ITR forms at a glance
| Form | Who files it |
|---|---|
| ITR-1 (Sahaj) | Resident individuals with income up to ₹50 lakh from salary, one house property, other sources and LTCG on listed equity up to ₹1.25 lakh |
| ITR-2 | Individuals and HUFs without business income — capital gains, more than one house, foreign income or assets, NRIs, company directors, unlisted shares |
| ITR-3 | Individuals and HUFs with business or professional income, including F&O and intraday trading |
| ITR-4 (Sugam) | Resident individuals, HUFs and firms (not LLPs) with presumptive income under 44AD, 44ADA or 44AE, total income up to ₹50 lakh |
| ITR-5 | Firms, LLPs, AOPs, BOIs and similar entities |
| ITR-6 | Companies other than those claiming exemption as charitable institutions |
| ITR-7 | Trusts, political parties, institutions and others filing under Sections 139(4A)–(4D) |
Common reasons you can't use ITR-1
- Total income above ₹50 lakh
- You're an NRI or resident but not ordinarily resident
- You were a director of a company
- You held unlisted equity shares during the year
- You have foreign assets or foreign income
- Capital gains other than listed-equity LTCG up to ₹1.25 lakh
- More than one house property
- Agricultural income above ₹5,000
What happens if you file the wrong form
The Centralised Processing Centre treats it as a defective return and issues a notice under Section 139(9), giving you 15 days to file a corrected return in the right form. If you don't respond, the return is treated as never filed — which means losing carried-forward losses and paying late fees.
Worked example: salaried employee who sold mutual funds
- 1Salary ₹18 lakh, one rented flat, and a gain on selling equity mutual funds held for 3 years of ₹2 lakh.
- 2ITR-1 allows LTCG on listed equity only up to ₹1.25 lakh, and this gain is ₹2 lakh.
- 3There is no business income, so ITR-3 isn't needed.
Correct form: ITR-2.
