Which ITR Form Should You File? A Simple Guide

Choosing the right ITR form is the first step to filing your income tax return correctly. Filing with the wrong form can lead to a defective return notice from the Income Tax Department.

ITR-1 (Sahaj)

For: Resident individuals with total income up to Rs 50 lakh.

• Salary / Pension
• One house property
• Other sources (interest, etc.)
• Agricultural income up to Rs 5,000

Cannot use if: You have capital gains, more than one house property, foreign assets, or income from business/profession.

ITR-2

For: Individuals and HUFs not having income from business or profession.

• Capital gains from stocks, mutual funds, or property
• More than one house property
• Foreign income or foreign assets
• Income above Rs 50 lakh

ITR-3

For: Individuals and HUFs having income from business or profession.

• You're a freelancer or consultant not opting for presumptive taxation
• You run a business
• You're a partner in a firm

ITR-4 (Sugam)

For: Individuals, HUFs, and firms (other than LLP) opting for presumptive taxation.

• Business income under Section 44AD (turnover up to Rs 2 crore)
• Professional income under Section 44ADA (receipts up to Rs 50 lakh)
• Total income up to Rs 50 lakh

Quick Decision Tree

1. Are you salaried with no capital gains? -> **ITR-1**
2. Have capital gains or foreign assets? -> **ITR-2**
3. Freelancer or business owner? -> **ITR-3 or ITR-4**
4. Opting for presumptive taxation? -> **ITR-4**

When in doubt, consult a qualified CA. A wrong form selection wastes time and may trigger scrutiny.