Which ITR Form Should You File for FY 2025-26

1. Salaried Employee with No Side Income → ITR-1 :

If you have salary income, interest from savings account, and maybe rental income from one property and your total income is under Rs. 50 lakhs then ITR-1 is your form. Simple, fast, and pre-filled on the Income Tax Portal.

Important Point to Note: From FY 2024-25 onwards, ITR-1 is NOT applicable if you are a director in a company or hold unlisted equity shares.

2. Salaried Employee Who Sold Mutual Funds or Stocks → ITR-2 :

The moment you have capital gains from stocks, mutual funds, property, or any other asset you move to ITR-2. This applies even if the gains are small or tax-exempt.

3. Businesses not opting for Presumptive Taxation Scheme → ITR-3 :

ITR-3 is applicable to individuals and Hindu Undivided Families (HUFs) who earn income from a business or profession. This form is generally used by taxpayers who maintain regular books of accounts and do not opt for the presumptive taxation scheme.

Professionals such as doctors, lawyers, architects, chartered accountants, freelancers, consultants, and business owners commonly file ITR-3. It is also suitable for individuals engaged in stock market trading, including Futures & Options (F&O) and intraday trading. Apart from business or professional income, taxpayers filing ITR-3 can also report salary income, rental income, capital gains, and income from other sources such as interest or dividends.

Partners receiving remuneration, commission, salary, or interest from partnership firms are also required to file ITR-3.

If your business requires audit applicability or compliance review, you may also explore our Audit & Assurance Services for professional guidance.

4. Businesses opting for Presumptive Taxation Scheme → ITR-4

ITR 4 is meant for small taxpayers who opt for the presumptive taxation scheme under Sections 44AD, 44ADA, or 44AE of the Income Tax Act.

This form can be filed by resident individuals, resident HUFs, and resident partnership firms (excluding LLPs) whose total income does not exceed ₹50 lakh. The presumptive taxation scheme simplifies tax compliance by allowing taxpayers to declare income at a prescribed percentage without maintaining detailed books of accounts. Small business owners, shopkeepers, consultants, freelancers, and professionals who choose presumptive taxation commonly file ITR-4.

However, taxpayers having capital gains, foreign assets, foreign income, or more than one house property are not eligible to use this form.

5. LLP or Partnership Firm → ITR-5

LLPs and partnership firms file ITR-5. Note that partners file their personal share of income in their individual ITR separately.

Businesses planning to structure or register a partnership or LLP can also check our Business Registration Services.

6. Startup Founder with a Private Limited Company → ITR-6

All companies (except those claiming 80G exemptions) must file ITR-6. This includes your Private Limited startup, even if it made a loss in FY 2025-26.

7. Not for Profit Organisations → ITR-7 :

ITR-7 is entirely different from ITR-3 and ITR-4 because it is not meant for individual taxpayers carrying on business or professional activities. Instead, ITR-7 is applicable to entities that are required to furnish returns under specific sections of the Income Tax Act.

These include charitable trusts, religious trusts, political parties, research institutions, educational institutions, hospitals, universities, colleges, and non-profit organizations claiming exemption under various provisions of the Act. Organizations filing ITR-7 usually seek tax exemptions under Sections 139(4A), 139(4B), 139(4C), or 139(4D).

For example, an NGO engaged in charitable activities, a temple trust, or a political party would typically file ITR-7.

If you operate a trust or NGO and require registration or compliance assistance, you can review our Trust Registration Services.