Which ITR Form Should You Use for FY 2024–25? A Simple Guide
Which ITR Form Should You Use for FY 2024–25? A Simple Guide
Introduction:
Filing your income tax return for FY 2024–25? One of the first and most crucial steps is selecting the correct ITR form. Filing the wrong form could lead to notices, delays, or even rejection of your return. In this simplified guide from Pallan Associates, we help you confidently choose the right ITR form suited to your profile.
Types of ITR Forms & Who Should Use Them:
- ITR-1 (Sahaj): Salaried individuals with total income up to ₹50 lakh, one house property, and income from other sources like interest (excluding lottery or horse racing).
- ITR-2: Individuals and HUFs not having income from business or profession, but having capital gains or multiple properties.
- ITR-3: Individuals or HUFs with income from business or profession, including freelancers and consultants.
- ITR-4 (Sugam): Taxpayers opting for presumptive income under Sections 44AD, 44ADA, or 44AE.
How to Choose the Right Form:
Salaried only with simple income: ITR-1
Salaried with capital gains, foreign assets, or multiple properties: ITR-2
Professionals, consultants, or business income: ITR-3
Under presumptive taxation scheme: ITR-4
Common Mistake:
Many salaried taxpayers use ITR-1 even when they have capital gains, which should ideally be reported in ITR-2.