Which ITR Form to Use for Home Loan?
Income Tax Return (ITR) is a form used to share details of your income and taxes with the Income Tax Department of India. Every person earning money through salary, business, or other sources must file it before the deadline each year. Filing your ITR helps the government track income, taxes paid, and determine if you’re due for a refund. The form you need depends on how much you earn and the type of income—such as from property, business, capital gains, or salary. Filing ITR is important for staying tax-compliant and can also help in getting loans or visas.
Types of ITR forms to file for FY 2025-26 (AY 2026-27)
There are different ITR forms depending on the nature of income, amount earned, and your residential status. Below is a guide to the common forms applicable for individuals and businesses for the Financial Year 2025-26 (Assessment Year 2026-27).
ITR-1 (Sahaj): ITR-1 is for resident individuals earning up to Rs. 50 lakh. You can use this form if your income comes from salary or pension, one house property (with no past year’s loss), and other sources (excluding winnings from lotteries or racehorses). It also allows agricultural income up to Rs. 5,000 and long-term capital gains up to Rs. 1.25 lakh without carry-forward loss.
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Who cannot file ITR-1?
Avoid this form if your income is over Rs. 50 lakh, you earn from more than one house property, have capital gains, foreign income, business income, or hold shares in unlisted companies. Directors in companies, non-residents, RNORs, or those who’ve deferred tax on ESOPs must also use other forms.
ITR-2: This is meant for individuals or Hindu Undivided Families (HUFs) not having business income. You can file ITR-2 if your income includes salary, multiple house properties, capital gains, lottery winnings, foreign assets, agricultural income above Rs. 5,000, or if you’re a Director or have shares in unlisted companies. It also supports clubbing income of spouse or children, if applicable.
Who cannot file ITR-2?
ITR-2 cannot be used by those who earn from business or profession. They must opt for ITR-3 or ITR-4.
ITR-3: This form is for individuals or HUFs who have income from a proprietary business or profession. It is also suitable for those earning as partners in a firm. It includes all other types of income, including salary, house property, and capital gains. Use this if your books are audited or you own unlisted equity shares.
ITR-4 (Sugam): This is designed for residents including individuals, HUFs, and partnership firms (excluding LLPs) using the presumptive income scheme under Sections 44AD, 44AE, or 44ADA. It applies when total income is up to Rs. 50 lakh and includes earnings from salary, one house property, or eligible business or profession. Freelancers can use it if their gross receipts are below Rs. 50 lakh.
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Who cannot file ITR-4?
Do not use ITR-4 if your income exceeds Rs. 50 lakh, you own foreign assets, have foreign income, are a company director, or hold unlisted shares. Also, non-residents, RNORs, or those deferring ESOP taxes should avoid this form.
ITR-5: This form is used by LLPs, partnership firms, associations of persons (AOP), and other similar organisations. It covers all types of income including business, capital gains, and foreign assets.
ITR-6: Companies that do not claim exemption under Section 11 (charity or religious purposes) must file this form electronically.
ITR-7: This form is for trusts, political parties, colleges, research bodies, and institutions required to file returns under various subsections of Section 139. It’s used by entities working for charitable or educational purposes, scientific research, or as investment funds.
Choosing the right form ensures you report your income correctly and avoid future issues with the tax department.
Why should you file ITR?
Filing ITR offers many advantages. You need to file if you want to claim a tax refund or have income from foreign sources or investments. It is also necessary if you plan to apply for a visa, loan, or want to carry forward business or capital losses to future years. Companies and firms must file ITR even if they did not earn any profit. Submitting your ITR before the deadline keeps you compliant and ensures that any tax-related benefits or refunds are not delayed or lost.
Filing ITR regularly demonstrates your financial stability to lenders. If you are planning to purchase a home, this compliance record can strengthen your loan application with Bajaj Finserv. Check your home loan offers instantly. You may already be eligible, find out by entering your mobile number and OTP.
When is it mandatory to file income tax returns (ITR) in India?
Filing ITR becomes mandatory if your total income exceeds the basic exemption limit. Under the old tax system, the limits are:
Below 60 years: Rs. 2.5 lakh
Between 60 and 80 years: Rs. 3 lakh
Above 80 years: Rs. 5 lakh
In the new tax regime, the limit is Rs. 3 lakh for everyone, regardless of age.
Even if your income is below the limit, filing is still compulsory in certain cases. These include:
Depositing over Rs. 1 crore in current accounts during the year.
Depositing over Rs. 50 lakh in savings accounts.
Spending more than Rs. 2 lakh on foreign travel.
Paying over Rs. 1 lakh in electricity bills in a year.
If TDS or TCS exceeds Rs. 25,000 (or Rs. 50,000 for senior citizens).
If your annual business turnover crosses Rs. 60 lakh.
Meeting any of these criteria means you must file a return, regardless of whether you have taxable income. Filing on time avoids penalties and ensures you're eligible for refunds or to carry forward any losses.
A clean ITR filing record also helps when applying for major loans like home financing. Bajaj Finserv offers hassle-free home loans with approval in just 48 hours* and flexible repayment options up to 32 yearss. Check your loan eligibility now for instant home financing solutions. You may already be eligible, find out by entering your mobile number and OTP.
Who are exempted from filing income tax returns?
Certain individuals are not required to file an Income Tax Return (ITR). For instance, if your total yearly income is less than the basic tax exemption limit, you do not need to file one. Similarly, non-residents without any income arising or earned in India are exempt. Although the Central Government has the authority to notify more exemptions for specific groups, as of now, there have been no new notifications or updates from the government about additional exemptions from filing returns.
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Which ITR form to file and who is eligible?
Choosing the correct ITR form depends on your income, profession, and residential status. Here is a breakdown of who is eligible and ineligible for each type:
ITR form |
Who can file |
Who cannot file |
ITR-1 |
Indian residents earning up to Rs.50 Lakh from salary/pension, one house property, and up to Rs.5,000 in farm income |
Non-residents, those with over Rs.50 Lakh income, directors, and those holding shares in unlisted companies |
ITR-2 |
Individuals and HUFs (Hindu Undivided Families) with income over Rs.50 Lakh, multiple house properties, capital gains, or foreign income |
Individuals with business or professional income, or earnings from partnership firms |
ITR-3 |
Individuals and HUFs earning from business or profession, including partners in firms |
Those without business or professional income |
ITR-4 |
Residents, HUFs, and firms (excluding LLPs) earning income under presumptive taxation with turnover under Rs.2 crore |
Directors, those with foreign assets or income, or agricultural income over Rs.5,000 |
ITR-5 |
Firms, LLPs, associations, co-operative societies, and investment funds |
Individuals, HUFs, or companies that must file ITR-7 |
ITR-6 |
Companies registered under the Companies Act |
Charitable or religious organisations claiming exemption |
ITR-7 |
Charities, political parties, educational institutions, and NGOs |
Not applicable to individuals or companies required to file under other forms |
Always review your financial situation or consult a tax expert before selecting the appropriate form.
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Frequently asked questions
You should pick your ITR form based on your income sources, total annual income, and your residential status. For clarity and to avoid mistakes, it is best to refer to the official tax portal or seek help from a tax consultant.
Yes, you can revise your ITR if you made a mistake. Under Section 139(5), a revised return allows you to fix errors or missing details. Just ensure it is filed within the permitted time frame.
Maintaining accurate ITR records is crucial when applying for home loans, as lenders verify your income history. If you are considering buying a home, check your eligibility for Bajaj Housing Finance Home Loans with competitive rates. You may already be eligible, find out by entering your mobile number and OTP.
To check your ITR status, visit the income tax e-filing website. Go to the ‘ITR Status’ section, enter your acknowledgement number, and verify with the OTP sent to your registered mobile number.
You can file your return online at the official website. It offers a quick and convenient way for individuals and businesses to submit their ITRs from home.
ITR-1, ITR-2, and ITR-4 can be used by individuals and HUFs. For firms, ITR-5 is commonly used. However, your form depends on income type and other conditions, so review the criteria before filing.
There are seven ITR forms in total. For individuals, ITR-1 to ITR-4 are commonly applicable depending on income type, amount, and whether it includes business or foreign income.
Firms usually file ITR-5. Companies registered under the Companies Act typically use ITR-6. Trusts or entities seeking exemptions under various laws use ITR-7.
Non-Resident Indians (NRIs) usually need to file ITR-2 or ITR-3 depending on their income sources and whether they have business or professional earnings in India.
If you are salaried and had a loss, filing ITR is not compulsory. But if you run a business or wish to carry the loss forward to future years, then filing is necessary to claim the set-off later.
Even with business losses, having consistent ITR filings strengthens your loan profile for future property investments. Explore home loan options from Bajaj Finserv that consider your complete financial picture, not just current year income. You may already be eligible, check your offers by entering your mobile number and OTP.
If your total turnover is under Rs.2 crore and you run a small business or profession, you can choose presumptive taxation. This saves time by not needing to maintain detailed account books.
Though you do not need to upload documents, it helps to keep AIS, Form 16, rent receipts, and investment proofs handy. These support accurate filing and may be useful if your return is assessed later.
If you earned income from capital gains, such as selling property or shares, then you should use ITR-2 for filing your return.
ITR-1 is for income under Rs.50 Lakh from salary and one house property. If your income includes capital gains or multiple house properties, or exceeds Rs.50 Lakh, then use ITR-2.
ITR-1: For income below Rs.50 Lakh from salary and one house.
ITR-2: If income exceeds Rs.50 Lakh or includes capital gains or more than one house.
ITR-3: For salary plus business/profession income.
ITR-4: For salary plus freelance or small business income under presumptive taxation.
