Income Tax Return (ITR) Forms – Who Can Use
| ITR Form | Who Can Use | Who Cannot Use | Allowed for NRI? | Allowed for Pvt Ltd Company? |
|---|---|---|---|---|
| ITR-1 | Resident individuals with income ≤ ₹50 lakh from salary/pension, one house property, other sources (excl. lottery/racehorses), and agricultural income ≤ ₹5,000. | Business/professional income, capital gains, foreign assets/income, >1 house property, income > ₹50 lakh, NRIs, directors, unlisted equity shares, ESOP, Sec 194N transactions, carried-forward losses. | ❌ Not allowed for NRIs | ❌ Not allowed |
| ITR-2 | Individuals/HUFs with income from capital gains, multiple house properties, foreign assets/income, agricultural income > ₹5,000, high income > ₹50 lakh, directorships, unlisted equity shares; no business/professional income. | Taxpayers with business/professional income. | ✅ Yes (most NRIs use this) | ❌ Not allowed |
| ITR-3 | Individuals/HUFs with business/professional income (proprietorship, freelancing, trading, partnership firm income) and/or salary, house property, capital gains, other sources. | Companies & entities without business/professional income. | ✅ Yes (if have business/professional income in India) | ❌ Not allowed |
| ITR-4 | Residents (Individuals/HUFs/Firms other than LLPs) under presumptive taxation (Sec 44AD, 44ADA, 44AE) with income ≤ ₹50 lakh (AY 2025-26: LTCG ≤ ₹1.25 lakh allowed). | LLPs, taxpayers not under presumptive scheme, exceeding limits. | ⚠️ Rarely allowed (only if meet presumptive scheme rules) | ❌ Not allowed |
| ITR-5 | Partnership firms, LLPs, AOPs, BOIs, co-operative societies, local authorities, other entities (not companies, not ITR-7). | Individuals, HUFs, companies, ITR-7 entities. | ❌ Not allowed | ❌ Not allowed |
| ITR-6 | Companies (including Pvt Ltd) not claiming Sec 11 exemption. | Individuals, HUFs, firms, trusts/institutions under Sec 11. | ❌ Not allowed | ✅ Yes (normal Pvt Ltd companies) |
| ITR-7 | Persons (incl. companies) required to file under Sec 139(4A) (charitable/religious trusts), 139(4B) (political parties), 139(4C) (scientific research/news agencies), 139(4D) (colleges, universities). | All other taxpayers not eligible under above sections. | ❌ Not allowed | ✅ Yes (if Pvt Ltd registered as charitable & claiming Sec 11 exemption) |
✅ Key Pointers
- Most NRIs → ITR-2 (no business) or ITR-3 (business income).
- Private Limited Company → ITR-6 (normal) or ITR-7 (charitable).
- Never use ITR-1 for NRIs or companies.
If a resident Indian (like a housewife) has no taxable income and is not required to file an Income Tax Return (ITR) under law, they generally don’t need to file at all.
However, they may still file a “nil return” in certain cases — for example, to:
- Keep income tax records for visa or loan purposes.
- Report exempt income (like tax-free interest, gifts, etc.).
- Carry forward previous years’ losses (if any).
Which ITR to Use for a Nil Return
- If only exempt income or small interest income from savings account (≤ ₹50 lakh total) → ITR-1 (Sahaj) (as long as no business income, no capital gains, no foreign assets, etc.)
- If there are foreign assets, more than one house property, or capital gains (even if not taxable) → ITR-2
💡 Simple rule:
- No income & no special cases → ITR-1 (filed as “Nil Return”)