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    Types of Income Tax Return (ITR) Forms - How to Choose Right One?

    Last Updated On 27-05-2025

    When the time comes to file your taxes, completing your ITR form can be daunting, particularly if you have little to no knowledge of which form you need. You may wonder, “What is ITR, and why, in the world, are there so many forms?” ITR full form is Income Tax Return, which means the government has split the taxpayers into different categories depending on the source of their income, type of business, and other financial activities they conduct.

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    Determining the correct income tax return form selection is of utmost importance, as making the wrong choice will lead to your return being declined, resulting in penalties and further complications. But there is no need to panic! With the correct guidance, anyone can stress less about tax time as we break down everything, making it simple and manageable to file your taxes.

    What is an ITR Form?

    Before diving into the ITR forms list, let’s first understand "ITR meaning." An income tax return form is a return document on your income that you submit to the government's taxing authority. One of the primary functions of income tax returns is to assist the administration in assessing if the stakeholder needs to be taxed further or is entitled to a refund.

    In India, there are seven different ITR forms, and choosing the right one depends on various factors:

    • Your source of income (salary, business, house property, capital gains, etc.)
    • Your income level
    • Your residential status (resident, non-resident, or HUF)
    • Whether you own foreign assets
    • Whether you are a director of a company

    How Many ITR Forms Are There?

    The types of Income Tax Return forms in India are as follows:

    ITR Form Applicable To Key Features
    ITR-1 (Sahaj) Resident Individuals with income up to ₹50 lakh For salaried individuals, pensioners, and those with income from one house property and interest income
    ITR-2 Individuals & Hindu Undivided Families (HUFs) For those earning above ₹50 lakh, capital gains, multiple house properties, or foreign income/assets
    ITR-3 Business Owners & Professionals For individuals running a business, self-employed professionals, and company directors
    ITR-4 (Sugam) Small Business Owners & Freelancers For individuals and entities with presumptive tax income under sections 44AD, 44ADA, or 44AE
    ITR-5 Partnership Firms, LLPs, AOPs, BOIs For firms, associations, and business trusts (except companies)
    ITR-6 Companies (excluding those claiming exemptions under Section 11) For Private, Public Limited, and 1 Person Companies
    ITR-7 Trusts, NGOs, Political Parties, Educational & Scientific Institutions For entities filing under Sections 139(4A) to 139(4F)

    Types of ITR Forms – Which One Should You Choose?

    It is important to select the correct form while filing your tax returns. For each category of taxpayer, their sources of income, and earnings, the Income Tax Department has designed different types of ITR forms. Let’s see how each form is outlined and who falls under that category.

    1. ITR-1 (Sahaj) – For Salaried Individuals

      Sahaj ITR form is for residents without a total income of more than ₹50 lakh. It is the most straightforward difficulty-wise form of them all.
      Who Can File ITR-1? Who Cannot File ITR-1?
      Resident people with total income up to ₹50 lakh Non Resident Indians and Hindu Undivided Families
      Salary or pension income Individuals earning more than ₹50 lakh annually
      Income from one house property (excluding brought forward losses) Individuals with capital gains from stocks, real estate, or funds
      Interest income from savings accounts, fixed deposits, etc. (excluding lottery and horse race earnings) Business owners or professionals with self-employment income
        Individuals with foreign assets or foreign income
    2. ITR-2 – For High Income Individuals & HUFs

      If you have an income greater than ₹50 lakh or possess multiple sources of income, then ITR 2 is the form you need to file. It is not restricted to individuals; even HUFs can file them.
      Who Can File ITR-2? Who Cannot File ITR-2?
      Salaried individuals earning more than ₹50 lakh Individuals earning business or professional income (they must file ITR-3)
      Individuals with multiple house properties  
      Individuals earning capital gains from stocks, real estate, or funds  
      Those with foreign assets and foreign income  
      Agricultural income above ₹5,000  
      Company directors or investors in unlisted shares  
    3. ITR-3 – For Business Owners & Professionals

      If you own a business or earn money through self-employment, ITR-3 is the right form for you.
      Who Can File ITR-3? Who Cannot File ITR-3?
      Business owners and self employed professionals (doctors, lawyers, freelancers, etc.) Salaried individuals with only one source of income (they should file ITR-1 or ITR-2)
      Individuals earning from salary, pension, or rental income  
      Individuals earning from capital gains, lottery winnings, or other income sources  
      Company directors  
      Business owners with a turnover exceeding ₹2 crore  
    4. ITR-4 (Sugam) – For Small Business Owners & Freelancers

      ITR-4 is for resident individuals, HUFs and firms who have opted for presumptive taxation under sections 44AD, 44ADA, or 44AE. This is the form that freelancers and small business owners whose turnover is greater than 25 lakhs but lower than 2 crore should use.
      Who Can File ITR-4? Who Cannot File ITR-4?
      Small business owners, shopkeepers, and traders Individuals earning more than ₹50 lakh
      Freelancers, consultants, doctors, and lawyers earning up to ₹50 lakh Non Resident Indians (NRIs)
      Individuals and firms opting for presumptive taxation under Sections 44AD, 44ADA, or 44AE Company directors
        Individuals with foreign assets or foreign income
    5. ITR-5 – For Partnership Firms & LLPs

      ITR-5 is designed for Partnership firms (excluding those required to file ITR-7) and many more. Check below table to find out who can file and who can't file this form:
      Who Can File ITR-5? Who Cannot File ITR-5?
      Partnership firms (excluding those required to file ITR-7) Individuals (they should file ITR-1, ITR-2, ITR-3, or ITR-4)
      Limited Liability Partnerships (LLPs) HUFs and companies (they should file ITR-6)
      Associations of Persons (AOPs)  
      Body of Individuals (BOIs)  
      Business trusts and investment funds  
    6. ITR-6 – For Companies

      Companies (excluding those claiming exemptions under Section 11) must file ITR-6 electronically.
      Who Can File ITR-6? Who Cannot File ITR-6?
      Private Limited Companies Companies claiming exemption under Section 11 (charitable or religious organizations should file ITR-7)
      Public Limited Companies  
      One Person Companies (OPCs)  
    7. ITR-7 – For Trusts & NGOs

      This form is for entities that file under Sections 139(4A) to 139(4F).
      Who Can File ITR-7? Who Cannot File ITR-7?
      Charitable trusts and religious institutions Companies (they should file ITR-6)
      Political parties Individuals, HUFs, and firms
      Educational institutions  
      Scientific research institutions  
      Universities and colleges claiming tax exemptions  

    Types of Taxes in India

    India is one of the nations where taxes categorized as direct and indirect abound. The central government, state authorities, and local government bodies do their collection. Here’s a classification of all types of taxes in India:

    Category Type of Tax Description
    Direct Taxes Income Tax Tax levied on an individual’s or entity’s income based on the applicable slab rates.
      Corporate Tax Tax imposed on the profits of companies, including domestic and foreign companies.
      Capital Gains Tax Tax on the profit earned from the sale of capital assets like stocks, property, etc.
      Securities Transaction Tax (STT) Tax on the sale and purchase of securities traded on stock exchanges.
      Gift Tax Tax on gifts received above a specified limit from non-relatives.
      Wealth Tax (Abolished) Previously applied to individuals with net wealth above a certain threshold but abolished in 2015.
    Indirect Taxes Goods and Services Tax (GST) A replacement for multiple indirect taxes such as value added tax, service tax, etc. A unified tax on goods and services.
      Customs Duty Tax imposed on goods imported into or exported out of India.
      Excise Duty (Abolished) Previously levied on the manufacture of goods but replaced by GST.
      Value Added Tax (VAT) (Partially Applicable) A state level tax applicable only on certain items like fuel, alcohol, etc., post-GST implementation.
      Service Tax (Abolished) Previously levied on services but replaced by GST.
    Other Taxes & Charges Stamp Duty Tax on legal documents related to property transactions, shares, etc.
      Professional Tax A tax imposed by state governments on salaried individuals and professionals.
      Property Tax Tax levied by local municipalities on real estate properties.
      Road Tax Tax imposed on vehicles during registration, varying by state.
      Toll Tax Charge levied on the use of specific roads, bridges, and highways.
      Entertainment Tax (Merged with GST) Previously charged on movie tickets, events, etc., but now covered under GST.

    How to File Your Income Tax Return (ITR)?

    Completing your Income Tax Return (ITR) is easy if done according to your bank’s guidelines. They are also available for download at the Income Tax E-filing Portal. It does not matter if you are an employee, freelancer, executive, or entrepreneur; an ITR form needs to be submitted to ensure you don’t violate deadlines. Here’s a walkthrough to completing your ITR form:

    1. Visit the Income Tax E-filing Portal

      To begin, head over to the Income Tax E-filing portal. This is the official website from where users can file returns, determine tax payments, and see the status of refunds.
    2. Login or Register

      If this is your first visit, you must create an account with a PAN that will act as your ID tag. Returning users can type in their username and password to gain access.
    3. Choose the Appropriate ITR Form

      If you are an employee, then typically ITR-1 or ITR-2 is used, whereas a freelancer or businessperson requires ITR-3 or ITR-4. And for firms and companies, specific forms are set aside, including ITR-5, ITR-6, or ITR-7.
    4. Enter Your Income and Deductions

      Now that you have selected your preferred form, it is time to provide details regarding your payments and other relevant tax-related details. This includes information regarding income from salary, business activities, rentals, and capital assets, among others.
    5. Verify and Submit Your ITR

      Once you have filled in the information, you must verify your entries to be correct. Remember that any discrepancies could lead to delays or failure, as well as a notification from the Income Tax Department.
    6. E-Verify Your Return

      Without this action, your ITR filing cannot be regarded as finished. Your return can be verified through a One-Time Password sent to your mobile number linked with your Aadhar, net banking, or using an EVC. If you do not wish to do so now, you must send a signed physical copy of the ITR-V acknowledgment to the tax authorities within a month.

    Why Should You File Your ITR?

    Here’s why you should keep your ITR filing date on your calendar:

    1. Avoid Penalties and Legal Consequences

      The Income Tax Department has fines for late filings or defaults. Missing the ability to conduct ITR filing on time can result in penalties. If you fail to file your ITR by the due date, you can be penalized up to ₹5,000 based on Section 234F. Besides, delays also incur interest costs for unpaid tax liabilities.
    2. Claim Tax Refunds

      ITR permits you to claim a refund of excess taxes deducted through TDS from your payments or salary.
    3. Essential for Loan Approvals

      If you're taking out a personal loan, car, or home installment loan, regular ITR filings enhance your chances of meeting the criteria for many of these loans.
    4. Important for Visa Applications

      Several foreign embassies will ask for ITR documents while processing visa applications. If your intended travel is for work or study, having a clean and hassle-free tax record can help simplify matters ahead of and during your travel plans.

    Simplify Your Tax Calculations with PNB MetLife’s Income Tax Calculator

    Taxes can concern some people with the new introduction of different tax regimes. PNB MetLife has developed an effective income tax calculator that enables you to determine tax liabilities effortlessly.

    This enables you to:

    • Determine tax liability based on income and applicable deductions
    • Check both old and new tax regimes to determine the most suitable one
    • Look for tax savings by exemptions or deductions

    FAQ’s on Types of Income Tax Return

    Expand All Collapse All

    Which ITR form should a salaried individual file?

    Expanded

    Salaried individuals with income up to ₹50 lakh should file ITR-1 (Sahaj). If they have capital gains or foreign income, they should file ITR-2 instead.

    Can a business owner file ITR-1?

    Collapsed Expanded

    No, business owners must file ITR-3 (for regular businesses) or ITR-4 (for small businesses under presumptive taxation).

    What happens if I file the wrong ITR form?

    Collapsed Expanded

    Filing the incorrect form may lead to rejection or notices from the Income Tax Department, requiring you to file a revised return.

    Who should file ITR-7?

    Collapsed Expanded

    ITR-7 is for trusts, religious institutions, political parties, and NGOs filing returns under Sections 139(4A) to 139(4F).

    How can I calculate my tax liability before filing?

    Collapsed Expanded

    Before filing your return, you can use the PNB MetLife Income Tax Calculator to estimate your taxable income, deductions, and total tax liability.

    Disclaimer:

    The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.

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