Income Tax Return: The season of filing income tax returns has started. Earlier the last date for filing returns was 31st July, which has now been extended to 15th September, 2025.
Income Tax Return: The work of filing Income Tax Return (ITR) has started. Now taxpayers can file their returns online for the assessment year 2025-26 by filling ITR-1 and ITR-4 forms through the e-filing portal. However, salaried people will be able to file their returns only after receiving Form-16 from the company. If you are also thinking of submitting your return as soon as possible, then first of all it is important to know which form you have to fill.
ITR-1
ITR-1 is also called Sahaj Form, which is not for everyone. If your annual income is less than Rs 50 lakh. Also, if the main source of income is salary, pension, rent from one house, interest received on money deposited in the bank and income from farming up to Rs 5,000, then only you can fill the ITR-1 form. Those who earn long term capital gain up to Rs 1.25 lakh will also be able to fill this form. Capital gain means income from the sale of stock market, mutual funds or any digital assets.
Apart from this, those who earn long term capital gain of more than Rs 1.25 lakh will not be able to fill this form. Those who have their own business, own more than one house, win lottery or earn from activities like horse racing will not be able to fill this form. Those who earn more than Rs 5000 from farming, those who earn from abroad or if someone has shares of an unlisted company, they will also not be able to fill ITR-1.
ITR-2
If you are employed or a pensioner, but you have multiple sources of income such as having a business, earning profit from shares, earning from abroad or getting rent from more than one property or having a profession like doctor-lawyer, then they have to fill ITR-2.
ITR-4
ITR-4 is also known as Sugam Form. This form is for Hindu Undivided Family, small business owners or those running a firm in partnership. Apart from this, people doing freelancing, consultancy, medicine or retail business can also fill this form. However, for this the annual income should be up to Rs 50 lakh. In this form, you can also give information about salary up to Rs 5,000, pension, interest income, family pension and income from farming. If you have opted for presumptive tax on business income under sections 44AD, 44ADA and 44AE of the Income Tax Act, then this form is right for you.
If you are an NRI or a director of a company or have income from more than one property, then you will not be able to fill this form. If you have unlisted shares, tax payment on ESOP is deferred, income is coming from sources like lottery or horse racing, then also you will not be able to fill this form.
The only difference between ITR-1 and ITR-4 is the income. Those who earn from salary and pension will be able to fill it easily. Whereas, those who do business or freelance can fill it easily.
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