Filing your Income Tax Return (ITR) correctly is essential to stay compliant with Indian tax laws and avoid penalties. However, many taxpayers get confused about which ITR form they need to file. Here's a quick guide to help you understand the right ITR form based on your income sources and eligibility.
1. ITR-1 (Sahaj)
Who can file:
- Resident individuals with total income up to ₹50 lakh
- Income from salary or pension
- Income from one house property
- Income from other sources (like interest income)
Who cannot file:
- Non-residents
- Individuals with capital gains
- Income from more than one house property or business/profession
2. ITR-2
Who can file:
- Individuals and HUFs not having income from business or profession
- Capital gains income
- More than one house property
- Foreign income or assets
3. ITR-3
Who can file:
- Individuals and HUFs having income from business or profession
- Includes income as a partner in a firm
4. ITR-4 (Sugam)
Who can file:
- Resident individuals, HUFs, and firms (other than LLPs)
- Income up to ₹50 lakh
- Income from business or profession under presumptive taxation scheme (Sections 44AD, 44ADA, or 44AE)
Who cannot file:
- If income includes capital gains, foreign income, or more than one house property
Here's a summary table that makes it easy to understand Which ITR to File and Who is Eligible:
| ITR Form | Applicable For | Key Eligibility | Not Applicable For |
|---|---|---|---|
| ITR-1 (Sahaj) | Resident Individuals | - Income up to ₹50 lakh- Salary/Pension- One House Property- Other sources (e.g., interest) | - Capital gains- Business income- More than one house property- Non-residents |
| ITR-2 | Individuals & HUFs | - Capital gains- More than one house property- Foreign assets/income | - Business or profession income |
| ITR-3 | Individuals & HUFs | - Income from business/profession- Income as partner in firm | - Salaried individuals with no business income (should use ITR-1/2) |
| ITR-4 (Sugam) | Resident Individuals, HUFs & Firms (non-LLP) | - Income up to ₹50 lakh- Business/profession under presumptive taxation (Sec 44AD/ADA/AE) | - Capital gains- Foreign assets/income- More than one house property- LLPs |
Choosing the Right ITR
Selecting the correct form depends on your income type, amount, and residential status. Filing the wrong form can lead to notices from the Income Tax Department or rejection of your return.
Before filing, gather all documents like Form 16, bank statements, capital gain statements, and TDS certificates to ensure accurate reporting.
Need Help?
If you're still unsure which ITR form applies to you, consult us "JRS" a tax expert or use the income tax department's utility on www.incometax.gov.in.
