Which ITR Form Should You File for FY 2024–25?
- PRITI SIRDESHMUKH
- Oct 4
- 9 min read
Filing your Income Tax Return (ITR) correctly is crucial to ensure compliance, avoid penalties, and claim refunds efficiently. For FY 2024–25 (AY 2025–26), taxpayers have multiple ITR forms to choose from depending on their income sources, residential status, and the nature of their financial transactions. Selecting the correct form is essential, as filing an incorrect ITR can lead to delays, notices, or the need to file a revised return. With the updates introduced in the current financial year, including changes in reporting requirements, deductions, and TDS credits, understanding which form applies to you and how to use ITR utilities has become more important than ever. Platforms like TaxBuddy simplify this process by guiding taxpayers to the correct form based on their income profile and helping them file in a seamless, error-free manner.
Table of Contents
Which ITR Form to File for FY 2024–25
The correct ITR form depends on your income sources. Taxpayers must consider salary income, house property income, capital gains, business or professional income, and income from other sources such as interest or dividends.
Common ITR Forms for FY 2024–25
ITR-1 (SAHAJ): Designed for salaried individuals with income up to ₹50 lakh, including income from one house property and other sources like interest.
ITR-2: For individuals and HUFs not having income from business or profession but with income from salary, multiple house properties, capital gains, or foreign assets.
ITR-3: For individuals and HUFs with income from business or profession, including professionals under the presumptive taxation scheme.
ITR-4 (SUGAM): For individuals, HUFs, and firms (other than LLPs) opting for the presumptive taxation scheme under Sections 44AD, 44ADA, or 44AE.
ITR-5: Applicable to partnership firms, LLPs, AOPs, BOIs, and cooperative societies.
ITR-6: For companies other than those claiming exemption under Section 11 (charitable/religious trusts).
ITR-7: For persons including trusts, political parties, and institutions required to file under Sections 139(4A), 139(4B), 139(4C), or 139(4D).
Key Updates and Changes for FY 2024–25
Updated reporting of capital gains and TDS on specific transactions.
New disclosures for foreign assets and income for resident individuals.
Revised formats for claiming deductions under Sections 80C, 80D, and 80EEA.
Integration of pre-filled TDS and salary information from Form 26AS and AIS for error-free filing.
How to Choose the Right ITR Form Based on Income Sources
Choosing the correct Income Tax Return (ITR) form is crucial for accurate filing and compliance with tax regulations. The appropriate ITR form depends largely on the sources of income, the complexity of the taxpayer’s financial situation, and any exemptions or deductions claimed. Selecting the wrong form can lead to errors, delays in processing, or even notices from the Income Tax Department.
For individuals whose income is derived solely from salary and who do not have any other complex income streams, ITR-1, also known as the Sahaj form, is the most suitable option. This form is applicable for salaried individuals whose total income does not exceed ₹50 lakh, and who do not have income from business or professional sources, multiple house properties, or capital gains exceeding exemption limits. It is the simplest form and allows straightforward reporting of salary, allowances, and standard deductions.
If an individual has income from both salary and a single house property, ITR-1 can still be used. However, if there are multiple house properties or if there are losses from house property, ITR-2 must be filed. ITR-2 accommodates income from multiple properties, capital gains, and other sources like interest or dividends.
For taxpayers with capital gains, whether short-term or long-term, ITR-2 is mandatory if the gains exceed the specified exemption limits. This form provides sections to accurately report details of sales, acquisitions, exemptions, and the application of indexation for long-term capital gains. Capital gains from securities, mutual funds, or property sales must be correctly disclosed to avoid discrepancies.
Individuals earning income from business or professional services need to use ITR-3. This form allows detailed reporting of profit and loss statements, balance sheets, and other business-related deductions. For small businesses or professionals opting for presumptive taxation under Sections 44AD, 44ADA, or 44AE, ITR-4, also known as Sugam, is applicable. It simplifies reporting by allowing taxpayers to declare income at a prescribed rate without maintaining detailed accounts.
For taxpayers holding income in multiple bank accounts, all accounts must be disclosed irrespective of income type. Depending on whether there is business, capital gains, or multiple property income, either ITR-2 or ITR-3 may be required. These forms ensure comprehensive reporting, capturing all income streams to prevent mismatch with the information available to the Income Tax Department, such as Form 26AS or TDS statements.
In summary, the choice of the ITR form depends on the nature and complexity of income sources, with ITR-1 suitable for simple salaried cases, ITR-2 for salaried individuals with multiple income streams or capital gains, ITR-3 for business/professional income, and ITR-4 for those under presumptive taxation schemes. Proper selection ensures accurate filing, timely refunds, and compliance with all applicable tax laws.
Is ITR-1 Allowed in New Tax Regime?
Yes, salaried individuals opting for the new tax regime can file ITR-1 provided their income sources meet the form’s eligibility criteria.
How TaxBuddy Simplifies ITR Form Selection
TaxBuddy guides users step-by-step, analyzing income sources and deductions to suggest the correct ITR form. It also pre-fills relevant data, verifies TDS credits, and ensures compliance with the latest tax regulations.
Common Mistakes While Choosing ITR Forms
Selecting ITR-1 despite having business or capital gains income: One of the most frequent errors taxpayers make is choosing ITR-1 even when their financial situation requires a different form. ITR-1, also known as Sahaj, is meant exclusively for individuals with income from salary, pension, one house property, and other sources such as interest income. Taxpayers who earn business income, professional income, or capital gains income are ineligible to file ITR-1. Filing the wrong form can lead to return rejection, delays in processing, and potential penalties. It is crucial to carefully assess all sources of income before selecting the appropriate ITR form.
Omitting foreign assets or income: Another common mistake is failing to disclose foreign assets or income. Indian residents are required to report all income earned abroad and any foreign financial accounts, investments, or assets under Schedule FA of the ITR form. Omitting these details can trigger scrutiny, notices from the Income Tax Department, and penalties for concealment of income. Accurate reporting ensures compliance and prevents legal complications.
Ignoring pre-filled TDS or salary information: Many taxpayers overlook the pre-filled details provided in their ITR forms, such as Tax Deducted at Source (TDS) entries and salary information submitted by their employer. Not verifying or updating this information can result in errors in the taxable income calculation, incorrect tax liability, or delays in refund processing. Always cross-check the pre-filled data with your Form 16, Form 26AS, and other relevant documents to ensure accuracy.
Filing ITR-1 for multiple house properties or income above permissible limits: ITR-1 allows reporting income from only one house property. Taxpayers who own multiple properties or earn rental income exceeding prescribed limits must choose ITR-2 or ITR-3 instead. Similarly, ITR-1 has income ceilings based on the type and amount of income, and exceeding these limits while filing the wrong form can lead to rejection or scrutiny. Correct selection based on the number of properties and total income is essential to avoid errors and penalties.
Filing Deadlines and Belated Returns
Regular ITR filing for FY 2024–25: September 15, 2025 (individuals without audit).
Audit cases: October 31, 2025.
Belated returns: up to December 31, 2025, with applicable penalties.
For simplified, secure, and hassle-free filing, download the TaxBuddy mobile app, which offers both self-filing and expert-assisted options.
Conclusion
Choosing the correct ITR form for the Financial Year 2024–25 is crucial to ensure accurate reporting of income, deductions, and taxes paid. Filing the wrong form can lead to notices, delays in processing refunds, or even penalties. By understanding your sources of income—whether salary, business, capital gains, or other income streams—you can identify the ITR form that aligns with your tax profile, comply with the latest regulations, and optimize your tax liability. Platforms like TaxBuddy make this process seamless by guiding you through the selection of the appropriate ITR form based on your income and financial situation, while also providing options for self-filing or expert-assisted filing. Using a reliable solution not only reduces the risk of errors but also saves time, ensures compliance, and helps you track your filing status and refunds efficiently. For anyone looking for assistance in tax filing, it is highly recommended to download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.
FAQs
Q1. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options?
TaxBuddy provides both self-filing and expert-assisted plans. Users who are confident managing their own filings can opt for the self-filing option, which offers an intuitive interface, step-by-step guidance, and AI-driven verification of inputs. For those who prefer professional support, the expert-assisted plan connects users with experienced tax professionals who review, validate, and file the return on their behalf. This ensures accurate filing, error-free returns, and peace of mind, especially for complex cases involving business income, capital gains, or multiple sources of income.
Q2. Which is the best site to file ITR?
While the official Income Tax Department portal allows filing, platforms like TaxBuddy provide an enhanced, user-friendly experience. TaxBuddy combines AI-driven tools with expert assistance, pre-fills data from Form 26AS and Form 16, checks TDS credits, calculates deductions, and ensures compliance with the latest tax regulations. This minimizes errors, speeds up processing, and makes filing easier, even for first-time taxpayers.
Q3. Where to file an income tax return?
You can file your ITR through the official Income Tax e-filing portal (www.incometax.gov.in) or through trusted platforms like TaxBuddy. TaxBuddy simplifies the process by automatically pre-filling details, guiding you through eligibility checks, offering deduction suggestions, and providing both self-filing and expert-assisted options for a seamless experience.
Q4. Can I file a belated return for FY 2024–25 if I miss the deadline?
Yes, taxpayers who miss the extended deadline of September 15, 2025, can file a belated return up to December 31, 2025. However, a late filing fee under Section 234F may apply, and interest on any outstanding tax could accrue. Filing a belated return ensures compliance, allows claiming refunds, and avoids penalties for non-filing.
Q5. What if I file the wrong ITR form by mistake?
If you select an incorrect ITR form, you can file a revised return within the prescribed period. For FY 2024–25, this period allows you to correct mistakes, change forms if necessary, or update income and deduction details. Filing a revised return ensures compliance and prevents future notices or adjustments by the Income Tax Department.
Q6. Is it mandatory to link all bank accounts while filing ITR?
Yes, it is mandatory to disclose all active bank accounts during ITR filing. This ensures that any refunds are processed correctly and credited to the taxpayer’s account. Linking multiple accounts avoids delays, prevents mismatch errors, and ensures accurate reporting of interest income from each bank.
Q7. Can I file ITR-1 if I have foreign income or assets?
No, taxpayers with foreign income, foreign assets, or foreign bank accounts are not eligible to useITR-1. They must file using ITR-2 or ITR-3, depending on their income sources. This ensures proper reporting of global income, foreign tax credits, and compliance with Sections 139 and 115A of the Income Tax Act.
Q8. Can salaried individuals with LTCG up to ₹1.25 lakh use ITR-1?
Yes, salaried individuals can use ITR-1 if their long-term capital gains (LTCG) do not exceed ₹1.25 lakh and other eligibility criteria for ITR-1 are met. LTCG beyond this limit requires filing ITR-2 to accurately report taxable capital gains and claim exemptions if applicable.
Q9. Which ITR form should a professional under presumptive taxation use?
Professionals and small businesses opting for presumptive taxation under Sections 44AD, 44ADA, or 44AE must file ITR-4 (SUGAM). This form simplifies reporting, calculates presumptive income automatically, and allows claiming standard deductions while avoiding detailed bookkeeping.
Q10. Are cooperative societies required to file via ITR-5?
Yes, cooperative societies and partnership firms are required to file ITR using ITR-5. This form captures income, deductions, and tax liabilities specific to non-individual entities and ensures compliance with Section 139(1) for non-corporate entities.
Q11. How does the TaxBuddy app assist in ITR filing?
The TaxBuddy app guides users step-by-step through the filing process. It pre-fills Form 16 and Form 26AS, checks TDS credits, calculates deductions, and flags potential errors. For expert-assisted plans, professionals review the details, provide guidance, and file returns on your behalf. The app ensures compliance with updated tax laws, provides notifications for deadlines, and simplifies filing even for complex cases.
Q12. Can I file multiple ITRs if I have different sources of income?
No, all income for a financial year must be reported in a single ITR appropriate to your income profile. Different sources, such as salary, capital gains, interest, or business income, are consolidated within one return. Filing multiple ITRs for the same financial year is not allowed and may lead to processing errors or notices from the Income Tax Department.
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