Rule 164 - Forms, eligibility and verification for return of income

Forms, eligibility, verification, etc., in respect of return of income. 164. (1) The return of income required to be furnished under section 263(1) or section 268(1)(a) or section 280, relating to the tax year commencing on the 1st April, 2026, shall be in accordance with the provisions of this rule. (2) Return of income shall be in Form SAHAJ (ITR-1) for individuals who are residents (other than not ordinarily resident) where total income includes only: (a) "Salaries" or income in the nature of family pension as defined in section 93(1)(d); or (b) "Income from house property" (not more than two properties, no brought-forward loss); or (c) "Income from other sources" (excluding lottery/race-horse winnings, no loss); or (d) "Capital gains" limited to long-term capital gains under section 198 not exceeding Rs. 1,25,000, with no loss. (3) A person is ineligible for ITR-1 if he: has assets located outside India; has signing authority in a foreign account; has income from a source outside India; has income to be apportioned under section 10; has claimed a deduction under section 93 (other than clause (d)); is a director of any company; held unlisted equity shares during the tax year; is assessable for income where tax was deducted by another person; has claimed relief under section 159 or a deduction under section 160; has agricultural income exceeding Rs. 5,000; has total income exceeding fifty lakh rupees; is subject to tax deduction under section 393(3); has deferred tax payment or deduction under section 391(2) or 392(3); or has income taxable under Part A of Chapter XIII. (4) Return of income shall be in Form No. ITR-2, in the case of a person being an individual (not being an individual to whom sub-rule (2) applies) or a Hindu undivided family, where the total income does not include income under the head "Profits or gains of business or profession". (5) Form SUGAM (ITR-4) applies to individuals, Hindu undivided families, or firms (excluding limited liability partnerships) who are residents and derive income under "Profits or gains of business or profession" computed under the presumptive provisions of section 58, and have only long-term capital gains under section 198 not exceeding Rs. 1,25,000. (6) A person is ineligible for ITR-4 if any of the same broad exclusion grounds listed for ITR-1 in sub-rule (3) apply, and additionally if he owns more than two house properties with income under that head, has a brought-forward or carry-forward loss, or has income under section 17(1)(d) with tax payable or deductible under section 391(2) or 392(3). (7) Return of income shall be in Form No. ITR-3, in the case of an individual or Hindu undivided family (other than one covered by sub-rule (2), (4) or (5)) having income under the head "Profits or gains of business or profession". (8) Return of income shall be in Form No. ITR-5, in the case of a person not being an individual, Hindu undivided family, company, or a person to whom sub-rule (10) applies. (9) Return of income shall be in Form No. ITR-6, in the case of a company not being a company to which sub-rule (10) applies. (10) Return of income shall be in Form No. ITR-7, in the case of a person, including a company (whether or not registered under the earlier company-law provisions for not-for-profit companies), required to file a return under section 349, Schedule VIII [Table: Sl. No. 1D(f)], or section 263(1)(a)(iv) or (v). (11) The return of income shall not be accompanied by a statement showing computation of tax payable, proof of tax deducted or collected at source, advance tax or self-assessment tax paid, or any document, account copy, form or audit report otherwise required to be attached under any provision of the Act. (12) The manner of furnishing the return varies by person: a company must furnish it electronically under digital signature; a person whose accounts must be audited under section 63 may furnish it electronically under digital signature or by transmitting the data electronically under an electronic verification code; any other person (other than those just described, and other than the elderly-individual case below) may use either of those two methods or may transmit the data electronically and thereafter submit verification in Form ITR-V; and an individual aged eighty years or more filing Form SAHAJ (ITR-1) or SUGAM (ITR-4) may additionally use a paper form. (13) For the purposes of sub-rule (12), "electronic verification code" means a code generated for electronic verification of the person furnishing the return, as per the data structure and standards specified by the Principal Director General or Director General of Income-tax (Systems). (14) Where a return of income relates to the tax year commencing on 1st April 2025 or any earlier tax year, it shall be furnished in the form applicable for that tax year.