Income Tax Return Overview (All Forms)

The Income Tax Department prescribes ITR forms through annual notifications under the Income Tax Act, 1961. The selection of the applicable form is the foundational step in return filing and errors at this stage result in defective return notices under Section 139(9), requiring rectification within fifteen days.

ITR-1, commonly known as Sahaj, was designed for resident individuals with total income up to Rs 50 lakh, income only from salary or one house property, interest income, and agricultural income not exceeding Rs 5,000. This form was not available to non-residents, individuals with business income, those holding foreign assets, or directors of companies. The simplicity of Sahaj made it the most widely used form, applicable to a large proportion of salaried employees.

ITR-2 covered resident and non-resident individuals and Hindu Undivided Families (HUFs) who did not have income from business or profession. It applied to those with capital gains from equity shares, mutual funds, property, or other assets, income from more than one house property, foreign income, foreign assets, or agricultural income exceeding Rs 5,000. Salaried taxpayers with equity MF redemptions required ITR-2 rather than ITR-1.

ITR-3 was the applicable form for individuals and HUFs carrying on a business or profession. F&O traders, full-time equity traders classified as running a business, and professionals such as doctors, lawyers, and consultants filed ITR-3. This form required disclosure of a balance sheet and profit and loss account if turnover exceeded the prescribed threshold, and mandatory tax audit under Section 44AB applied where applicable.

ITR-4, known as Sugam, served individuals, HUFs, and partnership firms (excluding LLPs) who opted for presumptive taxation under Sections 44AD, 44ADA, or 44AE. Small business owners and specified professionals with gross receipts under Rs 50 lakh (for 44ADA) or turnover under Rs 2 crore (for 44AD, extendable to Rs 3 crore under certain conditions) could use this simpler form.

ITR-5 applied to firms, LLPs, Association of Persons (AOP), Body of Individuals (BOI), artificial juridical persons, cooperative societies, and local authorities — essentially all non-individual non-company non-trust entities.

ITR-6 was mandatory for companies other than those claiming exemption under Section 11 (i.e., companies not operating as trusts or charitable institutions). Listed and unlisted companies, including one-person companies, filed ITR-6 electronically with digital signature.

ITR-7 applied to entities filing returns under Sections 139(4A) to 139(4F): charitable trusts, political parties, research associations, news agencies, educational institutions, hospitals, and similar entities claiming exemption under Sections 10 or 11. These entities also required FCRA compliance disclosures if receiving foreign contributions.