How to Choose Your Income Tax Return Form: A Simple Guide for Salaried People

Filing the income tax return for the 2025-26 assessment year would be seen as complicated, but it doesn’t have to be. This guide breaks down the different forms and documents that are needed in simple, easy-to-understand language.

Which Tax Return Form should you use?

ITR-1 (SAHAJ)

This is the most basic form, ideal for most salary earners. You can use ITR-1 if:

• You are an Indian resident
  
• Your income is below Rs. 50 lakh
  
• Your income consists of salary/pension, only one house property, and other income such as interest or dividends
  
• Your income from agriculture is below Rs. 5,000

But you cannot use ITR-1 if you:

• Are a company director
• Own unlisted shares
• Have any foreign assets or income
• Have bank accounts outside India with signing authority
• Have tax deducted under section 194N
• Have deferred tax on ESOPs
• Have losses carried forward from previous years
• Earn more than Rs. 50 lakh

ITR-2

Use this form if you:

• Are an individual or HUF (Hindu Undivided Family)
  
• Don’t have business or professional income
  
• Don’t qualify for ITR-1
  

ITR-3

This form is for:

• Individuals or HUFs with business or professional income
  
• Those who do not qualify for ITR-1, ITR-2, or ITR-4

ITR-4 (SUGAM)

This is for individuals, HUFs, or firms (except LLPs) who:

• Are residents with a total income up to Rs. 50 lakh
  
• Have business income calculated on a presumptive basis
  
• Have income from salary/pension, one house property, or other sources
  
• Have agricultural income up to Rs. 5,000
  

Important Forms You Need to Know

For Employees

Form 12BB: You give this to your employer with details about HRA, LTC, home loan interest, and tax-saving investments.
Form 16: Your employer gives you this at the end of the financial year, showing your income, deductions, and TDS.

For Other Income

Form 16A: Issued quarterly for TDS on non-salary income.
Form 26AS and AIS: Available on the income tax portal, showing your tax deductions, collections, and other financial information.

For Special Situations

Form 67: For reporting foreign income and claiming foreign tax credit.
Form 15G/15H: To avoid TDS on interest if your income is below the taxable limit (15H is for seniors aged 60+).
Form 10E: For claiming relief when you receive salary arrears or advance.

Do not forget to check the income tax website for complete details and any updates to these requirements. Filing the correct form on time helps you avoid penalties and ensures you receive any refunds you’re entitled to.