Brief Description

ITR-1 (Sahaj)

ITR-1, also known as Sahaj, is a simple Income Tax Return form for resident individuals (not HUF) having total income up to ₹50 lakh from the following sources:

  • Salary or Pension

  • One House Property (not involving brought forward losses)

  • Other Sources (like interest, FD, etc., but not lottery or race winnings)

  • Agricultural Income up to ₹5,000

Who Cannot Use ITR-1:

  • Income above ₹50 lakh

  • Capital gains income

  • Business or profession income

  • More than one house property

  • Director in a company or held unlisted equity shares

  • Resident Not Ordinarily Resident (RNOR) or Non-Resident

 

ITR-2

ITR-2 is for individuals and Hindu Undivided Families (HUFs) not having income from business or profession.

✅ Who Can File ITR-2:

  • Income from salary/pension

  • Income from more than one house property

  • Capital gains (e.g., sale of shares, property)

  • Income from other sources (interest, dividends, etc.)

  • Foreign income/assets

  • Being a director in a company

  • Holding unlisted equity shares

  • Agricultural income over ₹5,000

  • Resident, RNOR, or Non-Resident

❌ Who Cannot File ITR-2:

  • If you have income from business or profession (use ITR-3 instead)

 

ITR-3

ITR-3 is for individuals and Hindu Undivided Families (HUFs) who have income from business or profession, not under presumptive taxation.

✅ Who Can File ITR-3:

  • Income from proprietorship business

  • Income from profession (e.g., doctors, CAs, consultants, freelancers)

  • Income from partnership firm (other than LLP) as a partner

  • Also includes:

    • Salary/pension

    • House property

    • Capital gains

    • Other sources (interest, dividends, etc.)

    • Foreign income/assets, if any

    • Being a director or holding unlisted shares

❌ Who Cannot File ITR-3:

  • Firms (they must use ITR-5)

  • LLPs (must use ITR-5)

  • Taxpayers using presumptive income scheme (they should file ITR-4)

 

ITR-4 (Sugam)

ITR-4, also known as Sugam, is for Resident Individuals, HUFs, and Firms (excluding LLPs) who have opted for presumptive income schemes under:

  • Section 44AD – Small businesses

  • Section 44ADA – Professionals (like doctors, lawyers, designers, etc.)

  • Section 44AE – Transporters owning goods vehicles

✅ Who Can File ITR-4:

  • Total income up to ₹50 lakh

  • Business or professional income under presumptive taxation

  • Also includes income from:

    • Salary/pension

    • One house property

    • Other sources (interest, etc.)

❌ Who Cannot File ITR-4:

  • Income above ₹50 lakh

  • Income from more than one house property

  • Capital gains

  • Income from speculative business or commission/brokerage

  • Director in a company or holder of unlisted shares

  • Having foreign assets or foreign income

  • Not opting for presumptive income scheme