Which ITR form should I file for AY 24-25?

Income Tax
1

The tax filing season is here and many of us often get confused as to what ITR form we should be filing. See, the ITD issues 7 ITR forms and the applicability of these forms are based on two things,

  • The type of taxpayer
  • The sources of Income

In case of individuals like us, any one of the first four forms will be applicable. The rest are for entities like LLPs, companies, and other associations.

Now, to decide the right form for you, you’ll have to ask a few questions.

  • What is my total income for the year?
  • What are my sources of income?

If your answer to the first question is more than ₹50 lakhs, you cannot file ITR-1 and ITR-4. Hence, you will have to go for either ITR-2 or ITR-3 based on what income you have.

The table below lists the forms along with the income sources.

ITR forms: Which ITR form is right based on income sources
ITR forms: Which ITR form is right based on income sources1044×581 60.1 KB

Here’s a video to know all about Income Tax Returns!

If you still have doubts, you can reply below and we will help you out!

2

Hi I have just started trading this year and am currently in small loss which I would technically want to carry forward. I file my returns under section 44AD as i run a home business and make some income out of it and usually file ITR 4. How do i go about it this year with my capital loss?

3

Hey @Siddy24,

You can file ITR 3. Here, you can report your trading losses under ‘business income’. If the losses are from F&O trading, they can be set off against all incomes except salary in the current year. If the losses are from intraday trading, they can only be set off against intraday gains. If you don’t have enough income to set off all the losses, they’ll be carried forward.

You can continue to report your other business under the ‘presumptive taxation scheme’ even in ITR-3.

Hope this clarifies.

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4

Thanks for answering. Doesn’t ITR 3 require book keeping details and ask for additional details. I couldn’t find where to show presumptive income in ITR 3. It keeps asking for balance sheet and income statement items

5

Hi,

ITR-3 is for reporting business income and you can report two businesses simultaneously. You can opt presumptive taxation scheme for one of your businesses and declare the same under ‘schedule PL (Profit & Loss)’ while filing.

Hope this helps!

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