ITR-1 to ITR-5: Which Income Tax Form Do You Need to File in FY 2024-25?
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ITR-1 to ITR-5: Which Income Tax Form Do You Need to File in FY 2024-25?
📌 Introduction: Why Choosing the Right ITR Form Matters
As the Income Tax Return (ITR) filing season for FY 2024-25 begins, one of the most common questions is:
“Which ITR form should I use?”
Whether you’re a salaried professional, a freelancer, a business owner, or someone earning rental or capital gains income, the Income Tax Department has categorized taxpayers and income types into various ITR forms, from ITR-1 to ITR-7.
In this post, we’ll focus on ITR-1 to ITR-5, the most commonly used forms by individuals and professionals.
🧾 What Is an ITR Form?
An ITR form (Income Tax Return form) is a prescribed format by the Income Tax Department of India used to file your tax returns for a financial year.
Each ITR form serves a specific category of taxpayer and type of income. Filing the wrong form can lead to rejection of the return, penalties, or notices.
ITR-1 to ITR-5: Which Income Tax Form Do You Need to File in FY 2024-25?
✅ ITR-1 (SAHAJ): For Salaried Individuals
👥 Who Can Use It?
- Resident individuals (not HUF or companies)
- Income up to ₹50 lakh
- Sources of income:
- Salary or pension
- One house property
- Other income (interest, FD, savings account, family pension)
❌ Who Cannot Use It?
- Non-residents (NRI)
- Directors in companies
- People who have invested in unlisted shares
- Income from capital gains or more than one house property
🧠 Ideal for:
- Most salaried individuals with simple income sources
✅ ITR-2: For Individuals With Capital Gains or Multiple Properties
👥 Who Can Use It?
- Individuals/HUFs who:
- Have capital gains (from stocks, mutual funds, real estate)
- Own more than one house property
- Are non-residents or RNOR
- Earn foreign income or hold foreign assets
❌ Who Cannot Use It?
- Anyone with income from business or profession (use ITR-3)
🧠 Ideal for:
- Investors, NRIs, and high-net-worth individuals
✅ ITR-3: For Business Professionals and Freelancers
👥 Who Can Use It?
- Individuals/HUFs who earn income from:
- Proprietary business or profession
- Partnership income (not as a firm)
- Freelancing, consultancy, technical services
- Intraday trading, F&O, crypto trading
Includes salary, house property, capital gains as well.
🧠 Ideal for:
- Freelancers
- Doctors, lawyers, consultants
- Traders (equity, F&O, crypto)
✅ ITR-4 (SUGAM): For Presumptive Taxpayers
👥 Who Can Use It?
- Individuals, HUFs, and Firms (not LLP) under presumptive taxation schemes (Sections 44AD, 44ADA, 44AE)
- Business turnover up to ₹2 crore
- Professional income up to ₹50 lakh
❌ Who Cannot Use It?
- If you have foreign income or capital gains
- If you hold unlisted equity shares
- If you’re a director in a company
🧠 Ideal for:
- Small businesses
- Freelancers using 50% deemed profit (44ADA)
- Transport business under 44AE
ITR-1 to ITR-5: Which Income Tax Form Do You Need to File in FY 2024-25?
✅ ITR-5: For Firms, LLPs, AOPs, and BOIs
👥 Who Can Use It?
- LLPs (Limited Liability Partnerships)
- Firms (other than individuals or HUFs)
- Association of Persons (AOP)
- Body of Individuals (BOI)
Used to report income, profit-sharing, partner details, etc.
❌ Who Cannot Use It?
- Individuals or HUFs (use ITR-1 to ITR-4)
- Companies (use ITR-6 or 7)
🧠 Ideal for:
- Registered firms and LLPs
- Group entities or co-owned businesses
📅 Important Dates for ITR Filing (FY 2024-25 / AY 2025-26)
| Category | Last Date to File ITR |
|---|---|
| Individual (no audit) | 31st July 2025 |
| Business (with audit) | 31st October 2025 |
| Companies or LLPs (audit) | 31st October 2025 |
| Tax audit with TP report | 30th November 2025 |
📍 How to Choose the Right ITR Form?
Here’s a simple checklist:
| Criteria | Suggested ITR |
|---|---|
| Only salary income | ITR-1 |
| Salary + Capital Gains | ITR-2 |
| Business/Freelancing Income | ITR-3 |
| Presumptive scheme (44AD/ADA) | ITR-4 |
| Partnership Firm or LLP | ITR-5 |
✅ Common Mistakes to Avoid
- ❌ Filing ITR-1 with capital gains
- ❌ Using ITR-4 when actual books are maintained
- ❌ Declaring incorrect residential status
- ❌ Missing foreign assets declaration (ITR-2/3 only)
- ❌ Ignoring interest income from savings or FD
📌 Can I File My ITR Myself?
Yes! You can file it:
- ✅ On the Income Tax e-Filing Portal
- ✅ Through offline utilities (JSON-based)
- ✅ Using platforms like ClearTax, TaxBuddy, or Groww
Make sure:
- PAN, Aadhaar are linked
- Form 16, AIS, and TDS details are verified
- E-verification is done via Aadhaar OTP or net banking
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