ITR-1, ITR-2, ITR-3 or ITR-4: Which income tax return form is applicable for you? Explained

Income Tax Return: As we enter the tax season, taxpayers will have to file their Income Tax Return (ITR). The deadline to file ITR 2025-26 is September 15.

While filing their tax return, every taxpayer should submit their filingss via the relevant ITR forms. There are different types of ITR forms depending on the type of income of the individual and how much they earn.

The most common type of ITR forms are ITR-1, ITR-2, ITR-3 and ITR-4.

However, it can get confusing as to which form you should fill in order to file and verify your ITR. Any mistake can entail a defaulted ITR, which could get you slapped with income tax notice and other penalties.

To avoid such confusion, here is a breakdown of which Income Tax Return form you should file — ITR-1, ITR-2, ITR-3 or ITR-4?

ITR-1 (Sahaj)

The ITR-1 (Sahaj) form is meant for individuals having an income of ₹50 lakh or less. The income source can be: salary/pension, one house property, other sources (interest, family pension, dividend etc.), agricultural income up to ₹5,000, capital gain income u/s 112A up to ₹1,25,000.

However, if you have a short-term capital gain, are a director of a company, any unlisted equity shares at any time during the previous year and have financial asset outside India, you are not eligible to file ITR-1 form.

ITR-2

ITR-2 form is applicable to individuals who do not fit under ITR-1 and for Hindu Undivided Families (HUF). This form will be applicable if you do not have income from business or profession.

Taxpayers with Income from Business or Profession cannot file ITR-2.

ITR-3

This return is applicable for Individual and Hindu Undivided Family (HUF) who have income from a business or profession and are required to maintain books of accounts.

The ITR-3 is also applicable to those who had investments in unlisted equity shares at any time during the financial year. In short, individuals not eligible for ITR-1, ITR-2 or ITR-4 are required to file ITR-3.

ITR-4 (Sugam)

ITR-4 or Sugam is the Income Tax Return form applicable for individuals, Hindu Undivided Families (HUFs), and firms (other than LLPs) if they have opted for the presumptive income scheme under Section 44AD, 44ADA, or 44AE of the Income Tax Act.

ITR-4 cannot be used by someone who —

(a) is a Director in a company

(b) has short term capital gains

(c) has Long-term capital gain u/s 112A exceeding ₹1.25 lakh

(d) has held any unlisted equity shares at any time during the previous year

(e) has any asset (including financial interest in any entity) located outside India

(f) has signing authority in any account located outside India

(g) has income from any source outside India

(h) is a person in whose case payment or deduction of tax has been deferred on ESOP

(i) who has any brought forward loss or loss to be carried forward under any head of income

(j) has total income exceeding ₹50 lakh