Complete Guide to ITR Forms: Types, Uses & Choose Right One

What is an ITR Form?

ITR stands for Income Tax Return.
An ITR Form is a document you submit to the Income Tax Department of India to declare your:

Income (from all sources)
Taxes paid
Refunds claimed (if any)
Deductions (like under 80C, 80D, etc.)

You file this every year, usually between April and July, to comply with the law and keep your financial records in order.

Income Tax Return (ITR) Forms – Explained Simply

There are 7 ITR forms (ITR-1 to ITR-7). The form you need depends on:

Type of taxpayer (individual, HUF, firm, company, etc.)
Nature of income (salary, business, capital gains, etc.)
Income amount

Quick Comparison Table

ITR Form	Who Should Use It	Income Sources Allowed	Common For
ITR-1 (Sahaj)	Resident individuals (income ≤ ₹50 lakh)	Salary, 1 house, interest	Salaried, pensioners
ITR-2	Individuals/HUFs (no business)	All in ITR-1 + capital gains, multiple houses, foreign assets	Investors, high-income earners
ITR-3	Individuals/HUFs with business/profession income	Business/profession, all in ITR-2	Freelancers, consultants, shop owners
ITR-4 (Sugam)	Individuals, HUFs, firms (non-LLP) under presumptive scheme	Presumptive business/profession income (Sec 44AD/ADA)	Small traders, professionals
ITR-5	Firms, LLPs, AOPs, BOIs	All business/profession income	Partnerships, LLPs
ITR-6	Companies (except those claiming Sec 11 exemption)	Business/profession income	Pvt Ltd, public companies
ITR-7	Trusts, NGOs, political parties	Income under sections 139(4A–4F)	Charities, research bodies

ITR-1 (SAHAJ) – For Salaried Individuals

Who Can File:

Resident individuals (not HUF or company)
Total income up to ₹50 lakh

Income Sources:

Salary or Pension
One House Property
Other Sources (interest, dividends)
Family pension

Cannot File If:

Capital gains income
More than one house property
Business or professional income
Director in a company
Foreign income or foreign assets

ITR Form Type:

ITR-1 (Sahaj)
Simple and best for salaried people

ITR-2 – For Individuals & HUFs (Non-Business)

Who Can File:

Individuals or HUFs
No income from business or profession

Income Sources:

Salary/pension
More than one house property
Capital Gains (stock market, mutual funds, real estate)
Foreign assets/income
Agricultural income > ₹5,000
Dividend income

Cannot File If:

Business or profession income (use ITR-3)

ITR Form Type:

ITR-2
Suitable for investors and NRIs

ITR-3 – For Business Owners or Professionals

Who Can File:

Individuals or HUFs
Having business or profession income

Income Sources:

Income from proprietary business or freelancing (consultant, doctor, lawyer)
Salary, house property, capital gains, other sources
Interest in a partnership firm (profit share, interest)

Cannot File If:

You opt for presumptive income (then use ITR-4)

ITR Form Type:

ITR-3
Detailed form for self-employed or business owners

ITR-4 (SUGAM) – For Presumptive Income

Who Can File:

Individuals, HUFs, and Firms (not LLP)
Opting for Presumptive Taxation under:
- Section 44AD – Small businesses
- Section 44ADA – Professionals (like doctors, architects)
- Section 44AE – Transporters

Income Sources:

Business/profession with turnover:
- Business: up to ₹2 crore
- Profession: up to ₹50 lakh
Salary, one house property, other sources (excluding lottery/income from racehorses)

Cannot File If:

Director in a company
Foreign income/assets
More than one house property
Regular business (not presumptive)

ITR Form Type:

ITR-4 (Sugam)
Best for small businesses and freelancers under presumptive scheme

ITR-5 – For Firms, LLPs, AOPs, BOIs

Who Can File:

Partnership Firms (including LLPs)
AOP (Association of Persons)
BOI (Body of Individuals)
Artificial Juridical Persons, Estates

Income Sources:

All types (business, capital gains, other sources)

Cannot File If:

You are an individual, HUF, or company (use other ITRs)

ITR Form Type:

ITR-5
Detailed form for non-individual entities (excluding companies)

ITR-6 – For Companies (Except Those Claiming Sec. 11 Exemption)

Who Can File:

Companies registered under Companies Act
Not claiming exemption under Section 11 (income from property held for charitable or religious purposes)

Income Sources:

Business/profession
Capital gains, dividend, etc.

Cannot File If:

Company claims exemption under Section 11 (use ITR-7)

ITR Form Type:

ITR-6
Mandatory e-filing with digital signature

ITR-7 – For Trusts, Political Parties, NGOs

Who Can File:

Entities that need to file returns under:

Section 139(4A) – Charitable/religious trusts
Section 139(4B) – Political parties
Section 139(4C) – Scientific research institutions, news agencies, etc.
Section 139(4D) – Educational institutions, universities

Income Sources:

Donations, grants, other income used for charitable/religious purposes

ITR Form Type:

ITR-7
For institutions claiming exemption from tax

How to Choose the Right Form?

Your Income From	Use This Form
Only salary income under ₹50 lakh, 1 house	ITR-1
Capital gains, multiple houses, foreign assets	ITR-2
Freelancer, consultant, or shop owner	ITR-3
Small business or professional under presumptive tax	ITR-4
You run a firm or LLP	ITR-5
You own a company (Pvt Ltd, etc.)	ITR-6
You are a trust, political party, or NGO	ITR-7