Which ITR Form to File: ITR-1 to ITR-7 Explained

The right ITR form depends on who you are and what you earn. Salaried residents with simple income use ITR-1, people with business income use ITR-3 or ITR-4, firms use ITR-5, companies use ITR-6, and trusts use ITR-7. Picking the wrong form can make the return defective.

Why the form matters

A return filed on the wrong form can draw a defective-return notice, and you then have to refile. If you are unsure, a quick look by our team on income tax return filing saves that back-and-forth.

Which form for whom

• ITR-1 (Sahaj): resident individuals with total income up to Rs 50 lakh from salary or pension, one house property and other sources like interest. Per incometax.gov.in, you cannot use it if you are a company director, hold foreign assets, or have unlisted shares.
• ITR-2: individuals and HUFs who cannot use ITR-1 and have no business income, for example those with short-term capital gains or foreign income.
• ITR-3: individuals and HUFs with business or professional income, including traders in futures and options.
• ITR-4 (Sugam): residents on presumptive taxation for small businesses and professionals, within the income limit.
• ITR-5: firms, LLPs, AOPs and similar bodies.
• ITR-6: companies, other than those claiming charitable exemption.
• ITR-7: trusts, NGOs and institutions. See ITR-7 for trusts and NGOs.

How to decide quickly

Start from your entity type. For an individual, ask: any business income? Any capital gains beyond the small limit? Any foreign asset? Each yes pushes you from ITR-1 towards ITR-2 or ITR-3. Salary plus share sales, for instance, often lands on ITR-2. Crypto gains also need care, so see capital gains filing and crypto tax filing if that applies to you.

Common mistakes

• Using ITR-1 despite being a director in a company.
• Skipping a small side income or freelance receipts and filing as salaried only.
• Filing ITR-4 while having foreign assets.
• Not checking the form applicable for the current assessment year, since limits and rules can change.

Related guides: AIS and Form 26AS, Form 16, PAN card

FAQs

Can a salaried person file ITR-4?

Only if they also have presumptive business or professional income and meet the conditions. Pure salary goes on ITR-1 or ITR-2.

I am a company director. Which form do I use?

Not ITR-1. Usually ITR-2 or ITR-3, depending on whether you have business income.

Which form does a private limited company file?

ITR-6.

Still unsure about your form? Talk to a Taxhint expert before you file.