| Form | FY 2023-24 | FY 2024-25 | FY 2025-26 | 3-Year CAGR |
|---|
| ITR-1 | 4.65 Cr | 4.82 Cr | 4.68 Cr | 0.2% |
| ITR-2 | 0.82 Cr | 1.12 Cr | 1.33 Cr | 17.5% |
| ITR-3 | 0.88 Cr | 0.98 Cr | 1.04 Cr | 5.8% |
| ITR-4 | 1.58 Cr | 1.64 Cr | 1.58 Cr | 0% |
The Structural Shift
ITR-2 has grown 62% in just three years, making it the fastest-growing form by far. The driver is clear: India's salaried class is investing in equity markets at an unprecedented rate. Demat accounts crossed 15 crore, SIP AUM hit record highs, and platforms like Zerodha, Groww, and Angel One have made investing accessible to anyone with a phone.
| Form | For Whom | Key Trigger |
|---|
| ITR-1 | Salaried, income ≤ Rs 50L, no capital gains | Simplest form, no investments |
| ITR-2 | Salaried with capital gains or foreign assets | Stocks, MFs, property sale |
| ITR-3 | Business/profession income | Freelancing, consulting, business |
| ITR-4 | Presumptive taxation | Small business, turnover < Rs 3 Cr |
Implications
- Filing complexity is increasing for the average taxpayer
- More people need Schedule CG (capital gains) knowledge
- Form 26AS/AIS reconciliation becomes critical as more transactions are tracked
- The government's data net is widening — every stock trade, MF redemption, and property sale is reported