Which Income Tax Return (ITR) Should Be Filed and By Whom?

Summary: India’s Income Tax Act, 1961, mandates taxpayers to file specific Income Tax Returns (ITRs) based on their income sources, categorized into Salary, House Property, Business or Profession, Capital Gains, and Other Sources. Different ITR forms cater to diverse taxpayer profiles. ITR-1 (SAHAJ) is for resident individuals with income below Rs. 50 lakhs, primarily from salary, a single non-let-out house property, or other sources like interest and dividends (excluding lottery winnings). However, ITR-1 is unsuitable for individuals with capital gains, business/professional income, multiple or let-out house properties, foreign income/assets, company directorship, unlisted shareholding, or agricultural income exceeding Rs. 5,000. ITR-2 serves individuals and Hindu Undivided Families (HUFs) without business income, while ITR-3 is for individuals and HUFs with income from business or profession. Presumptive tax payers under Sections 44AD, 44ADA, and 44AE, whose total income is below Rs. 50 lakhs or business turnover is less than Rs. 2 crore, file ITR-4 (SUGAM). Partnership Firms, Limited Liability Partnerships (LLPs), and Associations of Persons (AOPs) use ITR-5. Companies registered under the Companies Act, 1956 or 2013, file ITR-6, and Charitable Trusts, Political Parties, and Scientific Research Institutes file ITR-7. Currently, only utilities for ITR-1 and ITR-4 are available for submission. Regarding due dates, companies, individuals/entities requiring mandatory audits under the Income Tax Act or other laws, or partners of audited firms (and their spouses if Section 5A applies) must file by October 31. For all other assessees, the usual deadline is July 31. Notably, for the current cycle, the due date for returns has been extended from July 31, 2025, to September 15, 2025, without requiring an extension request. Taxpayers are advised to verify income documents (Form 16, Form 26AS, AIS/TIS) and compile deduction claims under Chapter VIA (e.g., Sections 80C, 80D, 80G(5), 80TTA, 24(b)), ensuring accuracy and proper documentation. Additionally, details like disability type for Sections 80DD and 80U, and disease type for Section 80DDB, are required.

WHICH RETURN IS TO BE FILE BY WHOM?

We know that under Income Tax Act – 1961, there are 5 different heads of income, like

Salary Income

Income from House Property

Income from Business or Profession

Capital Gains and

Income from Other Sources.

Accordingly there are different types of Income Tax Returns, shows that who has to file which return?

ITR-1 (SAHAJ): Resident Individuals, whose income is below Rs. 50 Lakhs;

ITR-2: Individuals and Hindu Undivided Families who has no Business Income;

ITR-3: Individuals and Hindu Undivided Families who has income from business or profession;

ITR-4 (SUGAM): Presumptive Tax Payers u/s 44AD, 44ADA, 44AE of the act, whose total income is less than Rs.50lakhs or turnover of business is below Rs.2 crore;

ITR-5: Partnership Firms, Limited Liability Partnership and AOP tax payers;

ITR-6: Companies registered under the Companies Act, 1956 or Companies Act 2013;

ITR-7: Charitable Trusts, Political Parties, Scientific Research Institute tax payers.

Till today, utility of ITR 1 and ITR 4 is available hence we can submit only ITR – 1 and ITR – 4.

As per Section 139 the due dates for filling returns of income for various categories of assesses are as under:

• Where the assesse is a company; or a person other than a company whose accounts are required to be audited under Income Tax Act or any other law; or a partner of a firm whose accounts are required to be audited under Income Tax Act or any other law for the time being in force, or the spouse of such partner if the provisions of section 5A applies to such spouse

31^st October

• In the case of any other assesse other than above

31^st July

ITR – 1:

This return is to be submitted by Resident and Ordinarily Resident individuals having income from,

Salary / Pension

One house property (not let out)

Income from other sources (interest, dividend, family pension, excluding winning from lottery, racehorses, etc.)

If you have income from capital gains either short term or long term, income from business or profession, income from more than one house property or let-out property, foreign income or ownership of foreign assets, if you are a director in a company or shareholder in unlisted companies, more than Rs. 5,000 as agricultural income, you cannot submit ITR – 1.

Please verify Income Documents, like Form No 16 match salary and TDS, Form No 26AS and AIS/TIS reconcile with interest income, like Fixed Deposit, Savings Account, dividends etc., verify Bank Statement regarding interest and dividend credits.

Verify and compile Deduction claimed: Deductions claimed under Chapter VIA:

Life Insurance Premiums, Public Provident Fund, ELSS, tuition fees, housing loan principal u/s 80C,

Medical Insurance premium receipt for self and parents u/s 80D,

Donation with valid receipt mentioning PAN, Registration Number etc. u/s 80G(5)

Interest on saving account maximum Rs. 10,000 u/s80TTA,

Interest on loan has been claimed for housing loan certificate of interest u/s 24(b) up to Rs. 2lakh,

Valid bank account no and name of Bank for receiving income tax refund if any.

In Section 80DD and 80U, the type of disability is also required to be given,

In Section 80DDB, the type of disease is also required These documents are to be verified.

Please remember that due date of Return Filling have been extended from 31^st July, 2025 to 15^th September, 2025 without asking for extention.