Income Tax Return Filing

✅ Who CAN File ITR-1

• ✓Resident individual with salary or pension income
• ✓Income from one house property (self-occupied or let-out)
• ✓Income from other sources — interest (savings, FD), dividends
• ✓Agricultural income up to ₹5,000
• ✓Total income does not exceed ₹50 lakh
• ✓Income from family pension

🚫 Who CANNOT File ITR-1

• ✗Total income exceeds ₹50 lakh
• ✗Director in any company during the year
• ✗Received ESOPs from employer
• ✗More than one house property
• ✗Capital gains income (equity, property, mutual funds)
• ✗Foreign income, foreign assets, or NRI
• ✗Business or profession income
• ✗Loss carried forward from prior years

✅ Who Should File ITR-2

• ✓Capital gains — sale of equity shares, mutual funds, property, crypto, bonds
• ✓More than one house property (rental income from multiple properties)
• ✓Foreign income, foreign assets (NRI / resident with foreign investments)
• ✓Director in a company (even if no remuneration)
• ✓Total income exceeds ₹50 lakh (but no business income)
• ✓Lottery, gambling, horse racing income
• ✓Investment in unlisted shares

📊 Capital Gains Tax Rates (AY 2025-26)

• ›STCG on listed equity / equity MF (Sec 111A) — 20%
• ›LTCG on listed equity / equity MF (Sec 112A) — 12.5% above ₹1.25L
• ›LTCG on property / unlisted shares (Sec 112) — 12.5% (without indexation)
• ›STCG on property / debt MF — slab rates
• ›Crypto / Virtual Digital Assets — 30% + 1% TDS (Sec 115BBH)
• ›Grandfathering for equity LTCG — assets held before 31 Jan 2018

Who Files ITR-3

• ✓Freelancers / consultants with professional income
• ✓Proprietors running a business with regular accounts
• ✓Doctors, lawyers, architects, CAs with professional income
• ✓Business + salary income in the same year
• ✓Business + capital gains in the same year
• ✓Any individual opting out of presumptive taxation
• ✓Partner in a firm (share of profit from firm reported here)

What ITR-3 Requires

• ›Balance sheet and profit & loss account for the year
• ›Schedules: assets, liabilities, debtors, creditors
• ›Details of all income — business, salary, capital gains, other
• ›Tax audit report (Form 3CA/3CB + 3CD) if turnover exceeds threshold
• ›MAT / AMT computation if applicable
• ›Depreciation schedule as per Income Tax Act
• ›Partner's remuneration and interest (if partner in firm)

📊 Presumptive Scheme Rates

⚠️ Conditions & Restrictions

• ⚠Cannot claim deductions beyond standard deductions and Chapter VI-A
• ⚠If declared income is lower than prescribed percentage, audit under Sec 44AB is mandatory
• ⚠Once opted out of 44AD, cannot re-enter for 5 years
• ⚠Cannot file ITR-4 if: director in company, ESOP, foreign income/assets, total income > ₹50L
• ⚠Cannot file ITR-4 if capital gains income exists
• ⚠Advance tax — one instalment due by 15 March (100%)

LLP, Partnership Firm, AOP & BOI

Non-individual, non-company entities — LLP, partnership firms, AOPs, BOIs, local authorities. Flat 30% tax rate. Due date: 31 Jul (non-audit) / 31 Oct (audit cases).

Companies

All companies except those claiming Sec 11/12 exemption. Corporate tax: 22% (Sec 115BAA) or 15% (new mfg. Sec 115BAB). Due: 31 Oct / 30 Nov (TP).

Trusts, NGOs & Institutions

Entities filing under Sec 139(4A), 139(4B), 139(4C), 139(4D) — trusts, NGOs, political parties, universities. Requires 12A/12AB, 80G registration. Due: 31 Oct.

Revised Return

Correct mistakes in an already-filed ITR — before the deadline. No late fee. No limit on number of revisions. Available for ITR-1 through ITR-7.

Belated Return

ITR filed after the original due date (31 July) but before 31 December. Late fee: ₹5,000 (income > ₹5L) or ₹1,000 (income ≤ ₹5L). Interest under Sec 234A @ 1%/month on unpaid tax.

Updated Return — ITR-U

File or correct ITR for any past AY — up to 2 years from AY end. Additional tax: 25% (filed within 12 months) or 50% (12-24 months) of incremental tax.