ITR Forms 1 to 7 for FY 2024-25: Complete Guide with 2025 Updates & Filing Tips

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Income Tax Return (ITR) Forms 1 to 7 for FY 2024-25 (AY 2025-26): Detailed Guide with 2025 Updates

Income Tax Return (ITR) forms are essential for taxpayers in India to report their income, deductions, and tax liabilities to the Income Tax Department. For the Financial Year (FY) 2024-25, corresponding to Assessment Year (AY) 2025-26, the Central Board of Direct Taxes (CBDT) has notified seven ITR forms—ITR-1 to ITR-7—each designed for specific taxpayer categories and income sources. This article provides a comprehensive overview of each form, their eligibility criteria, applicability, and key updates introduced for AY 2025-26, based on the latest notifications and changes announced in the Union Budget 2024.

Overview of ITR Forms

The Income Tax Department has released all seven ITR forms for AY 2025-26, with e-filing utilities for ITR-1 and ITR-4 enabled on May 30, 2025, and other forms subsequently notified. The forms cater to different taxpayer profiles, including individuals, Hindu Undivided Families (HUFs), firms, companies, trusts, and other entities. Key updates for 2025 include expanded eligibility for simpler forms, enhanced capital gains reporting, and mandatory disclosures for deductions, reflecting changes in tax laws effective from July 23, 2024. The due date for filing ITRs for most individuals and entities (without audit requirements) has been extended to September 15, 2025, from the usual July 31, 2025, due to system enhancements and form updates.

Below is a detailed breakdown of each ITR form, including eligibility, structure, and 2025-specific updates.

ITR FORM-1 (SAHAJ)

Purpose

ITR-1, also known as Sahaj, is the simplest ITR form designed for resident individuals with straightforward income sources and a total income up to ₹50 lakh.

Eligibility

For FY 2024-25 (AY 2025-26), ITR-1 is applicable for resident individuals (other than Not Ordinarily Resident) whose total income includes:

Salary or Pension
Income from One House Property (excluding cases with brought-forward losses from previous years)
Income from Other Sources (e.g., interest from savings accounts, fixed deposits, bonds, or peer-to-peer transactions, but excluding winnings from lotteries or racehorses)
Long-Term Capital Gains (LTCG) under Section 112A (from listed equity shares or equity-oriented mutual funds) up to ₹1.25 lakh, provided there are no brought-forward or carry-forward capital losses
Agricultural Income up to ₹5,000

Ineligibility

ITR-1 cannot be used by:

Non-residents or Resident but Not Ordinarily Resident (RNOR)
Individuals with total income exceeding ₹50 lakh
Those with income from more than one house property
Individuals holding directorship in a company or unlisted equity shares
Those with foreign assets or signing authority in foreign accounts
Taxpayers with deferred tax on Employee Stock Options (ESOPs)
Individuals with business or professional income

Key Updates for AY 2025-26

Expanded Eligibility for LTCG: The exemption limit for LTCG under Section 112A has been increased from ₹1 lakh to ₹1.25 lakh, allowing taxpayers with such gains to file ITR-1 instead of more complex forms like ITR-2 or ITR-3, provided no capital losses are carried forward.
New Deduction Reporting: Additional details are required for claiming deductions under:
- Section 80CCD(1) (National Pension Scheme): PAN or PRAN of the taxpayer
- Section 80D (health insurance premiums): Specific details of premiums paid
- Section 80DD/80U (disability-related deductions): Acknowledgement number of Form 10-IA, which must be filed before ITR submission
- Section 80GG (rent paid): Acknowledgement number of Form 10-BA
- Section 80CCH (Agniveer Corpus Fund): A new column to report contributions to the Agniveer Corpus Fund for individuals enrolled in the Agnipath Scheme after November 1, 2022.
House Property Schedule: A new schedule under Section 24(b) requires details of interest on borrowed capital for housing loans, including loan account numbers.
Mandatory Tax Regime Disclosure: The New Tax Regime is the default for AY 2025-26. Taxpayers opting for the Old Tax Regime must explicitly select “Yes” in the ITR form and, if applicable, provide Form 10-IEA details for business income.
No Aadhaar Enrolment ID: From AY 2025-26, ITR-1 filing requires an actual Aadhaar number; the Aadhaar Enrolment ID is no longer accepted.

Filing Process

Online: Log into the e-filing portal, select AY 2025-26, choose ITR-1, and fill in pre-filled data (from Form 16, AIS, Form 26AS). Validate and e-verify.
Offline: Download the Excel utility from the Income Tax portal, fill details, generate XML/JSON, and upload.
Documents Needed: Form 16, bank statements, interest certificates, Form 26AS, investment proofs, and rental income details (if applicable).

Due Date

September 15, 2025, for individuals without audit requirements. Late filing incurs a penalty of up to ₹5,000 (₹1,000 if total income is below ₹5 lakh) and interest on tax liability.

ITR FORM-2

Purpose

ITR-2 is for individuals and HUFs with income from sources not covered under ITR-1, including capital gains, multiple properties, or foreign assets.

Eligibility

Applicable for individuals or HUFs with:

Salary or Pension
Income from House Property (multiple properties or brought-forward losses)
Capital Gains (short-term or long-term, including from equity shares, mutual funds, or other assets)
Income from Other Sources (including lottery winnings or racehorses)
Foreign Assets or income from foreign sources
Agricultural Income exceeding ₹5,000
Resident, Non-Resident, or RNOR status

Ineligibility

ITR FORM-2 cannot be used by individuals or HUFs with income from business or profession.

Key Updates for AY 2025-26

Split Capital Gains Reporting: Taxpayers must report capital gains separately for transactions before and after July 23, 2024, aligning with Finance Act 2024 changes (LTCG rate increased from 10% to 12.5%, STCG from 15% to 20%).
Clause-Level Deduction Reporting: Deductions under Sections 80C to 80U must be selected from a dropdown list for greater transparency.
Asset Reporting Threshold: Schedule AL (Assets and Liabilities) is mandatory only if total income exceeds ₹1 crore, up from ₹50 lakh, reducing compliance for mid-income taxpayers.
Tax Regime Choice: Similar to ITR-1, taxpayers must declare their tax regime choice, with Form 10-IEA required for business income opt-outs.
Foreign Retirement Funds: Streamlined reporting for relief under Section 89A for income from foreign retirement accounts.

Filing Process

Similar to ITR-1, with online or offline options.
Requires detailed schedules for capital gains, foreign assets, and house properties.
Documents: Form 16, Form 26AS, capital gains statements, property documents, and foreign asset details.

Due Date

September 15, 2025, for non-audit cases.

ITR FORM-3

Purpose

ITR FORM-3 is for individuals and HUFs with income from business or profession, in addition to other sources covered under ITR-2.

Eligibility

Applicable for individuals or HUFs with:

Income from Business or Profession (including proprietary businesses or professions)
Salary, House Property, Capital Gains, or Other Sources
Foreign Assets or Income
Agricultural Income exceeding ₹5,000

Ineligibility

Not applicable for firms, companies, or trusts.

Key Updates for AY 2025-26

Asset Reporting Relaxation: Schedule AL is mandatory only if total income exceeds ₹1 crore, easing compliance for taxpayers with income between ₹50 lakh and ₹1 crore.
Split Capital Gains: Similar to ITR-2, capital gains must be reported before and after July 23, 2024.
Form 10-IEA Requirement: Mandatory for taxpayers with business income opting out of the New Tax Regime, with acknowledgment number to be provided.
TDS Section Codes: A new field requires specifying the TDS section code (e.g., 194A, 194C) for better reconciliation with Form 26AS.
Presumptive Taxation: A checkbox for opting for presumptive taxation under Section 44BBC has been added.

Filing Process

Requires detailed profit and loss statements, balance sheets, and business income schedules.
Online or offline filing, with documents like Form 16, Form 26AS, business books, and investment proofs.

Due Date

September 15, 2025, for non-audit cases.
October 31, 2025, for businesses requiring audit.

ITR FORM-4 (SUGAM)

Purpose

ITR-4, or Sugam, is for resident individuals, HUFs, and firms (excluding LLPs) with presumptive business or professional income and total income up to ₹50 lakh.

Eligibility

Applicable for:

Resident Individuals, HUFs, or Firms (other than LLPs) with total income up to ₹50 lakh
Income from Business or Profession computed on a presumptive basis under:
- Section 44AD (business turnover up to ₹2 crore, or ₹3 crore if 95% receipts are digital)
- Section 44ADA (professionals with gross receipts up to ₹50 lakh, or ₹75 lakh if 95% digital)
- Section 44AE (transport operators with up to 10 vehicles)
Salary, One House Property, Other Sources (excluding lottery or racehorse winnings)
LTCG under Section 112A up to ₹1.25 lakh
Agricultural Income up to ₹5,000

Ineligibility

ITR FORM–4 cannot be used by:

Non-residents or RNOR
Individuals with total income exceeding ₹50 lakh
Those with income from more than one house property
Directors in a company or holders of unlisted equity shares
Taxpayers with foreign assets or deferred ESOP tax
Those not opting for presumptive taxation for business/profession

Key Updates for AY 2025-26

LTCG Inclusion: Like ITR-1, ITR-4 now allows reporting LTCG under Section 112A up to ₹1.25 lakh, simplifying filing for small investors.
Detailed Deduction Reporting: Similar to ITR-1, additional details are required for Sections 80CCD(1), 80D, 80DD/80U, 80GG, and 80CCH.
Form 10-IEA Disclosure: Enhanced reporting for taxpayers opting out of the New Tax Regime, including Form 10-IEA acknowledgment number and justification for delays.
TDS Schedule Changes: A new field for TDS section codes to align with Form 26AS.
No Aadhaar Enrolment ID: Actual Aadhaar number is mandatory.

Filing Process

Online or offline, with simplified schedules for presumptive income.
Documents: Form 16, Form 26AS, bank statements, and presumptive income calculations.

Due Date

September 15, 2025, for non-audit cases.

ITR FORM -5

Purpose

ITR FORM-5 is for entities such as firms, LLPs, associations, and other non-individual taxpayers not covered by other ITR forms.

Eligibility

Applicable for:

Firms (including LLPs)
Association of Persons (AOPs)
Body of Individuals (BOIs)
Co-operative Societies
Local Authorities
Artificial Juridical Persons
Estates of Deceased or Insolvent
Business Trusts

Ineligibility

Not for individuals, HUFs, companies, or entities filing ITR-7.

Key Updates for AY 2025-26

Stricter Capital Gains Reporting: Detailed reporting of capital gains, including restrictions on loss claims related to share buybacks to prevent misuse.
Split Capital Gains: Gains must be reported before and after July 23, 2024, per Finance Act 2024.
TDS Section Codes: Mandatory reporting of TDS section codes for reconciliation.
Presumptive Taxation: New provisions for Section 44BBC reporting.

Filing Process

Requires detailed financial statements, including profit and loss, balance sheets, and capital gains schedules.
Online filing mandatory, with documents like Form 26AS, audit reports (if applicable), and partnership deeds.

Due Date

September 15, 2025, for non-audit cases.
October 31, 2025, for entities requiring audit.

ITR FORM-6

Purpose

ITR FORM–6 is for companies not claiming exemptions under Section 11 (charitable or religious purposes).

Eligibility

Applicable for:

Companies (private or public) not claiming Section 11 exemptions
Income from business, capital gains, or other sources

Ineligibility

Not for individuals, HUFs, or companies claiming Section 11 exemptions.

Key Updates for AY 2025-26

Comprehensive Capital Gains Schedule: Enhanced reporting for capital gains, including split reporting before and after July 23, 2024, and share buyback losses (allowed only if dividend income is declared under “Other Sources”).
TDS Section Codes: Mandatory inclusion of TDS section codes.
Housing Loan Interest: Expanded Schedule 24(b) for interest deductions, requiring loan details.
No Section 11 Exemptions: Explicitly excludes companies claiming charitable exemptions.

Filing Process

Mandatory online filing with detailed financial statements and tax computations.
Documents: Audited financials, Form 26AS, Form 3CEB (if international transactions), and capital gains details.

Due Date

October 31, 2025, for domestic companies; November 30, 2025, for companies with international transactions requiring Form 3CEB.

ITR FORM-7

Purpose

ITR-7 is for entities, including trusts and institutions, filing returns under specific sections of the Income Tax Act, primarily those claiming exemptions.

Eligibility

Applicable for entities filing under:

Section 139(4A): Trusts or institutions with income from charitable or religious properties
Section 139(4B): Political parties
Section 139(4C): Institutions like medical, educational, or research bodies
Section 139(4D): Universities or colleges not required to report income/loss
Section 139(4E): Business trusts
Section 139(4F): Investment funds under Section 115UB

Ineligibility

Not for individuals, HUFs, or companies not covered under the above sections.

Key Updates for AY 2025-26

Capital Gains Reporting: Split reporting for gains before and after July 23, 2024, with rate adjustments (LTCG: 12.5%, STCG: 20%).
Audit Report Forms: Updated Form 10B and 10BB for trusts and institutions under Sections 10(23C) and 12A.
Form 10AB: Available for condonation requests under Section 12A on the e-filing portal.
TDS Section Codes: Mandatory reporting for better reconciliation.

Filing Process

Online filing with schedules for exemptions, donations, and capital gains.
Documents: Trust deeds, audit reports (Form 10B/10BB), Form 26AS, and Form 3CEB (if applicable).

Due Date

July 31, 2025, for trusts without audit.
October 31, 2025, for audited trusts.
November 30, 2025, for trusts requiring Form 3CEB.

General Updates and Compliance Tips for AY 2025-26

Extended Due Date: The filing deadline for non-audit cases is September 15, 2025, due to delays in utility releases.
New Tax Regime Default: The New Tax Regime under Section 115BAC is default; opting for the Old Regime requires explicit selection and Form 10-IEA for business income.
Penalty for Late Filing: Up to ₹5,000 (₹1,000 if income is below ₹5 lakh) plus interest under Section 234A.
Revised Returns: Mistakes can be corrected by filing a revised return by December 31, 2025.
Updated Returns: ITR-U allows filing for the previous four years (AY 2021-22 to 2024-25).
AIS and Form 26AS Verification: Cross-check with Annual Information Statement (AIS) and Form 26AS to avoid notices under Section 143(1).
Advance Tax: If tax liability exceeds ₹10,000, pay advance tax in quarterly installments (June, September, December, March).
No Document Attachment: ITRs are paperless; documents like Form 16 or receipts are for reference only.

Benefits of Filing ITR FORM

Claim Refunds: Essential for claiming tax refunds.
Carry Forward Losses: Business or capital losses can be carried forward only if ITR is filed on time.
Loan and Visa Applications: ITR serves as income proof for loans or visa processing.
Compliance: Avoids penalties and legal consequences.

How to Choose the Right ITR Form

Selecting the correct ITR form depends on:

Residential Status: Resident, Non-Resident, or RNOR
Income Sources: Salary, property, business, capital gains, or foreign income
Total Income: Thresholds like ₹50 lakh for ITR-1/ITR-4 or ₹1 crore for Schedule AL
Entity Type: Individual, HUF, firm, company, or trust
Tax Regime: New or Old, with Form 10-IEA for business income opt-outs

Use the Income Tax Department’s e-filing portal or consult a tax professional to ensure accuracy.

Conclusion

The ITR forms for FY 2024-25 (AY 2025-26) reflect significant updates aimed at simplifying compliance for small taxpayers while enhancing transparency for complex income sources. Key changes include relaxed eligibility for ITR-1 and ITR-4, split capital gains reporting, and mandatory deduction disclosures. Taxpayers should verify AIS and Form 26AS, choose the appropriate form, and file by September 15, 2025, to avoid penalties. For detailed guidance, visit the Income Tax e-filing portal (incometax.gov.in) or seek expert assistance from platforms like ClearTax or IndiaFilings.