Answer a few simple questions regarding your income sources to instantly determine the correct Income Tax Return form (ITR-1 Sahaj, ITR-2, ITR-3, or ITR-4).
For resident individuals with total income up to ₹50 Lakhs from Salary, One House Property, and Other Sources (interest, dividends).
Filing an incorrect ITR form will trigger a Defective Return Notice under Section 139(9).
Choosing the correct ITR form is a mandatory legal obligation under the Income Tax Act, 1961. Filing on an incorrect form invalidates the return and triggers Section 139(9) defective notices.
ITR-1 (Sahaj): Simplest form for Resident Individuals having income ≤ ₹50 Lakhs from Salary, 1 House Property, and Other Sources.
ITR-2: For Individuals & HUFs having Capital Gains, foreign assets, unlisted shares, directorship, or multiple house properties (NO business income).
ITR-4 (Sugam): For Resident Individuals, HUFs & Firms (non-LLP) with total income ≤ ₹50 Lakhs having presumptive business/profession income u/s 44AD, 44ADA, or 44AE.
ITR-3: Comprehensive form for Individuals & HUFs carrying on proprietary business/profession maintaining regular books of accounts or having intraday/F&O trading.
| ITR Form | Eligible Assessee | Income Heads Permitted | Major Exclusions / Barred |
|---|---|---|---|
| ITR-1 (Sahaj) | Resident Individuals | Salary, 1 House Property, Other Sources (Total ≤ ₹50L) | Capital gains, business, unlisted shares, directorship |
| ITR-2 | Individuals & HUFs | Salary, Multiple Houses, Capital Gains, Foreign Assets | Income from Business or Profession |
| ITR-4 (Sugam) | Residents (Indiv/HUF/Firm) | Presumptive Business u/s 44AD, 44ADA, 44AE (Total ≤ ₹50L) | Capital gains, turnover > ₹50L/₹3Cr, unlisted shares |
| ITR-3 | Individuals & HUFs | All income heads including Proprietary Business & F&O Trading | None (Most comprehensive individual form) |
For delivery stock/mutual fund trading and crypto, use ITR-2. For intraday trading (speculative business) or Futures & Options (F&O non-speculative business), you must file ITR-3.
No. ITR-1 and ITR-4 can only be filed by Resident and Ordinarily Resident (ROR) taxpayers. Non-Resident Indians (NRIs) and RNORs must file ITR-2 or ITR-3.
Holding unlisted shares or foreign assets (Schedule FA) immediately requires filing ITR-2 (or ITR-3 if you have business income).