Table of Contents
Summary of Income Tax Return (ITR) Forms – AY 2025–26
ITR-1 (SAHAJ)
- For: Resident Individuals (Ordinary) with income up to INR 1 crore from:
- Salary/Pension
- One house property
- Other sources (excluding lottery, racehorses)
- Agricultural income up to INR 5,000
- LTCG u/s 112A up to INR 1.25 lakh
- Cannot File: Director in company, unlisted equity shares, business income, foreign assets, more than one house property, income > ₹1 crore. Key Changes:
- LTCG reporting up to INR 1.25 lakh
- No carry forward of capital loss
- New fields for deductions and TDS/TCS reporting
ITR-2
- For: Individuals/HUFs with no business income but with:
- Capital Gains
- Foreign assets/income
- More than one house
- Agricultural income > INR 5,000
- Income > INR 1 crore
- Cannot File: Anyone with business/professional income. Key Changes:
- Capital gains split post 23.07.2024
- Buyback loss allowed if IFOS dividend reported post 01.10.2024
- Enhanced deduction (80C, 10(13A), etc.)
- New TDS section reporting
ITR-3
- For: Individuals/HUFs with business/professional income:
- Intraday/F&O/speculative
- Commission, agency, freelancing, proprietary
- Partner in firm
- Cannot File: Companies. Key Changes:
- Capital gains post-23.07.2024
- Buyback loss allowed with IFOS dividend post-01.10.2024
- Revised 44ADA limit
- Reference to Sec 448C for cruise operators
- New deduction fields
ITR-4 (SUGAM)
- For: Residents/HUFs/Firms (not LLPs) under presumptive income schemes:
- Section 44AD, 44ADA, 44AE
- Income up to INR 1 crore (or INR 3 crore if digital)
- Cannot File: Director in company, foreign assets, more than one house, capital gains (except LTCG u/s 112A)
- Key Changes:
- Same as ITR-1 (LTCG, no carry forward of losses, deductions)
ITR-5
- For: Firms, LLPs, AOPs, BOIs, Trusts (not under ITR-7)
- Cannot File: Individuals/HUFs, political parties, ITR-7 entities
- Key Changes: Same as ITR-3
ITR-6
- For: Companies not claiming exemption u/s 11
- Cannot File: Companies under Section 11
- Key Changes:
- Same as ITR-3
- Schedule BP: Rule 101TA—profit from raw diamonds must be ≥ 4% of gross receipts
ITR-7
- For: Entities requiring filing under:
- Sections 139(4A)-(4F): Trusts, religious, political, research institutions, etc.
- Cannot File: Firms, individuals, HUFs
- Key Changes: Same as ITR-3
What’s New Across Forms
- Reporting of LTCG u/s 112A up to INR 1.25 lakh
- No carry forward of capital losses if LTCG falls under ITR-1 or ITR-4
- New fields to disclose deduction details
- Better TDS/TCS tracking through Schedule TDS section code tagging
- Enhanced income and asset thresholds
Old vs New Tax Regime – Key Allowance Comparison
Following is a breakdown of the comparison between the old vs. new tax regime, as per the chart
| Particulars | Old Regime | New Regime | Cap / Limitations |
|---|---|---|---|
| HRA (House Rent Allowance) | Yes | No | As per formula (e.g. can’t exceed 50% of basic salary) |
| Home Loan Interest (Section 24b) | Yes | No | INR 2 lakh for self-occupied property |
| LTA (Leave Travel Allowance) | Yes | No | 2 trips in a block of 4 years |
| Car Lease | Yes | Yes | No cap |
| Car Fuel & Maintenance | Yes | Yes | No cap, but INR 1,800– INR 2,400/month perquisite tax if used for personal purpose |
| Driver Salary | Yes | Yes | No cap, but INR 900/month perquisite tax if used for personal purpose |
| Telephone Reimbursement | Yes | Yes | No cap |
| Meal Card | Yes | No | INR 50 per meal |
| NPS Contribution | Yes | Yes | Old Regime: 10% of basic (employer & employee) New Regime: 14% of basic (employer) |
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The Old Tax Regime continues to offer more exemptions and deductions, especially beneficial for salaried individuals who claim HRA, home loan interest, LTA, and meal cards.
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The New Regime, while offering lower slab rates, removes most exemptions and deductions—best suited for those who don't claim many deductions or allowances.
