Income tax
Which ITR Form Should You Use?
A beginner-friendly map of ITR-1, ITR-2, ITR-3 and ITR-4, plus the conditions that can rule out an otherwise familiar form.
About this guide
Reference directory
ITR-1 in simple terms
ITR-1 is designed for eligible resident individuals with relatively simple income, commonly salary or pension, one house property and specified other income within the notified total-income limit. Conditions such as directorship, unlisted equity shares, certain capital gains or foreign assets can make a taxpayer ineligible even when salary is the main income.
When ITR-2 is relevant
ITR-2 is generally used by individuals or Hindu Undivided Families who do not have business or professional income but cannot use ITR-1. It commonly becomes relevant for more complex capital gains, more than one house property, foreign assets or other conditions outside ITR-1.
ITR-3 and business income
ITR-3 generally covers individuals and HUFs with income from a proprietary business or profession. It can also include salary, house property, capital gains and other income in the same return. Books, balance-sheet information and audit questions may require professional attention.
ITR-4 and presumptive taxation
ITR-4 is a simplified return for eligible resident individuals, HUFs and firms other than LLPs using specified presumptive-tax provisions, subject to notified conditions and limits. It is not automatically available to every freelancer or small business.
Selection checklist
List every income source first: salary, interest, rent, capital gains, foreign income, business and profession. Then check residential status and disqualifying conditions. Match this list with the current portal eligibility page before starting the return. Choosing the wrong form can make a return defective.
Sources and verification
Use these references to verify this income tax guide. Check the document date, relevant period and any conditions before relying on a figure or rule.
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