The time to file income tax return is now near. There are 7 types of forms for filing ITR. That is different forms for different categories of taxpayers. Usually, two forms are used the most. ITR-1 form and ITR-4 form. They are also known as Sahaj and Sugam. The Central Board of Direct Taxes (CBDT) has notified the income tax return forms ITR-1 and ITR-4 for the financial year 2024-25 and assessment year 2025-26. Those who are employed have to fill out the ITR-1 form.

According to the Income Tax Act 1961, all salaried and self-employed persons must file income tax returns (ITR). Depending on the type or category of your income, you have to file an income tax return by filling out the appropriate ITR form on or before the due date. If ITR is filled by choosing the wrong form, it may be invalid. As a result, you will have to file an ITR again. Therefore, it is very important to know which ITR form is prescribed for you.

ITR1 or Sahaj Form

The ITR-1 form is for those people whose income is less than Rs 50 lakh per year. This income can be from salary or pension. Income can be from other sources. Or income can be from a house property. If there is an income of Rs 5000 from farming, then you can fill out this form. A big change in the ITR form this year is that ITR-1 (Sahaj) can be filed to deposit long-term capital gain (LTCG) under section 112A. However, its condition is that LTCG should not exceed Rs 1.25 lakh and the taxpayer should not have any loss to carry forward or set off under the capital gain category. ITR-1 form cannot be used by those taxpayers who have short-term capital gains from the sale of house property or from listed equity and equity mutual funds.

ITR 4 Form or Sugam

ITR 4 form is also called Sugam. It is for individuals and HUFs, people running partnership firms (not LLP) also fill it. That is, it is for those people whose income comes from a profession or business and is covered under the presumptive taxation scheme. The condition is that this income should be up to Rs 50 lakh. Those whose long-term capital gain is up to Rs 1.25 lakh under 112A also have to fill this form. If there is income under Income Tax Section 44AD and 44AE, then this form has to be filled. The ITR 4 form can be filled if you earn more than Rs 50 lakh from salary or pension. If you are a freelancer and your annual income is more than Rs 50 lakh, then you can fill out Form 4.

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