From salaried to self-employed: Know which ITR form fits you to avoid costly errors before deadline

The Income Tax Department has introduced new Income Tax Return (ITR) forms for the assessment year 2025-26, covering the financial year 2024-25. Filing is expected to commence this week, enabling taxpayers to submit their returns promptly.

The forms, ranging from ITR-1 to ITR-7, cater to various taxpayer categories, including individuals, companies, and entities such as charitable trusts. Key deadlines for filing returns include 31st July 2025 for individuals not requiring an audit and 31st October 2025 for audit cases. Revised or belated returns can be filed until 31st December 2025.

Each ITR form is tailored to accommodate specific taxpayer profiles and income sources.

ITR-1 to ITR 7

ITR-1 (Sahaj) is designed for resident salaried individuals with incomes up to Rs 50 lakh, excluding those with foreign assets or business income.

ITR-2 is suited for individuals and Hindu Undivided Families (HUFs) with income from capital gains or more than one house property, but not from business or profession.

Meanwhile, ITR-3 is intended for individuals and HUFs with income from business or profession, including trading and partnership income.

ITR-4 (Sugam) applies to residents under presumptive taxation with income limits defined for professionals and businesses.

Firms, Limited Liability Partnerships (LLPs), and other associations should utilise ITR-5, which includes updates like segregation of capital gains by date and new provisions for cruise businesses.

ITR-6 is meant for companies not claiming exemption under Section 11, typically used by private and public limited companies.

Entities such as charitable trusts, political parties, and educational institutions must file ITR-7. These entities often claim exemptions under Sections 139(4A)–(4F), which cover voluntary contributions and income from property held under trust. Understanding which form to file is crucial to ensure compliance and avoid penalties for late submissions.

Source: ClearTax

ITR-U and ITR-V

In addition, the Central Board of Direct Taxes (CBDT) has issued the revised Income Tax Return form, known as the ITR-U form. The updated form was introduced following amendments made in Budget 2025 that impact the filing rules for ITR-U. These new filing regulations came into effect on April 1, 2025. Under the revised guidelines, taxpayers now have a window of 48 months from the end of the relevant assessment year to submit their updated returns.

This is an extension from the previous deadline of 24 months. The updated rules outline the conditions under which taxpayers are permitted to file an ITR-U form. It is important to note that taxpayers can utilize the ITR-U form to file a tax return, irrespective of whether they filed an ITR in the relevant assessment year. However, if a return was filed in the relevant assessment year, the taxpayer must provide the acknowledgement number of the original ITR.

Also, while ITR forms ranging from ITR-1 to ITR-7 are utilised for filing income tax returns, ITR-V serves as a verification form for cases where the return has been filed but not processed yet. It is essential to sign and dispatch the ITR-V to the Central Processing Centre (CPC) located in Bengaluru via speed post within 30 days of filing the tax return.

Alternatively, you can electronically verify your tax return on the e-filing portal to avoid the hassle of mailing the ITR-V form.

The income tax return procedure remains incomplete until verification is done, which can be achieved online or by sending the ITR-V to the CPC. The Central Board of Direct Taxes (CBDT) emphasizes this point in the instructions provided for ITR-V for the Assessment Year 2025-26.

The CBDT stated: "Please e-verify the electronically transmitted return data using Aadhaar OTP or Login to e-Filing account through Net-Banking login or EVC generated using Pre-Validated Bank Account/ Demat Account or EVC generated through Bank ATM. Alternately, you may send the duly signed (preferably in blue ink) Form ITR-V to “Centralized Processing Centre, Income Tax Department, Bengaluru 560500”, by SPEED POST ONLY."