Professional Update by CA Gupta Nitin Ghaziabad

Respected Members

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FAQs on filing the return of income tax return

The FAQs on filing the Income-tax Return (ITR) for Assessment Year 2026-27 provide comprehensive guidance on ITR forms, eligibility, filing modes, due dates, and taxpayer obligations. An ITR is the prescribed form used to report income, taxes paid, claim refunds, and carry forward eligible losses. The FAQs explain the applicability of ITR-1 to ITR-7, detailing which forms are suitable for individuals, HUFs, firms, LLPs, companies, trusts, and other entities based on the nature of income and taxpayer status. They also clarify the eligibility and restrictions for filing ITR-1 (Sahaj), ITR-2, ITR-3, ITR-4 (Sugam), ITR-5, ITR-6, and ITR-7, along with the available modes of filing, including electronic filing with digital signature, electronic verification code (EVC), ITR-V verification, and paper filing in specified cases. The FAQs emphasize that ITR forms are attachment-free, though supporting documents should be retained for verification. They further explain e-filing utilities, Form 26AS, AIS, e-payment, due dates, mandatory filing requirements, and the benefits of timely and accurate return filing.

Q.1 What is a return of income?

Ans. ​ITR stands for Income Tax Return​. It is a prescribed form through which the particulars of income earned by a person in a financial year and taxes paid on such income are communicated to the Income-tax Department. It also allows carry -forward of loss and claim refund from income tax department.​Different forms of returns of income are prescribed for filing of returns for different Status and Nature of income.

​Q.2 What are the forms of return prescribed under the Income-tax Law?

Ans. Under I​ncome-tax Law, different forms of returns are prescribed for different classes of taxpayers. The return forms are known as ITR forms (Income Tax Return Forms). The forms of return prescribed under the Income-tax Law for filing of return of income for the assessment year 2026-27​ (i.e., financial year 2025-26 ) are as follows:

Q.3 What are the different modes of filing the return of income?

Ans. ​The Return Form can be filed with the Income-tax Department in any of the

following ways, – (i) by furnishing the return electronically under digital signature; (ii) by transmitting the data in the return electronically under electronic verification code; (iii) by transmitting the data in the return electronically and thereafter submitting the verification of the return in Return Form ITR-V;

Note Where the return of income is filed in the manner given at (iii) without digital signature, then the taxpayer should take two printed copies of Form ITR-V. One copy of ITR-V, duly signed by the taxpayer, is to be sent (within the period specified in this regard, i.e., 30 days) by speed post to “Centralised Processing Centre, Income Tax Department, Bengaluru – 560500, Karnataka.” The other copy may be retained by the taxpayer for his record.

Q.4 Which mode of filing of return is applicable to whom?

Ans. The applicable return of income shall be furnished by a person mentioned in column (ii) of the Table below to whom the conditions specified in column (iii) apply, in the manner specified in column (iv) thereof:—

Q.5 Is it necessary to attach any documents along with the return of income?

Ans. ​​​​​​ITR return forms are attachment less forms and, hence, the taxpayer is not required to attach any document (like proof of investment, TDS certificates, etc.) along with the return of income (whether filed manually or filed electronically). However, these documents should be retained by the taxpayer and should be produced before the tax authorities when demanded in situations like assessment, inquiry, etc. As discussed above, no documents are to be attached along with the return of income, however, in case of a taxpayer who is required to furnish a report of audit under 

section10(23C)(iv), 10(23C)(v), 10(23C)(vi), 10(23C)via), 10A, 10AA, 12A(1)(b), 44AB, 44DA, 50B, 80-IA, 80-IB, 80-IC, 80-ID, 80JJAA, 80LA, 92E, 115JB or 115VW​​​​ or to give a no​​​tice under section 11(2)(a) shall furnish it electronically on or before the date of filing the return of income.

Q.6 Who can use ITR – 1 (SAHAJ)?

 Ans. Return Form ITR – 1 (SAHAJ) can be used by an individual whose total income includes:

(1) Income from salary/pension; or

(2) Income from one house property (excluding cases where loss is brought forward from previous years); or

(3) Income from other sources (excluding winnings from lottery and income from race horses, income taxable under section 115BBDA or Income of the nature referred to in section 115BBE).

(4) Long-term capital gains under Section 112A up to Rs. 1.25 lakh

Further, in a case wh​ere the income of another person like spouse, minor child, etc., is to be clubbed with the income of the taxpayer, this return form can be used only when such income falls in any of the above categories. ITR Description​ITR – 1 (SAHAJ) For Individuals having Income from Salaries, one house property, other sources (Interest etc.) and having total income upto Rs.50 lakh

Q.7 Who cannot use ITR – 1 (SAHAJ)?

 Ans. Return Form ITR – 1 (SAHAJ) cannot be used by an individual:

Who is a Non-resident or Not Ordinarily Resident

Who is a Director of a company Whose total income exceeds Rs. 50 lakhs

Who has income from more than 1 house property

Who has held unlisted equity shares at any time during the previous year

Who claims deduction under section 80QQB or section 80RRB in respect of royalty from patents or books

Who is a person in whose case tax has been deducted under section 194N.

Who is a person in whose case payment or deduction of tax has been deferred under section 191(2) or section 192(1C)

Who claims deduction under section 10AA or Part-C of Chapter VI-A

Who has brought forward loss or losses to be carried forward under any head Person claiming deduction under section 57 from income taxable under the head ‘Other Sources'(other than deduction allowed from family pension)

Who wants to claim relief under ​section 90 or section 91

Who wants to claim credit of tax deducted at source in the hands of any other person.

Who has any assets (including Financial Interest in an entity) located outside India.

Who has signing authority in any account outside India

Who has any income to be apportioned in accordance with provisions of section 5A

Who has any of the following income:

a)  Income from Business or Profession

b)  Capital Gains

c)  Income taxable under the head ‘Other sources’ which is taxable at special rate

d)  Dividend income exceeding Rs. 10 lakhs taxable under section 115BBDA

e)  Unexplained income (i.e., cash credit, unexplained investment, etc.) taxable at 60% under section 115BBE

f)  Agricultural Income exceeding Rs. 5,000

g)  Long-term capital gains under section 112A exceeding Rs. 1.25 lakh

h)  Income from any source outside India

Q.8 Who can use ITR – 2?

Ans.​​​​​ ​​Form ITR – 2 can be used by an individual and Hindu Undivided Family who is not eligible to file ​​ITR-1 Sahaj​ and not having income from “profit and gains of business or profession” and also not having income from “Profits and gains of business or profession” in the nature of interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from a partnership firm.​​

Further, in case where the income of another person like spouse, minor child, etc., is to be clubbed with the income of the taxpayer, this Return Form can be used if income to be clubbed falls in any of the above categories.​ 

ITR Description

​ITR – 2 It is applicable to an individual and HUFs whose income chargeable to income-tax under the head “Profits or gains of business or profession” is in the nature of interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from a partnership firm

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Q.9 Who cannot use ITR – 2?

Ans. ​Form ITR – 2 cannot be used by an individual and HUF whose total income for the year includes income from profit and gains from business or profession and also having income in the nature of interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from partnership firm​

Q.10 Who can use ITR – 3?

Ans. ​​​​Form ITR – 3 can be used by an individual or a Hindu Undivided Family who is having income from profits and gains of business or profession. ​​​ITR – 3 is also required to be filed by a person whose income is chargeable to tax under the head “Profits and gains ofbusiness or profession” is in the nature of interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from a partnership firm.​

Q.11 Who cannot use ITR – 3?

Ans.​​​​​​ ​​Form​ ITR – 3 cannot be used by any person other than an individual or a HUF. Further, an individual or a HUF not having income from business or profession cannot use ​​ITR – 3.​​

Q.12 Who can use ITR – 4 (SUGAM)?

Ans. ​​​Form ITR – 4 (SUGAM) can be u​sed by an Individual/HUF/Firm (Other than LLP)​ whose total income for the year includes:

(a) Business income computed as per the provisions of section 44AD or ​44AE; or​;

(b) Income from Profession as computed as per the provisions of ​44ADA; or

(c) Income from salary/pension; or

(d) Income from one house property (excluding cases where loss is brought forward from previous years); or

(e) Income from other sources (excluding winnings from lottery and income from race horses, dividend income in excess of Rs. 10 lakhs or unexplained Income, etc. as referred to in section 115BBE)

(f) Long-term capital gains under section 112A upto Rs. 1.25 lakh.

Further, in a case where the income of another person like spouse, minor child, etc., is to be clubbed with the income of the taxpayer, this return form can be used where income to be clubbed falls in any of the above categories. 

​Q.13 Who cannot use ITR – 4 (SUGAM)?

Ans.​​​​​ Form ITR – 4 (Sugam) cannot be used by an individual/HUF:

Who is a Non-resident or Not Ordinarily Resident

Who is a Director of a company Whose total income exceeds Rs.50 lakhs

Who has income from more than one House Property

Who has held unlisted equity shares at any time during the previous year

Who claims deduction under section 80QQBor section 80RRBin respect of royalty from patent or books

Who claims deduction under section 10AAor Part-C of Chapter VI-A

Who has brought forward loss or losses to be carried forward under any head

Who has income of the nature specified in section 17(2)(vi)on which tax is payable or deductible under section 191(2)or section 192(1C). Person claiming deduction under section 57from income taxable under the head ‘Other Sources’ (other than deduction allowed from family pension)

Who wants to claim relief under section 90and section 91

Who wants to claim credit of tax deducted at source in the hands of any other person.

Who has any assets (including Financial Interest in an entity) located outside India.

Who has signing authority in any account outside India

Who has any income to be apportioned in accordance with provisions of section 5A

Who has any of the following income:

a)  Income from Business or Profession other than computed under section 44AD/44ADA/44AE.

b)  Capital Gains or Loss

c)  Income taxable under the head ‘Other sources’ which is taxable at special rate

d)  Dividend income exceeding Rs. 10 lakhs taxable under Section 115BBDA

e)  Unexplained income (i.e., cash credit, unexplained investment, etc.) taxable at 60% under Section 115BBE

f)  Agricultural Income exceeding Rs. 5,000

g)  Income from any source outside India

h)  Income from speculative business and other special incomes.

i)  Income from agency business or commission or brokerage

j)  Long-term capital gains under Section 112Aexceeding Rs. 1.25 lakh.

In case the assesse keeps and maintains all books of accounts and other documents referred to in Section 44AA, and also gets his accounts audited and obtains an audit report as per Section 44AB, filling up the Form ITR – 4 (Sugam) is not mandatory. In such a case, other regular return forms viz. Form ITR–3 or Form ITR–5, as applicable, should be used.

Q.14 Who can use ITR – 5?

Ans. ​​​​​​Form​ ITR – 5 can be used by a person being a firm, LLP, AOP, BOI, Artificial Juridical Person (AJP) referred to in section 2(31)(vii), local authority referred to in section 2(31)(vi), representative assessee referred to in section 160(1)(iii) or (iv)​, cooperative society, society registered under Societies Registration Act, 1860 or under any other law of any State, trust other than trusts eligible to file Form​ ITR – 7, estate of deceased person, estate of an insolvent, business trust referred to in section 139(4E) and investments fund referred to in section 139(4F).

Q.15 Who cannot use ITR – 5?

Ans. ​​​​Form ITR – 5 cannot be used by, a person who is required to file the return of income under section 139(4A) or 139(4B) or 139(4C) or ​139(​4D) (i.e., trusts, political party, institutions, colleges).

Q.16 Who can use ITR – 6?

Ans. ​​​​​​Form ITR – 6 can be used by a company, other than a company claiming exemption under section 11 (charitable/religious trust can claim exemption under section 11​).


Q.17 Who cannot use ITR – 6?

Ans. ​​​​​​​​​​Form ITR – 6 cannot be used by a company claiming exemption under section 11​ (charitable/religious trust can claim exemption under section 11).​

Q.18 Who can use ITR – 7?

Ans. ​​​​​​Form I​TR – 7 can be used by persons including companies who are required to furnish return under section 139(4A) or section 139(4B)​ or section 139(4C) or section 139(4D) ​ (i.e., trusts, political party, institutions, colleges).

Q.19 Who cannot use ITR – 7?

Ans. ​​​​​​​​​​Form ITR – 7 cannot be used by a person who is not required to furnish return under section 139(4A) or section 139(4B)​ or section 139(4C) or section 139(4D)  (i.e., trusts, political party, institutions, colleges). ​

Q.20 What are the due dates for filing returns of income/loss?

Ans. ​​​​​​Due date of filing of return of income

With Warm Regards

CA. Nitin Gupta
B.Com, FCA, DISA, DIRM, DITL
Chairman CICASA CIRC (2026-27)
Regional Council Member CIRC (2022-2029)
Secretary CIRC of ICAI (2024-2025)
Vice Chairman CIRC of ICAI (2023-2024)

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