Selecting the correct Income Tax Return (ITR) form is crucial for accurate and hassle-free filing.
Here’s a quick guide to the ITR forms applicable for FY 2024–25 (AY 2025–26):
🔹 ITR-1 (Sahaj): Ideal for resident individuals with a total income up to ₹50 lakh. (Includes income from salary /pension, one residential property, and other sources like interest). For FY 2024–25, it also allows reporting of long-term capital gains (LTCG) under Section 112A up to ₹1.25 lakh—only if there are no carried forward losses.
🔹 ITR-2: Designed for individuals and Hindu Undivided Families (HUFs) who don’t earn from business or profession but have income from salary, more than one house property, capital gains, or foreign assets/income.
🔹 ITR-3: For individuals and HUFs having income from business or profession.
🔹 ITR-4 (Sugam): Best suited for resident individuals, HUFs, and firms (excluding LLPs) whose total income is up to ₹50 lakh and who opt for presumptive taxation under Sections 44AD, 44ADA, or 44AE. This form now permits reporting LTCG under Section 112A up to ₹1.25 lakh as long as no losses are carried forward.
🔹 ITR-5: For entities like Partnership firms, LLPs, Associations of Persons (AOPs), Bodies of Individuals (BOIs), and co-operative societies. (Not meant for individuals, HUFs, or companies filing under ITR-7)
🔹 ITR-6: Used by companies that do not claim exemption under Section 11 (i.e., not involved in charitable or religious activities). – Must be filed electronically with digital signature.
🔹 ITR-7: Applies to persons or organizations (including companies) required to file under Sections 139(4A) to 139(4D). Common filers include charitable trusts, political parties, research institutions, and educational institutions.
Pro Tip: Filing the wrong form can lead to processing delays, notices, or even rejection of your return.
Stay with me as we break down more key ITR concepts in this 10-part series.
#DemystifyingITR #ITRFiling2025 #FinanceTips #TaxReady #SmartMoney
#IncomeTaxIndia #TaxSimplified
Read this blog on linkedin
https://www.linkedin.com/feed/update/urn:li:activity:7333016631863889920/
