The Income Tax Department has started the online filing process for Income Tax Returns (ITR) for the financial year 2024-25 (assessment year 2025-26). Currently, only ITR-1 and ITR-4 forms are available for online filing on the e-filing portal. Taxpayers who need to file ITR-2 or ITR-3 will have to wait a bit longer, as those forms have not yet been released.

Here’s everything you need to know to determine which form is right for you based on your income source:

✅ Who Can File ITR-1?

ITR-1, also known as Sahaj, is meant for resident individuals whose:

• Total income is up to ₹50 lakh

• Income comes from the following sources:

  • Salary

  • Pension

  • One house property

  • Other sources like:

    • Interest from savings account

    • Interest from FDs, post office, or cooperative societies

    • Interest received on income tax refunds

    • Interest from compensation

    • Family pension

  • Agricultural income up to ₹5,000

❌ Who Cannot File ITR-1?

You are not eligible for ITR-1 if your income includes:

• Earnings from business or profession

• Capital gains (e.g., from stock market or property)

• Income from more than one house property

• Winnings from lottery or horse racing

• Income taxable under Sections 115BBDA or 115BBE

✅ Who Can File ITR-4?

ITR-4 is suitable for resident individuals, HUFs (Hindu Undivided Families), and firms (except LLPs) who:

• Have total income up to ₹50 lakh

• Have income under the presumptive taxation scheme under:

  • Section 44AD (small businesses)

  • Section 44ADA (professionals like doctors, lawyers)

  • Section 44AE (transporters)

• Also have income from:

  • Salary or pension

  • One house property

  • Agricultural income up to ₹5,000

  • Other sources such as:

    • Interest from savings accounts and fixed deposits

    • Interest from tax refunds

    • Family pension

    • Interest from unsecured loans

❌ Who Cannot File ITR-4?

You are not eligible to file ITR-4 if:

• You are classified as a Resident but Not Ordinarily Resident (RNOR) or a Non-Resident Indian (NRI)

• Your total income exceeds ₹50 lakh

• Your agricultural income is more than ₹5,000

• You are a director in a company

• You earn income from more than one house property

• Your income includes:

  • Lottery winnings or horse racing

  • Special tax rate income

• You own unlisted equity shares

• You have deferred tax on ESOPs from startups

📌 Key Takeaway

• Use ITR-1 if you're a salaried individual with simple income sources and total income under ₹50 lakh.

• Use ITR-4 if you are a small business owner or professional under presumptive taxation and your income meets eligibility.

Taxpayers are advised to file early and choose the correct form based on their income type. For those using ITR-2 or ITR-3, the wait continues — keep checking the e-filing portal for updates.