Which ITR to File? Understanding ITR Forms AY 2025-26
With every financial year closing, taxpayers begin preparing for income tax return (ITR) filing. Choosing the correct ITR form is crucial to ensure accurate filing and avoid notices from the Income Tax Department. For Assessment Year 2025-26, understanding which ITR to file AY 2025-26 based on your income type, residential status, and tax situation is essential. This article breaks down the purpose and eligibility for each ITR form and guides you through the ITR filing process for AY 2025-26.
An Income Tax Return (ITR) form is a document that a taxpayer must submit to the Income Tax Department, declaring their income, deductions, and taxes paid. The government provides seven types of ITR forms, each applicable to different categories of taxpayers. Filing the correct ITR form ensures smooth processing, refund (if applicable), and legal compliance.
Why Choosing the Correct ITR Form Matters?
Filing the wrong form can invalidate your return.
It may lead to penalties or legal notices.
It ensures you claim the right deductions and exemptions.
It supports faster refund processing.
List of ITR Forms for AY 2025–26 and Who Should File
Who Can File: Resident individuals with income up to ₹50 lakh
Income Sources: Salary, one house property, and other sources (e.g., interest)
Not for: Directors in a company, foreign income holders, or capital gains earners
Suitable for salaried individuals with a simple income structure.
Who Can File: Individuals and HUFs not having income from business or profession
Includes: Capital gains, more than one house property, foreign income, etc.
Not for: Individuals with business or professional income
Ideal for investors and individuals with rental income or capital market gains.
Who Can File: Individuals and HUFs with income from business/profession
Includes: Freelancers, consultants, stock traders, business owners
Needs: Balance sheet, profit & loss statement
For professionals or those with business income.
Who Can File: Individuals, HUFs, and firms (excluding LLPs) opting for presumptive taxation
Income Limit: Up to ₹50 lakh (for professionals) or ₹2 crore (for business)
Includes: Freelancers, shopkeepers under presumptive scheme
Designed for small businesses and professionals under simplified tax scheme.
Who Can File: Partnerships, LLPs, AOPs, BOIs
Not for: Individuals, HUFs, or companies
Who Can File: Companies other than those claiming exemption under Section 11
Who Can File: Trusts, political parties, institutions claiming exemption under Sections 139(4A) to 139(4D)
How to Decide Which ITR Form to File AY 2025-26?
Ask yourself these questions:
What is your source of income?
Are you salaried, self-employed, or into business?
Do you have foreign assets or capital gains?
Do you fall under the presumptive taxation scheme?
Matching your answers with the form descriptions above will help determine which ITR to file AY 2025-26.
Step-by-Step: How to Fill ITR Form AY 2025-26 Online
Step 1: Collect Documents
Rent receipts (if applicable)
Step 2: Choose the Correct ITR Form
Refer to the form guide above and select the appropriate form based on your income.
Step 3: Login to the Income Tax Portal
Visit www.incometax.gov.in and login using your PAN and password.
Use the “e-File” section and choose “Income Tax Return”. Fill in the form carefully and enter deductions under 80C, 80D, etc.
Step 5: Verify and Submit
E-verify your return via Aadhaar OTP, net banking, or EVC. Submission without verification is considered incomplete.
Common Mistakes to Avoid While Filing ITR AY 2025-26
Not reporting interest or rental income
Missing to declare foreign assets
Claiming ineligible deductions
Why Timely Filing is Crucial?
Avoid late fees and interest
Faster processing of refunds
Helps in visa applications and loan approvals
Builds a strong financial profile
Benefits of E-Filing Your ITR Correctly
24/7 availability on the portal
Faster refunds with fewer errors
Seamless verification via Aadhaar/Net banking
Top 5 FAQs on Which ITR to File AY 2025-26
1. Which ITR form to fill AY 2025-26 for salaried individuals?
If your total income is below ₹50 lakh, and you do not have capital gains or foreign assets, use ITR-1 (Sahaj).
2. Which ITR to file AY 2025-26 if I have capital gains from mutual funds?
You should file ITR-2, as ITR-1 does not cover capital gains.
3. Can I use ITR-4 if I am a freelancer earning under ₹50 lakh?
Yes, provided you opt for the presumptive taxation scheme under Section 44ADA.
4. What happens if I file the wrong ITR form?
Your return may be marked defective, and you could receive a notice from the Income Tax Department.
5. Do I need to file ITR if my income is below ₹2.5 lakh?
Not mandatory, but advisable if you want to claim refunds, carry forward losses, or maintain income proof.
Knowing which ITR to file for AY 2025-26 ensures that you stay compliant and avoid tax complications. Whether you’re a salaried employee, a freelancer, or a business owner, selecting the correct form is essential for a hassle-free experience. With the convenience of online filing, take the time to review your income, deductions, and applicable ITR before submission.
For personalized guidance and tax-saving tips, stay tuned to Finowings—your trusted finance partner.
