ITR 2025: Sahaj or Sugam — Which is the right income tax form for you?

After the income tax department has extended the last date to file income tax return by 45 days till September 15, taxpayers are likely to be nonchalant. Meanwhile, it is worth noting that CBDT has enabled excel utilities for ITR-1 and ITR-4.

As a taxpayer, you are supposed to know which tax form applies to you based on the source of your income. Here, we give a lowdown on the common income tax forms from ITR-1 (sahaj) to ITR-4 (sugam).

Income Tax Return (ITR) forms

ITR-1: Also known as sahaj, this form is meant for those taxpayers whose total income does not exceed ₹50 lakh during the financial year.

The income should be from salary, one house property, family pension income, agricultural income (up to ₹5,000), and other sources, which include interest from savings accounts, interest from deposits (bank / post office / cooperative society), interest from income tax refund, interest received on enhanced compensation, any other interest income and family pension.

ITR-2: This can be filed by individuals or Hindu undivided family (HUF) who are not eligible to file ITR-1 (Sahaj). Additionally, those who do not have income from profit and gains of business or profession and also do not have income from profits and gains of business or profession in the nature of interest, salary, bonus, commission or remuneration received from a partnership firm.

ITR-3: The ITR-3 form is primarily meant for those taxpayers who are engaged in business or profession, who are required to maintain books of accounts. Those who do not have income from business or profession are not eligible to file their returns under ITR-3.

ITR-4: Also known as sugam, ITR-4 can be filed by a resident individual/ HUF/ firm (other than LLP) who has income not exceeding ₹50 lakh during the financial year and has income from business and profession which is computed on a presumptive basis under sections 44AD, 44ADA or 44AE or income from salary/ pension, one house property, agricultural income (up to ₹5,000).

Other sources which include interest from savings account, interest from deposit (bank/ post office / cooperative society), interest from income tax refund, family pension, interest received on enhanced compensation and any other interest income (such as interest income from unsecured loan).

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