# ITR Form Finder

> The ITR form depends on who you are and what income you have. Resident salaried individuals with income up to ₹50 lakh usually file ITR-1; anyone with capital gains beyond the ITR-1 limit, foreign assets or NRI status files ITR-2; business or professional income (including F&O trading) goes in ITR-3, or ITR-4 if you use presumptive taxation.

Interactive calculator: https://www.industax.com/calculators/itr-form-finder

- **Salaried, income ≤ ₹50L:** Usually ITR-1
- **Capital gains / NRI:** ITR-2
- **Business, F&O:** ITR-3

## 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

1. Salary ₹18 lakh, one rented flat, and a gain on selling equity mutual funds held for 3 years of ₹2 lakh.
2. ITR-1 allows LTCG on listed equity only up to ₹1.25 lakh, and this gain is ₹2 lakh.
3. There is no business income, so ITR-3 isn't needed.

**Result:** Correct form: ITR-2.

## FAQs

### Which ITR should an F&O trader file?

ITR-3, because F&O trading is business income. Filing it in ITR-2 leads to a defective-return notice.

### Can an NRI file ITR-1?

No. ITR-1 is only for residents (ordinarily resident). NRIs file ITR-2, or ITR-3 if they have business income in India.

### Can a freelancer file ITR-4?

Yes, if they opt for presumptive taxation under Section 44ADA (receipts up to ₹75 lakh when cash receipts are within 5%, otherwise ₹50 lakh), declare at least 50% as income, and total income is up to ₹50 lakh. Otherwise ITR-3.

## Official sources

- Income Tax Department: https://www.incometax.gov.in/

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Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.