Synopsis: Choosing the correct ITR form for FY2024-25 is crucial to avoid tax filing errors and penalties. Here’s a simplified guide to help different types of taxpayers in India select the appropriate ITR form based on their income and entity classification.
The Income Tax Return (ITR) filing window for FY 2024-25 (AY 2025-26) is now open, with the last date set for July 31, 2025. Whether you're an individual, a business, or a trust, filing with the correct ITR form is critical to ensure compliance, avoid processing delays, and eliminate the risk of penalties.
The Income Tax Department has released seven ITR forms — ITR-1 to ITR-7 — catering to different taxpayer categories. Here's a breakdown of the seven types of taxpayers in India and the ITR forms they should use:
1. Individual Taxpayers
- Who: Salaried employees, freelancers, consultants, and professionals.
- Taxation: As per income slabs; includes general taxpayers, senior citizens (60–80 years), and super senior citizens (80+ years).
Applicable ITR Forms:
- ITR-1 (Sahaj): For income up to ?50 lakh from salary, one house property, and other sources (excluding lottery, race horses).
- ITR-2: For individuals with capital gains or owning more than one property.
- ITR-3: For those earning from business or professional services.
- ITR-4 (Sugam): For those opting for presumptive taxation under Sections 44AD, 44ADA, or 44AE.
2. Hindu Undivided Family (HUF)
- Who: A joint family of individuals descended from a common ancestor.
- Taxation: Same as individuals, with eligible deductions and exemptions.
Applicable ITR Forms:
- ITR-2, ITR-3, or ITR-4 based on the nature and complexity of income.
3. Companies
- Who: Private limited, public limited companies registered under the Companies Act.
- Taxation: Subject to flat corporate tax rates. MAT (Minimum Alternate Tax) may apply.
Applicable ITR Form:
- ITR-6: For all companies except those claiming exemption under Section 11 (income from property held for charitable or religious purposes).
4. Firms (Including LLPs)
- Who: Traditional partnership firms or Limited Liability Partnerships.
- Taxation: Flat 30% rate plus surcharge and cess.
Applicable ITR Form:
- ITR-5
5. Association of Persons (AOP) / Body of Individuals (BOI)
- Who: A group of individuals/entities joining for a common objective.
- Taxation: Taxed either at slab rates or the maximum marginal rate depending on conditions.
Applicable ITR Form:
- ITR-5
6. Local Authorities
- Who: Government bodies such as municipalities, municipal corporations, and panchayats.
- Taxation: Commercial income is taxable; some income may be exempt.
Applicable ITR Form:
- ITR-5
7. Artificial Juridical Persons (AJP)
- Who: Legal entities not covered in other categories — includes societies, trusts, and clubs.
- Taxation: Depends on the income nature and entity type.
Applicable ITR Forms:
- ITR-5: For general AJPs.
- ITR-7: For those claiming exemptions under Sections 11, 12, etc., such as charitable or religious trusts.
Filing the correct ITR form is not just a formality — it directly impacts your return processing and refund eligibility. If you're unsure, consult a tax expert or use the Income Tax Department’s filing portal that offers assisted form selection based on input.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Please consult a qualified tax professional before filing your income tax return.
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