Individual having Income from Business / Profession for AY 2025-2026

Returns and Forms Applicable to Individual having Income from Business / Profession for AY 2025-26

Disclaimer: The content on this page is only to give an overview and general guidance and is not exhaustive. For complete details and guidelines, please refer to the Income Tax Act, Rules and Notifications.

1. ITR-3 - Applicable for Individual & HUF

This return is applicable for Individual & Hindu Undivided Family (HUF);

Having Income under the head Profits or Gains of Business or Profession

Who is not eligible for filing ITR-1, ITR-2 or ITR-4

2. ITR-4 (SUGAM) – Applicable for Individual, HUF & Firm (Other than LLP)

Note:1

ITR-4 cannot be used by a person who:

is a Director in a Company, or
has held any unlisted equity shares at any time during the previous year, or
has any asset (including financial interest in any entity) located outside India, or
has signing authority in any account located outside India, or
has income from any source outside India,
is a person in whose case payment or deduction of tax has been deferred on ESOP
who has any brought forward loss or loss to be carried forward under any head of income
has total income exceeding Rs. 50 lakhs.

Note:2 that Form ITR-4 (SUGAM) is not mandatory. It is a simplified return form to be used by an assessee, at his / her option, if he / she is eligible to declare Profits and Gains from Business or Profession on presumptive basis under Section 44AD, 44ADA or 44AE.

Forms Applicable

1. Form 16A – Certificate u/s 203 of the Income Tax Act, 1961 for TDS on Income other than Salary

Provided by	Details provided in the form
Deductor to Deductee	Form 16A is a Tax Deducted at Source (TDS) Certificate issued quarterly that captures the amount credited, amount of TDS, Nature of Payments and the TDS Payments deposited with the Income Tax Department.

Form 26 AS

AIS (Annual information Statement)

Provided by:

Income Tax Department (It is available on e-Filing Portal:

Details provided in the form:

Tax Deducted / Collected at Source.

Provided by:

Income Tax Department (It can be accessed after logging on to Income Tax e-Filing portal)

Go to e-filing portal > login > AIS

Details provided in the form:

Tax Deducted / Collected at Source
SFT Information
Payment of taxes
Demand / Refund

Other information (like Pending/Completed proceedings, GST Information, Information received from foreign government etc)

Note: Information regarding (Advance Tax/SAT, Details of refund, SFT Transaction, TDS u/s 194 IA,194 IB,194M, TDS defaults) which were available in 26AS are now available in AIS

3. Form 3CB-CD

Submitted by

Details provided in the form

Taxpayer who is required to get his / her accounts audited by an accountant u/s 44AB.

To be furnished atleast one month before the due date for furnishing the return of income under sub-section (1) of section 139.

Report of Audit of Accounts (Form 3CB) and Statement of Particulars (Form 3CD) required to be furnished under Section 44AB of the Income Tax Act, 1961

4. Form 15G - Declaration by resident Taxpayer (not being a Company or Firm) claiming certain receipts without deduction of tax

Submitted by	Details provided in the form
A Resident Individual less than 60 years or HUF or any other Person (other than Company / Firm) to bank for not deducting TDS on Interest Income if the income is below basic exemption limit.	Estimated Income for the FY

5. Form 15H - Declaration to be made by a resident Individual (who is 60 years age or more) claiming certain receipts without deduction of tax

Submitted by	Details provided in the form
A Resident Individual, 60 years or more to bank for not deducting TDS on Interest Income.	Estimated Income for the FY

6. Form 3CEB

Submitted by

Details provided in the form

Taxpayer who enters into an international transaction or specified domestic transactions is required to obtain a report from a chartered accountant u/s 92E.

To be furnished atleast one month before the due date for furnishing the return of income under sub-section (1) of section 139.

Report from a Chartered Accountant containing details of all international transaction(s) and specified domestic transaction(s)

Tax Slabs for AY 2025-26***

The Finance Act 2024 has amended the provisions of Section 115BAC w.e.f AY 2024-25 to make new tax regime the default tax regime for the assessee being an Individual, HUF, AOP (not being co-operative societies), BOI or Artificial Juridical Person. However, the eligible taxpayers have the option to opt out of new tax regime and choose to be taxed under old tax regime. The old tax regime refers to the system of income tax calculation and slabs that existed before the introduction of the new tax regime. In the old tax regime, taxpayers have the option to claim various tax deductions and exemptions.
In "non-business cases", option to choose the regime can be exercised every year directly in the ITR to be filed on or before the due date specified under section 139(1).
In case of eligible taxpayers having income from business and profession, new tax regime is default regime. If assessee wants to opt out of new tax regime, they can furnish Form-10-IEA on or before the due date u/s 139(1) for furnishing the return of income. Also, for the purpose of withdrawal of such option i.e. opting out of old tax regime shall also be done by way of furnishing Form No.10-IEA. However, option to switch to old tax regime and withdraw the option in any subsequent AY is available only once in lifetime for eligible taxpayers having income from business and profession.

Tax rates for Individual (resident or non-resident) less than 60 years of age anytime during the previous year are as under:

Old Tax Regime			New Tax Regime u/s 115BAC
Income Tax Slab	Income Tax Rate	*Surcharge	Income Tax Slab	Income Tax Rate	*Surcharge
Up to ₹ 2,50,000	Nil	Nil	Up to ₹ 3,00,000	Nil	Nil
₹ 2,50,001 - ₹ 5,00,000**	5% above ₹ 2,50,000	Nil	₹ 3,00,001 - ₹ 7,00,000**	5% above ₹ 3,00,000	Nil
₹ 5,00,001 - ₹ 10,00,000	₹ 12,500 + 20% above ₹ 5,00,000	Nil	₹ 7,00,001 - ₹ 10,00,000	₹ 20,000 + 10% above ₹ 7,00,000	Nil
₹ 10,00,001- ₹ 50,00,000	₹ 1,12,500 + 30% above ₹ 10,00,000	Nil	₹ 10,00,001 - ₹ 12,00,000	₹ 50,000 + 15% above ₹ 10,00,000	Nil
₹ 50,00,001- ₹ 100,00,000	₹ 1,12,500 + 30% above ₹ 10,00,000	10%	₹ 12,00,001 - ₹ 15,00,000	₹ 80,000 + 20% above ₹ 12,00,000	Nil
₹ 100,00,001- ₹ 200,00,000	₹ 1,12,500 + 30% above ₹ 10,00,000	15%	₹ 15,00,001- ₹ 50,00,000	₹ 1,40,000 + 30% above ₹ 15,00,000	Nil
₹ 200,00,001- ₹ 500,00,000	₹ 1,12,500 + 30% above ₹ 10,00,000	25%	₹ 50,00,001- ₹ 100,00,000	₹ 1,40,000 + 30% above ₹ 15,00,000	10%
Above ₹ 500,00,000	₹ 1,12,500 + 30% above ₹ 10,00,000	37%	₹ 100,00,001- ₹ 200,00,000	₹ 1,40,000 + 30% above ₹ 15,00,000	15%
			Above ₹ ₹ 200,00,001	₹ 1,40,000 + 30% above ₹ 15,00,000	25%

Tax rates for Individual (resident or non-resident), 60 years or more but less than 80 years of age anytime during the previous year are as under:

Old Tax Regime			New Tax Regime u/s 115BAC
Income Tax Slab	Income Tax Rate	*Surcharge	Income Tax Slab	Income Tax Rate	*Surcharge
Up to ₹ 3,00,000	Nil	Nil	Up to ₹ 3,00,000	Nil	Nil
₹ 3,00,001 - ₹ 5,00,000**	5% above ₹ 3,00,000	Nil	₹ 3,00,001 - ₹ 7,00,000**	5% above ₹ 3,00,000	Nil
₹ 5,00,001 - ₹ 10,00,000	₹ 10,000 + 20% above ₹ 5,00,000	Nil	₹ 7,00,001 - ₹ 10,00,000	₹ 20,000 + 10% above ₹ 7,00,000	Nil
₹ 10,00,001- ₹ 50,00,000	₹ 1,12,500 + 30% above ₹ 10,00,000	Nil	₹ 10,00,001 - ₹ 12,00,000	₹ 50,000 + 15% above ₹ 10,00,000	Nil
₹ 50,00,001- ₹ 100,00,000	₹ 1,12,500 + 30% above ₹ 10,00,000	10%	₹ 12,00,001 - ₹ 15,00,000	₹ 80,000 + 20% above ₹ 12,00,000	Nil
₹ 100,00,001- ₹ 200,00,000	₹ 1,12,500 + 30% above ₹ 10,00,000	15%	₹ 15,00,001- ₹ 50,00,000	₹ 1,40,000 + 30% above ₹ 15,00,000	Nil
₹ 200,00,001- ₹ 500,00,000	₹ 1,12,500 + 30% above ₹ 10,00,000	25%	₹ 50,00,001- ₹ 100,00,000	₹ 1,40,000 + 30% above ₹ 15,00,000	10%
Above ₹ 500,00,000	₹ 1,12,500 + 30% above ₹ 10,00,000	37%	₹ 100,00,001- ₹ 200,00,000	₹ 1,40,000 + 30% above ₹ 15,00,000	15%
			Above ₹ ₹ 200,00,001	₹ 1,40,000 + 30% above ₹ 15,00,000	25%

Tax rates for Individual (resident or non-resident) 80 years of age or more anytime during the previous year are as under:

Old Tax Regime			New Tax Regime u/s 115BAC
Income Tax Slab	Income Tax Rate	*Surcharge	Income Tax Slab	Income Tax Rate	*Surcharge
Up to ₹ 5,00,000	Nil	Nil	Up to ₹ 3,00,000	Nil	Nil
₹ 5,00,001 - ₹ 10,00,000	20% above ₹ 5,00,000	Nil	₹ 3,00,001 - ₹ 7,00,000**	5% above ₹ 3,00,000	Nil
₹ 10,00,001- ₹ 50,00,000	₹ 1,12,500 + 30% above ₹ 10,00,000	Nil	₹ 7,00,001 - ₹ 10,00,000	₹ 20,000 + 10% above ₹ 7,00,000	Nil
₹ 50,00,001- ₹ 100,00,000	₹ 1,12,500 + 30% above ₹ 10,00,000	10%	₹ 10,00,001 - ₹ 12,00,000	₹ 50,000 + 15% above ₹ 10,00,000	Nil
₹ 100,00,001- ₹ 200,00,000	₹ 1,12,500 + 30% above ₹ 10,00,000	15%	₹ 12,00,001 - ₹ 15,00,000	₹ 80,000 + 20% above ₹ 12,00,000	Nil
₹ 200,00,001- ₹ 500,00,000	₹ 1,12,500 + 30% above ₹ 10,00,000	25%	Above ₹ 15,00,000	₹ 1,40,000 + 30% above ₹ 15,00,000	Nil
Above ₹ 500,00,000	₹ 1,12,500 + 30% above ₹ 10,00,000	37%	₹ 15,00,001- ₹ 50,00,000	₹ 1,40,000 + 30% above ₹ 15,00,000	Nil
			₹ 50,00,001- ₹ 100,00,000	₹ 1,40,000 + 30% above ₹ 15,00,000	10%
			₹ 100,00,001- ₹ 200,00,000	₹ 1,40,000 + 30% above ₹ 15,00,000	15%
			Above ₹ ₹ 200,00,001	₹ 1,40,000 + 30% above ₹ 15,00,000	25%

*Note: The enhanced surcharge of 25% & 37%, as the case may be, is not levied, from income chargeable to tax under sections 111A, 112, 112A and Dividend Income. Hence, the maximum rate of surcharge on tax payable on such incomes shall be 15%, except when the income is taxable under section 115A, 115AB, 115AC, 115ACA and 115E.

**Rebate u/s 87A: Resident Individuals are also eligible for a Rebate of up to 100% of income tax subject to a maximum limit depending on tax regimes as under:

Total Income	Old Tax Regime	New Tax Regime
	Rebate under Section 87A Applicable
Up to Rs. 5 Lakh	Tax rebate up to Rs.12,500 is applicable for resident individuals if the total income does not exceed Rs 5,00,000 (not applicable for NRIs	Tax rebate up to Rs.25,000 is applicable for resident individuals if the total income does not exceed Rs 7,00,000 (not applicable for NRIs
From 5 Lakhs to 7 Lakhs	NIL

***Note : Health & Education cess @ 4% to be paid on the amount of income tax plus Surcharge (if any) in both the regimes.

Marginal relief can be claimed from surcharge if the amount of income earned exceeding ₹ 50 lakhs, ₹ 1 crore, ₹ 2 crore or ₹ 5 crores respectively as under:

Net Income Range		Marginal Relief
Exceeds (Rs.)	Does not exceed (Rs.)
50 Lakh	1 Crore	Amount payable as income tax and surcharge shall not exceed the total amount payable as income tax on total income of Rs 50 Lakh by more than the amount of income that exceeds Rs 50 Lakhs
1 Crore	2 Crore	Amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore
2 Crore	5 Crore	Amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 2 crore by more than the amount of income that exceeds Rs. 2 crore
5 Crore	–	Amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 5 crore by more than the amount of income that exceeds Rs. 5 crore.

Investments / Payments / Incomes on which I can get tax benefit

Following deductions will be available to a taxpayer opting for the New Tax Regime u/s 115BAC:

Section 24(b) – Deduction from Income from House Property on interest paid on housing loan:

Nature of Property	Purpose of loan	Allowable (Maximum limit)
Let Out	Construction or purchase of house property	Actual value without any limit

Tax deductions specified under Chapter VIA of the Income Tax Act

Section 80CCD(2)

Deduction towards contribution made by an employer to the Pension Scheme of Central Government

For all categories of employers

Deduction limit of 14% of salary

Section 80CCH

Deduction in respect of contribution to Agnipath Scheme

Where an assessee, being an individual enrolled in the Agnipath Scheme and subscribing to the Agniveer Corpus Fund on or after the 1st day of November, 2022, has in the previous year paid or deposited any amount in his account in the said fund

Allowed a deduction in the computation of total income, of the whole of the amount so paid or deposited

Where the Central Government makes any contribution to the account of an assessee in the Agniveer Corpus Fund

Allowed a deduction in the computation of total income of the whole of the amount so contributed

Tax deductions in the Old Tax Regime

Section 24(b) – Deduction from Income from House Property on interest paid on housing loan & housing improvement loan. In case of self- occupied property, the upper limit for deduction of interest paid on housing loan is ₹ 2 lakh. Interest on loan u/s 24(b) allowable is tabulated below:

Nature of Property	When loan was taken	Purpose of loan	Allowable (Maximum limit)
Self-Occupied	On or after 1/04/1999	Construction or purchase of house property	₹ 2,00,000
	On or after 1/04/1999	For Repairs of house property	₹ 30,000
	Before 1/04/1999	Construction or purchase of house property	₹ 30,000
	Before 1/04/1999	For Repairs of house property	₹ 30,000
Let Out	Any time	Construction or purchase of house property	Actual value without any limit

Tax deductions specified under Chapter VIA of the Income Tax Act

Section 80C, 80CCC, 80CCD (1)

Deduction towards payments made to

80C

Life Insurance Premium
Provident Fund
Subscription to certain equity shares
Tuition Fees
National Savings Certificate
Housing Loan Principal
Other various items

Combined deduction limit of ₹ 1,50,000

80CCC

Annuity plan of LIC or other insurer towards Pension Scheme

80CCD(1)

Pension Scheme of Central Government

Section 80CCD(1B)

Deduction towards payments made to Pension Scheme of Central Government, excluding deduction claimed under 80CCD (1)

Deduction limit of ₹ 50,000

Section 80CCD(2)

Deduction towards contribution made by an employer to the Pension Scheme of Central Government

If the Employer is a PSU or Others

Deduction limit of 10% of salary

If the Employer is Central or State Government

Deduction limit of 14% of salary

Section 80CCH

Deduction in respect of contribution to Agnipath Scheme

Allowed a deduction in the computation of total income, of the whole of the amount so paid or deposited

Where the Central Government makes any contribution to the account of an assessee in the Agniveer Corpus Fund

Allowed a deduction in the computation of total income of the whole of the amount so contributed

Section 80D

Deduction towards payments made to Health Insurance Premium & Preventive Health check up

For Self / Spouse or Dependent Children

₹ 25,000 (₹ 50,000 if any person is a Senior Citizen)

₹ 5,000 for preventive health check up, included in above limit

For Parents

₹ 25,000 (₹50,000 if any person is a Senior Citizen)

₹ 5,000 for preventive health check up, included in above limit

Deduction towards Medical Expenditure incurred on a Senior Citizen, if no premium is paid on health insurance coverage

For Self/ Spouse or Dependent Children

Deduction limit of ₹ 50,000

For Parents

Deduction limit of ₹ 50,000

Section 80DD

Deduction towards payments made towards maintenance or medical treatment of a Disabled Dependent or Paid / Deposited any amount under relevant approved scheme

Flat deduction of
₹ 75,000
available for a person with Disability, irrespective of expense incurred.

The deduction is
₹ 1,25,000
if the person has Severe Disability (80% or more).=

Please note: If Taxpayer is claiming deduction u/s 80DD then its recommended to file form 10-IA also before filing of return.

Form 10IA can be filed later also however it is recommended to file form 10-IA along with return of income to avoid any inconvenience later.

Section 80DDB

Deduction towards payments made towards Medical treatment of Self or Dependant for specified diseases

Deduction limit of
₹ 40,000
(₹ 1,00,000 if Senior Citizen)

Section 80E

Deduction towards interest payments made on loan for higher education of Self or relative

Total amount paid towards interest on loan taken

Section 80EE

Deduction towards interest payments made on loan taken for acquisition of residential house property where the loan is sanctioned between 1st April 2016 to 31st March 2017

Deduction limit of
₹ 50,000
on the interest paid on loan taken

Section 80EEA

Deduction available only to individuals towards interest payments made on loan taken for acquisition of residential house property for the first time where the loan is sanctioned between 1st April 2019 to 31st March 2022 & deduction should not have been claimed u/s 80EE

Deduction limit of
₹ 1,50,000
on the interest paid on loan taken

Section 80EEB

Deduction towards interest payments made on loan for purchase of Electric Vehicle where the loan is sanctioned between 1st April 2019 to 31st March 2023

Deduction limit of
₹ 1,50,000
on the interest paid on loan taken

Section 80G

Deduction towards Donations made to prescribed Funds, Charitable Institutions, etc.

Donation are eligible for deduction under the below categories

Without any limit

100% deduction

50% deduction

Subject to qualifying limit

100% deduction

50% deduction

Note: No deduction shall be allowed under this section in respect of donation made in cash exceeding ₹ 2000/-

Section 80GG

Deduction towards rent paid for house & applicable to only those who are self-employed or for whom HRA is not part of Salary

Least of the following shall be allowed as deduction

Rent paid reduced by 10% of Total Income before this deduction

₹ 5,000 per month

25% of Total Income (excluding long term capital gains, short term capital gains under section 111A or income under section 115A or 115D)

Note: Form 10BA to be filled for claiming this deduction.

Section 80GGA

Deduction towards Donations made for Scientific Research or Rural Development

Donation are eligible for deduction under the below categories:

Research Association or University, College or other Institution for

Scientific Research
Social Science or Statistical Research

Association or Institution for

Rural Development
Conservation of Natural Resources or for Afforestation

PSU or Local Authority or an association or institution approved by the National Committee for carrying out any eligible project

Funds notified by Central Government for

Afforestation
Rural Development

National Urban Poverty Eradication Fund as setup and notified by Central Government

Note: No deduction shall be allowed under this Section in respect of donation made in cash exceeding ₹ 2000/- or if Gross Total Income includes income from Profit / Gains of Business / Profession

Section 80GGC

Deduction towards Donations made to Political Party or Electoral Trust

80IA

Undertaking engaged in developing, maintaining and operating any infrastructure facility (only Indian Company), Industrial Parks (any Undertaking), any Power Undertaking, Reconstruction or Revival of Power Generating Plants (Indian Company) shall be entitled to claim deduction
(subject to certain conditions)

100% of profit for 10 consecutive AYs falling within a period of 15 AY beginning with the AY in which assessee develops / begins operating and maintaining infrastructure facility.

No deduction shall be allowed to any enterprise which starts the development or operation and maintenance of the infrastructure facility on or after the 1st day of April, 2017. (No deduction shall be allowed if development, operation, etc. started after specified dates for specified business)

80IAB

Deduction in respect of Profits and Gains by an Undertaking or an Enterprise Engaged in Development of Special Economic Zone

(Subject to certain conditions)

100% of profit for 10 consecutives AY out of 15 AY beginning from the year in which a Special Economic Zone has been notified by the Central Government

No deduction to an Assessee, where the development of Special Economic Zone begins on or after 1st April 2017

80IB

Deduction towards Profits and Gains from specified industrial undertakings other than infrastructure development undertakings- 100% of profit for 10 years from the AY in which it is approved by prescribed authority (if approved after 31st March 2000 but before 1st April 2007).

The deduction under this section is available to an assessee whose Gross Total Income includes any Profits and Gains derived from the business of:

Industrial Undertaking including an SSI in J&K;

Commercial Production and Refining of Mineral Oil;

Processing, Preservation and Packaging of Fruits or Vegetables, Meat and Meat Products or Poultry or Marine or Dairy Products; Integrated Business of Handling, Storage and Transportation of Food Grains

Indian Company with Scientific and Industrial Research and Development as its main object and approved by prescribed authority shall be entitled to claim deductions

(Subject to certain conditions)

100% / 25% of profit for 5 / 10 / 7 years as per conditions specified for different types of undertakings from the AY in which it is approved by prescribed authority (if approved before 1st April 1999).

80IBA

Profit and Gains derived from Developing and Building Housing Projects

100% of profit subject to various conditions specified

80IC

Deduction in respect of certain Undertakings in Himachal Pradesh, Sikkim, Uttaranchal and North-Eastern states

(subject to certain conditions)

100% of profits for first 5 AY and 25% (30% for a company) for next 5 AY to manufacture or produce specified article or thing

80IE

Deduction to certain Undertakings set up in North- Eastern states

(subject to certain conditions)

100% of profits for 10 AY subject to various conditions specified

80JJA

Deduction in respect of Profits and Gains from Business of Collecting and Processing of Biodegradable Waste

(subject to certain conditions)

100% of profits from activity of collecting, processing and treating bio degradable waste for 5 consecutive AYs

80JJAA

Deduction in respect of Employment of New Workers / Employees, applicable to assessee to whom Section 44AB applies

(subject to certain conditions)

30% of additional employee cost for 3 AY, subject to certain conditions

80QQB

Deduction in respect of Resident Authors of certain Books other than Textbooks

Income derived by way of Royalty by an Author / Joint Author up to a maximum of ₹ 3 lakh, subject to other conditions

Note: Deduction claimed here cannot be claimed elsewhere in the Income Tax Act.

80RRB

Deduction for Resident Individuals in respect of Royalty on Patents

First Inventor / Co-owner under the Patents Act, 1970 earning income by way to Royalty up to the amount of Royalty or ₹ 3 lakh (whichever is lesser)

Note: Deduction claimed here cannot be claimed elsewhere in the Income Tax Act.

Section 80TTA

Deduction on interest received on saving bank accounts by Non-Senior Citizens

Deduction limit of
₹ 10,000/-

Section 80TTB

Deduction on interest received on deposits by Resident Senior Citizens

Deduction limit of
₹ 50,000/-

Section 80U

Deductions for a resident individual taxpayer with Disability

Flat ₹ 75,000 deduction for a person with Disability, irrespective of expense incurred

Flat ₹ 1,25,000 deduction for a person with Severe Disability (80% or more), irrespective of expense incurred

Please note: If Taxpayer is claiming deduction u/s 80U then it is recommended to file form 10-IA also before filing of return.

Form 10IA can be filed later also however it is recommended to file form 10-IA along with return of income to avoid any inconvenience later.