ITR Form Guide: Which ITR Form to Use? ITR-1, ITR-2, ITR-3, ITR-4 Explained
Filing the wrong ITR form is a defective return. This guide explains each form — who it's for, what income it covers, and which to choose for your situation.
Overview: ITR Forms at a glance
India has 7 ITR forms. Most individuals and professionals use ITR-1 to ITR-4. Here's a quick guide:
| Form | Who Uses It | Key Income Types |
|---|---|---|
| ITR-1 (Sahaj) | Resident individuals | Salary, one house property, interest — income up to ₹50L |
| ITR-2 | Individuals/HUFs (no business) | Capital gains, multiple properties, foreign income, NRI |
| ITR-3 | Business/profession (regular books) | Business income with full books of accounts |
| ITR-4 (Sugam) | Presumptive income filers | Business/profession under 44AD/44ADA — up to ₹75L (services) |
| ITR-5 | LLPs, firms, AOPs | Partnership firms, LLPs, BOI |
| ITR-6 | Companies | All companies except Sec 11 trusts |
| ITR-7 | Trusts, charitable orgs | Sec 139(4A) to 139(4D) filers |
ITR-1 (Sahaj) — Who should use it?
ITR-1 is for resident individuals with simple income. Use ITR-1 only if all the following apply:
- Total income is up to ₹50 lakh
- Income is from salary/pension only
- Income from one house property (not loss carried forward)
- Income from other sources — only interest and family pension
- NOT applicable: capital gains of any kind, foreign income, more than one house property, business/profession income, agricultural income above ₹5,000
ITR-2 — Who should use it?
ITR-2 is for individuals and HUFs who are NOT eligible for ITR-1 but don't have business/professional income. Use ITR-2 if you have:
- Capital gains — stocks, mutual funds, crypto, property (any amount)
- Foreign income or foreign assets (Schedule FA is in ITR-2)
- More than one house property
- Agricultural income above ₹5,000
- Income from salary above ₹50 lakh
- NRIs with Indian source income who have no business income
- Director in a company or with unlisted share investments
ITR-3 — Who should use it?
ITR-3 is for individuals and HUFs carrying on a profession or business and maintaining regular books of accounts. Use ITR-3 if you are:
- Freelancer or consultant with receipts above ₹75L (can't use 44ADA)
- Business owner maintaining full books of accounts
- Professional opting out of presumptive scheme 44ADA
- Partner in a firm (not LLP)
- Director in a company with business/professional income
- Anyone with F&O (futures and options) trading income
ITR-4 (Sugam) — Who should use it?
ITR-4 is the simplest form for individuals with business or professional income under the presumptive taxation scheme:
- Section 44AD: Small business owners with turnover up to ₹3 crore (or ₹2 crore if non-digital) — 8% (digital) or 6% profit presumed
- Section 44ADA: Specified professionals (doctors, CAs, engineers, lawyers, etc.) with receipts up to ₹75 lakh — 50% profit presumed
- Section 44AE: Goods transport operators
- Also requires: total income below ₹50L (if only from presumptive + salary + one house property + interest)
- NOT available to: NRIs, those with capital gains, foreign income, or multiple house property losses
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