50 lakh, incomes from freelancing and professions should generally be kept at ₹50 lakh to obtain suitable benefits, and agriculture income would be kept up to ₹5,000, as per PTS. Not Eligible: Those earning above ₹50 lakh; those having foreign assets or foreign income.

• ITR-5- Applicable to LLPs, Firms, AOPs, and BOIs : This form is for limited liability partnerships, associations of persons, firms, and business trusts.

• ITR-6- For Companies, except those claiming exemptions under Section 11 : This form pertains to those companies who are not claiming exemption with respect to charitable or religious purposes under Section 11.

• Applicable to Trusts and Non-Profit Organizations : This includes trusts, NGOs, and political parties, which are filing returns under Section 139(4A), 139(4B), 139(4C), and 139(4D).

Which ITR Form to File for Salaried Individuals?

If you are a salaried employee, the correct ITR form depends on your income sources:

ITR-1 (Sahaj) – For Most Salaried Individuals

Applicable if:

• Total income is up to ₹50 lakh

• Income sources include salary, one house property, and other sources (e.g., interest income)

• Agricultural income is up to ₹5,000

• No capital gains or business/professional income.

ITR-2 – For Salaried Individuals with Additional Income Sources

Applicable if:

• Income exceeds ₹50 lakh.

• Having multiple house properties.

• Earning capital gains or foreign income/assets.

• Holding directorship in a company or unlisted equity shares.

ITR-3 – For Salaried Individuals with Business/Professional Income

Applicable if:

• Salary income exists, but you also have income from business/profession

• You are a partner in a firm earning business income

Due Dates for ITR Filing (FY 2024-25, AY 2025-26)

Late Filing Penalty for ITR

If you fail to file your ITR before the due date, penalties may apply:

• ₹5,000 (if filed after the due date but before 31st December 2024)

• ₹1,000 (for taxpayers below the income of ₹5 lakhs)

How to File ITR Online?

Filing ITR online (e-filing) is simple and can be done via the Income Tax e-Filing Portal :

Step-by-Step Guide for ITR Filing

• Firstly, go to the official e-filing portal: www.incometax.gov.in.

• Log in by entering either the PAN or Aadhaar number or the user ID.

• From the choices, select 'File Income Tax Return,' then pick a suitable assessment year.

• Select the applicable ITR form (ITR-1, ITR-2, etc.)

• Document the various heads of income (salary, deductions, tax payments, etc).

• Validate and preview the return before proceeding to submission.

• E-verify the return using Aadhaar OTP, net banking, or DSC.

Important Tips for Hassle-Free ITR Filing

• Check Form 16 and AIS/TIS (Annual Information Statement & Taxpayer Information Summary) for accuracy.

• Verify pre-filled data on the e-filing portal before submitting.

• Claim deductions under Section 80C, 80D, 80G, etc., to reduce taxable income.

• Report all income sources, including fixed deposits, rental income, and capital gains.

• E-verify the ITR after filing to avoid rejection.

Conclusion

Filing ITR is the key duty of every taxpayer. Select the correct ITR form, paying attention to reporting income and compliance with tax requirements. Generally, salaried individuals use ITR-1 or ITR-2 while business persons and freelancers have to file ITR-3 or ITR-4. The due date is 31 July for individuals, and that's when those filing are expected to do it without attracting any penalties.

There are different types of ITR forms available and the knowledge of their applicability will help you in filing the returns easily and availing the maximum benefits thereafter. You may get in touch with a tax expertst in case of any doubts, and they can help you understand your selections. Moreover, you can also take the help of an income tax calculator to calculate your tax liability