ITR 1 2 3 4 5 6 Meaning Explained: Which ITR Form Should You File?

ITR 1 2 3 4 5 6 meaning is one of the most searched terms during tax season in India. Every taxpayer—whether salaried, self-employed, a business owner, or part of a firm—must file an Income Tax Return (ITR) based on their specific income type and financial status. The Income Tax Department has categorised taxpayers under different ITR forms, ranging from ITR-1 to ITR-7, each designed to suit different sources of income and taxpayer categories. In this guide, we’ll break down the meaning, eligibility, and purpose of each of these ITR forms to help you choose the right one for FY 2024-25 (AY 2025-26).

What is ITR?

Income Tax Return (ITR) is a document that taxpayers submit to declare their income, deductions, and taxes paid during a financial year. The Central Board of Direct Taxes (CBDT) issues different types of ITR forms for various categories of taxpayers. Choosing the correct form is critical for accurate tax filing.

As per the Income Tax Act, there are seven types of ITR forms. Let’s explore the ITR 1 2 3 4 5 6 7 meaning in detail.

How to Know Which ITR Form to File?

Choosing the right form depends on:

• Your income source (salary, capital gains, business, etc.)
• Your residential status
• Whether you're an individual, firm, or company
• Any foreign income or assets
• Whether you opt for presumptive taxation

The infographic below will help you determine which Income Tax Return (ITR) form applies to you for the Financial Year 2024–2025.

If you're unsure whether you fall into any of these categories, consult with IndiaFilings' tax experts for personalised guidance.

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Understanding Each ITR Form: Detailed Breakdown

Now that you know the ITR 1 2 3 4 5 6 meaning, let’s dive deeper into each individual form to help you figure out which one applies to your financial profile. We'll start with ITR-1 (also known as Sahaj), which is the most commonly used form by salaried individuals with simple income structures.

ITR-1 Meaning  

ITR-1 (Sahaj) is designed for resident individuals whose income sources are straightforward and limited. This form is applicable for Assessment Year 2025–26 (pertaining to FY 2024–25), and can be used if your total income comes from any of the following:

•  Salary or Pension
•  One House Property (provided no loss is carried forward from previous years)
•  Other Sources of Income (excluding income from lottery winnings or horse races)
•  Agricultural income up to ₹5,000

 Who Should Not Use ITR-1?

You are not eligible to file ITR-1 if:

• Your total income exceeds ₹50 lakh
• Agricultural income exceeds ₹5,000
• You have taxable capital gains
• You earn income from a business or profession
• You own more than one house property
• You are a Director in a company
• You’ve invested in unlisted equity shares
• You own foreign assets or have a foreign bank account
• You are a Non-Resident (NR) or Resident but Not Ordinarily Resident (RNOR)
• You have foreign income
• You are assessable for someone else’s income (where tax is deducted in their name)
• Tax has been deducted under Section 194N
• You’ve deferred tax payment on Employee Stock Ownership Plans (ESOPs)
• You have any brought forward losses or need to carry forward losses

Still confused? Read our detailed guide on ITR-1 for clarity.

ITR-2 Meaning

Now that you know the itr 1 meaning, we now delve into ITR-2. ITR-2 is designed for individuals and Hindu Undivided Families (HUFs) who have income from various sources but do not have income from profits and gains of business or profession. This form is applicable for Assessment Year 2025–26 (pertaining to FY 2024–25) and is suitable if your income includes:

• Salary or Pension
• Income from Multiple House Properties
• Capital Gains (short-term and long-term)
• Income from Other Sources, including winnings from lotteries, racehorses, and other legal gambling activities
• Foreign Assets or Foreign Income
• Agricultural Income exceeding ₹5,000
• Directorship in a Company
• Investments in Unlisted Equity Shares
• Being a Resident Not Ordinarily Resident (RNOR) or Non-Resident

Additionally, if you have income that needs to be clubbed (e.g., income of a spouse or minor child), and such income falls into any of the above categories, ITR-2 is the appropriate form to use.

Who Should Not Use ITR-2?

You are not eligible to file ITR-2 if:

• You have income from the profits and gains of a business or profession. In such cases, consider using ITR-3 or ITR-4, depending on your specific circumstances.

Choosing the correct ITR form is crucial for accurate tax filing and compliance. If you're uncertain about which form to use, consult with IndiaFilings experts:

ITR-3 Meaning 

The ITR-3 Form is designed for individuals and Hindu Undivided Families (HUFs) who earn income from a proprietary business or profession that does not fall under the presumptive taxation scheme (Sections 44AD, 44ADA, or 44AE).

If you are carrying out a business or professional activity and are required to maintain books of accounts or undergo a tax audit, this is the return you must file.

Who Should File ITR-3?

You are eligible to file ITR-3 if you have income from:

• A business or profession that is not under presumptive taxation
• Business or professional income requiring the maintenance of books of accounts and/or tax audit
• Investments in unlisted equity shares during the financial year
• Being a partner in a firm, earning a salary, remuneration, interest, etc.
• Other sources of income include:
• Salary or pension
• Income from house property
• Interest or dividend income

Who Should Not File ITR-3?

• Individuals or HUFs eligible to file ITR-1, ITR-2, or ITR-4
• Taxpayers with only salary, house property, or capital gains income without any business or professional activity

In Summary: ITR-3 is meant for individuals or HUFs who are not eligible to file ITR-1, ITR-2, or ITR-4 and have income from business, profession, or firm partnership.

For a comprehensive understanding of ITR-3 and guidance on how to complete the form, refer to our detailed guide.

ITR-4 or Sugam: For Presumptive Income Taxpayers

Moving on to the next category under ITR 1 2 3 4 5 6 meaning, we have ITR-4, also known as Sugam. This form is primarily meant for resident individuals, Hindu Undivided Families (HUFs), and Partnership Firms (except LLPs) who opt for taxation under the presumptive income scheme.

You can file ITR-4 if your total income for AY 2025–26 includes any of the following:

• Business income under Section 44AD or 44AE (presumptive basis)
• Professional income under Section 44ADA
• Salary or pension income up to ₹50 lakh
• Income from one house property (with total income not exceeding ₹50 lakh and no loss carry forward)
• Income from other sources, not exceeding ₹50 lakh (excluding lottery or racehorse winnings)

Freelancers earning from eligible professional services can also opt for this form, provided their gross receipts stay within ₹50 lakh and they choose presumptive taxation.

The presumptive taxation scheme under Sections 44AD, 44AE, and 44ADA allows eligible taxpayers to declare income at a fixed percentage of turnover or gross receipts, simplifying compliance. However, if your business turnover exceeds ₹2 crore, you must switch to ITR-3 instead.

Who Cannot File ITR-4?

• You are not eligible to file ITR-4 if:
• Your total income exceeds ₹50 lakh
• You earn from more than one house property
• You own foreign assets or hold signing authority in overseas bank accounts
• You are a Non-Resident (NR) or Resident but Not Ordinarily Resident (RNOR)
• You earn any foreign income
• You are a Director in a company
• You have invested in unlisted equity shares
• You are assessable on another person’s income
• Tax has been deferred on Employee Stock Ownership Plans (ESOPs)
• You have any brought forward losses or need to carry forward losses

ITR-5 Meaning

​The Income Tax Return Form ITR-5 is designated for entities such as firms, Limited Liability Partnerships (LLPs), Associations of Persons (AOPs), Bodies of Individuals (BOIs), Artificial Juridical Persons (AJPs), estates of deceased or insolvent individuals, business trusts, and investment funds.

ITR 6 Meaning

​ITR-6 is the designated Income Tax Return form for companies that are not claiming exemptions under Section 11 of the Income Tax Act. This form is applicable to entities whose income is not derived from property held for charitable or religious purposes. Filing of ITR-6 is exclusively conducted electronically, and it is mandatory for companies to submit this return with a digital signature.

ITR 7

ITR-7 is the designated Income Tax Return form for entities, including companies, obligated to file returns under specific sections of the Income Tax Act:​

• Section 139(4A): Applicable to individuals receiving income from property held under trust or other legal obligations, either wholly or partially, for charitable or religious purposes.​
• Section 139(4B): Pertains to political parties required to file a return if their total income, before claiming exemptions under Section 139A, exceeds the maximum amount not chargeable to income tax.​
• Section 139(4C): Includes entities such as:​
• Scientific research associations​
• News agencies​
• Associations or institutions referred to in Section 10(23A)​
•  Institutions referred to in Section 10(23B)​
• Funds, universities, educational institutions, hospitals, or other medical institutions​
• Section 139(4D): Mandates filing by universities, colleges, or other institutions that are not required to furnish a return of income or loss under any other provision of this section.​
• Section 139(4E): Requires business trusts, which are not mandated to furnish a return of income or loss under any other provisions of this section, to file returns.​
• Section 139(4F): Pertains to investment funds referred to in Section 115UB, which are not obligated to furnish a return of income or loss under any other provisions of this section.​

For a comprehensive understanding of the ITR-7 Form, you may refer to our detailed guide.

Quick Recap: Which ITR Form is Right for You?

Conclusion 

Understanding the ITR 1 2 3 4 5 6 meaning is essential for every Indian taxpayer. Whether you’re a salaried employee, a freelancer, a business owner, or part of a partnership or company, there is a specific ITR form tailored to your financial profile. Filing the right form ensures legal compliance, faster refunds, and peace of mind.

Still Confused About Which ITR Form to File? Don’t let tax filing stress you out! Get expert help from IndiaFilings — India’s leading platform for hassle-free ITR filing. Whether you're a salaried professional, freelancer, or business owner, our tax professionals will guide you to choose the right ITR form and file it accurately.

Talk to a Tax Expert at IndiaFilings Now and file your return easily!

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FAQs on ITR 1 2 3 4 5 6 Meaning

1. What is the meaning of ITR 1 to 6?

Each ITR form (1 to 6) corresponds to a specific category of taxpayer and income type.

• ITR-1: Salaried individuals with simple income
• ITR-2: Individuals with capital gains or foreign assets
• ITR-3: Business owners or professionals
• ITR-4: Presumptive income scheme users
• ITR-5: Firms, LLPs, AOPs, BOIs
• ITR-6: Companies (not claiming exemption under Section 11)

2. Who should file ITR-1?

ITR-1 is for resident individuals earning up to ₹50 lakh from salary, one house property, and other sources (excluding lottery or racehorse income). Not for directors, NRIs, or those with capital gains or foreign income.

3. Can I file ITR-2 if I have business income?

No. ITR-2 is not applicable for individuals with business or professional income. You must use ITR-3 in that case.

4. What is the difference between ITR-3 and ITR-4?

• ITR-3: For professionals and business owners under normal taxation
• ITR-4: For small businesses or professionals opting for presumptive taxation under Sections 44AD, 44ADA, or 44AE.

5. Can LLPs use ITR-4?

No. LLPs are not eligible to use ITR-4. They must use ITR-5 instead.

6. Who should file ITR-5?

Firms, LLPs, AOPs, BOIs, and other non-individual, non-company entities (excluding those claiming Section 11 exemptions) should file ITR-5.

7. Which ITR form do companies use?

All companies (except those claiming exemption under Section 11) should file ITR-6. It must be submitted electronically with a digital signature.

8. Can an individual file ITR-5 or ITR-6?

No. Individuals can only file ITR-1, 2, 3, or 4, depending on their income and eligibility. ITR-5 and ITR-6 are for firms and companies.

9. Can a salaried person file ITR-4?

Yes, but only if they have presumptive business/professional income in addition to salary, and total income doesn’t exceed ₹50 lakh.

10. What happens if I file the wrong ITR form?

Filing the wrong ITR form may lead to your return being considered defective. You'll get a notice under Section 139(9) and will need to revise the return within a specified time.

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