which itr form to fill for salaried person

4 ITR forms to be filled for a Salaried Person (in Detail).

When it comes to filing Income Tax returns, a common person like you and I got confused with different ITR forms available to be filed.

In today’s article, you’ll learn about which ITR form to fill for a salaried person so that you can comfortably fill the appropriate ITR form.

Before digging deep, I would like to tell you that there are a total of 7 ITR forms that you can categorize as below –

  • Salaried person only – ITR-1 
  • Salaried with income from business/profession – ITR-2 to ITR-4
  • Business income – ITR-5 to ITR-7

So you can now understand the first 4 forms (ITR-1 to ITR-4) are for salaried people and the last 3 forms (ITR-5 to ITR-6) are for businesses and companies.

Let’s discuss which ITR forms to fill for a salaried person in detail.

Types of ITR Forms for Salaried Person

#1. ITR-1 (Sahaj) Form

If you are a salaried person or pensioner with a total income of up to Rs. 50,00,000, then you should file your income tax returns with the ITR-1 (Sahaj) form. 

ITR-1 is called Sahaj because it has been designed to be filed easily for salary earners. 

Along with your salaried income, you can also include “Income from Other Sources” as mentioned below –

  • Income from one house property only
  • Income from Agriculture (income shouldn’t exceed Rs. 5,000)

Who can’t use the ITR-1 Form

  • If your total income exceeds Rs.50 lakh
  • If agricultural income exceeds Rs 5000 p.a.
  • Having taxable capital gains
  • Income from business or profession
  • Income from more than one house property
  • If you are a Director in a company
  • Invested in unlisted equity shares at any time during the fiscal year
  • Owning assets outside India i.e. foreign assets or foreign income
  • Casual income like Winnings from Lottery and Income from Race Horses

#2. ITR-2 Form

You can fill out the ITR-2 Form if you are an individual or HUF if your total income exceeds Rs. 50 lakh in a financial year. Your income may include –

  • Income from Salary (or Pension) or
  • Income from House Property (More than one); or
  • Income from Other Sources (including Winnings from Lottery and Income from Race Horses).
  • If you are an Individual Director in a company
  • Having invested in unlisted equity shares at any time during the fiscal year
  • Income from Capital Gains; or
  • Foreign Assets/Foreign income
  • Agricultural income of more than Rs 5,000

Who can’t use ITR-2 Form

  • If you also have income from a Business or Profession.

#3. ITR-3 Form

You can file your return using the ITR-3 form if you receive income not only from salary but also from a proprietary business or a profession. You are eligible to file ITR 3 if your income sources are –

  • Income from Salary/Pension
  • A business or profession
  • You are an Individual Director in a company
  • Invested in unlisted equity shares at any time during the fiscal year
  • Income from House Property
  • Income from other sources
  • Income from being a partner in the partnership firm

Who can’t use ITR-3

  • Any person other than an individual or a HUF
  • An individual or a HUF does not have income from the business

#4. ITR-4 Form

ITR-4 is called Sugam as it is easy to fill for individuals or businesses because you don’t have to maintain proper account books and calculate your profit & loss. Your income is assumed based on the gross receipts of your business and tax is calculated on that estimate. 

You can go for ITR-4 if you are an individual, a HUF, or a Partnership firm(not  LLP), and your income includes:

  • Income from salary or pension not exceeding Rs.50 lakh
  • Business income as per the presumptive income scheme u/s 44AD or 44AE (turnover not exceeding Rs 2 crore)
  • Professional income as per presumptive income scheme u/s 44ADA
  • Income from one house property, not more than Rs.50 lakh 
  • Income from other sources (excluding income from lottery and racehorses)

A freelancer can also file ITR under the presumptive scheme if your gross receipts are under Rs.50 lakhs.

Who can’t use ITR-4

  • Your total income is above Rs 50 lakh
  • If your business turnover exceeds Rs 2 crore, you will have to file ITR-3.
  • Income from more than one house property
  • If you have any brought forward loss or any loss to be carried forward under any head of income
  • You are a signing authority in any account outside India
  • You are a Director of a company
  • Invested in unlisted equity shares at any time during the fiscal year
  • Having foreign assets or foreign income

Also read – Best income tax software in India

ITR Forms for Salaried Person – Comparison

ITR forms comparison

Check out – How to download ITR acknowledgement

Conclusion

Since you now have a better understanding of all 4 ITR forms for salaried people, you can easily decide whether you can use ITR 1 or any other form as per your income sources.

If you have any further questions, do let me know in the comments section.