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Which ITR Form Should I Choose? A Simple Guide

Filing taxes but unsure which ITR form to use? Follow this simple guide to choose between ITR-1, ITR-2, ITR-3, and ITR-4 based on your income sources in India.

6 min read · 2026-06-15

The alphabet soup of tax forms

The department has several ITR forms, and the wrong one gets your return marked defective under Section 139(9). Here is a beginner-friendly map.

Pick by income source

FormBest for
ITR-1 (Sahaj)Salary, one house, interest; income up to Rs 50 lakh
ITR-2Capital gains, multiple houses, foreign assets
ITR-3Business / profession, intraday, F&O
ITR-4 (Sugam)Presumptive business / profession up to Rs 50 lakh

Filing the wrong form is a leading cause of defective-return notices under Section 139(9) (Source: Income Tax Act, Section 139(9)).

Quick guide

  1. ITR-1: resident, income up to Rs 50 lakh, salary/pension, one house, other sources, farm income up to Rs 5,000. Not for capital gains or business.
  2. ITR-2: everything in ITR-1 with no Rs 50 lakh cap, plus capital gains, more than one house, foreign income/assets, unlisted shares.
  3. ITR-3: ITR-2 plus business or professional income, including intraday and F&O.
  4. ITR-4: presumptive income under 44AD/44ADA/44AE, where you declare a fixed percentage of receipts as profit.

What you should do

List your income sources first, then match to the simplest form that legally fits. Check AIS for hidden capital gains before choosing.

Common mistake

Defaulting to ITR-1 out of habit while AIS shows share sales. That mismatch triggers a defective-return notice.

How LastMinute ITR helps

LastMinute ITR categorises your AIS and Form 16 data so you know which form to select on the portal. Start at /file, import at /file/import/documents, and reconcile at /file/import/mismatch.

LastMinute ITR is a companion tool, not affiliated with the Income Tax Department. You file and e-verify your return yourself on incometax.gov.in.

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Which ITR Form Should I Choose? A Simple Guide · LastMinute ITR