Types of ITR Forms & Which One is Right for Defence Personnel in India

Key Highlights

• A breakdown of all ITR forms available for individual taxpayers in India (ITR-1 to ITR-7).
• Side-by-side comparison table to understand the differences between each ITR form.
• Tailored guidance on which ITR form suits defence personnel—serving, retired, and defence civilians.
• Common mistakes to avoid while selecting your ITR form for accurate and stress-free filing.
• How to lock your ITR filing at ₹99 with udChalo and file later—avoiding surge pricing during tax season.

Filing Income Tax Returns (ITRs) is an annual financial responsibility for every eligible Indian citizen, including members of the armed forces. However, not all ITR forms apply to everyone. Whether you're an active soldier, a retired army officer, or a defence civilian, the correct ITR form depends on your source and level of income.

This guide breaks down the different types of ITR forms available in India and helps you understand which one is relevant for army personnel, air force members, navy officers, and army veterans.

Types of ITR Forms in India

Below is a detailed explanation of each ITR form prescribed by the Income Tax Department:

ITR-1 (Sahaj)

For: Resident individuals with total income up to ₹50 lakh
Suitable for: Most salaried individuals, including defence personnel

Income Sources Covered:

• Salary/pension
• One house property
• Income from other sources (like interest)
• Agricultural income up to ₹5,000

Not Applicable If:

• You are a director in a company
• You have capital gains
• You own more than one property
• Foreign assets or foreign income
• Income from business or profession

ITR-2

For: Individuals and HUFs not earning from business/profession

Best for:

• Defence personnel with capital gains or foreign assets
• Officers with multiple properties or income above ₹50 lakh

Includes:

• All from ITR-1, plus
• Capital gains
• Foreign income/assets
• More than one house property

ITR-3

For: Individuals and HUFs with income from business or profession

Applicable to:

• Defence officers earning from business/professional consultancy post-retirement
• Veterans running businesses or freelancing

Includes:

• All ITR-2 incomes
• Business/professional income

ITR-4 (Sugam)

For: Presumptive taxation under 44AD, 44ADA, 44AE

Applicable to:

• Retired army personnel running small businesses
• Freelancers using presumptive income

Limitations:

• Income should not exceed ₹2 crore for business or ₹50 lakh for profession
• Not applicable if you have foreign income/assets or are a director

ITR-5

For: Firms, LLPs, AOPs, BOIs, etc.
Not for defence personnel unless part of such an entity

ITR-6

For: Companies (excluding charitable trusts)
Not applicable to individuals

ITR-7

For: Trusts, political parties, and institutions under Section 139(4A)–(4D)
Applicable only if a trust/foundation run by ex-defence personnel needs to file

Table of ITR Forms

Which ITR Form is for Defence Personnel?

1. Active Army, Navy & Air Force Personnel:

• Recommended ITR Form: ITR-1 (if income ≤ ₹50 lakh)
• Why: Most are salaried and receive allowances; no business income involved
• Switch to ITR-2 if: You own more than one house or earn capital gains

2. Army Veterans or Retired Personnel:

• Recommended ITR Forms:
  • ITR-1 – if pension + interest only (and total income ≤ ₹50 lakh)
  • ITR-2 – if capital gains, multiple properties
  • ITR-3 – if you run a business or consultancy
  • ITR-4 – if eligible for presumptive taxation (Section 44ADA for professionals)

3. Defence Civilians:

• Recommended ITR Form:
  • ITR-1 (salary + interest)
  • ITR-2 (if capital gains, etc.)

Conclusion

Choosing the right ITR form ensures accurate tax filing and helps avoid unnecessary scrutiny or penalties. Whether you’re an active soldier, a veteran, or a defence civilian, selecting the correct form based on your income sources—salary, pension, capital gains, or business—is key.

To make the process smoother, udChalo offers tax filing services specially designed for armed forces personnel, simplifying everything from selecting the right ITR form to submitting your return online. Whether you're deployed on active duty or recently retired, you can file your returns with ease and confidence.

Secure your ITR filing at just ₹99 now and file later—beat the tax season rush and avoid surge pricing. Stay ahead, stay stress-free.

FAQs

1. Which ITR form should serving army personnel use?

ITR-1 is best suited if your income is below ₹50 lakh and you don’t have capital gains or business income.

2. Do army veterans file ITR-1 or ITR-2?

Both are applicable depending on your income type. For pension and interest, ITR-1 is sufficient. If you have capital gains or multiple properties, go for ITR-2.

3. Is income tax applicable to armed forces?

Yes, except for exempted allowances like field area allowance, uniform allowance, etc.

4. Can defence personnel claim deductions under Section 80C and 80D?

Yes, all deductions applicable to civilians are also available for defence personnel.

5. Can I file my ITR online if I’m stationed in a remote area?

Absolutely. With udChalo’s online tax filing services, you can file securely from anywhere, even in remote postings.

6. Is pension received after retirement taxable?

Yes. Pension is taxed under “Income from Salary.” However, udChalo can help you optimise your return and ensure all deductions are applied correctly.

7. Can retired defence officers file ITR if they start a business?

Yes. You will need to file ITR-3 or ITR-4, depending on your business type. udChalo’s team can help veterans choose the right form and handle filings.

8. What documents are required for ITR filing?

Form 16, pension slips, bank statements, PAN, Aadhaar, investment proofs, etc.

9. Is disability pension taxable for army personnel?

No. It is fully exempt from tax under government rules.

10. Where can I get help with ITR filing for defence personnel?

You can use the official Income Tax portal, or opt for udChalo’s dedicated tax filing services for armed forces, starting at just ₹99.

Lock your filing now for ₹99, file anytime later, and skip the surge during peak tax season.