ITR 1 Filing Online
— Sahaj Form for Salaried Individuals

ITR-2 is applicable for resident and non-resident individuals and Hindu Undivided Families (HUFs) who do not have income from profits and gains from business or profession. ITR-2 is suitable for:

• Individuals with total income exceeding ₹50 lakhs
• Those having capital gains income (short-term or long-term)
• Individuals owning more than one house property
• NRIs and RNORs (Residents Not Ordinarily Resident)
• Individuals with foreign assets or income
• Directors of a company
• Individuals holding unlisted equity shares
• Those having agricultural income exceeding ₹5,000

In short, if your income is more complex than salary and simple other-source income, ITR-2 is likely your form.

ITR-1 (SAHAJ) is used to report and File Income Tax Returns by eligible salaried resident individuals in India. It serves the following purposes:

• Declaring total income from salary, pension, one house property, and other sources
• Claiming deductions under Chapter VI-A (such as 80C, 80D, 80G, etc.)
• Reporting taxes deducted at source (TDS) and claiming refunds
• Disclosing long-term capital gains under Section 112A up to ₹1.25 lakhs
• Complying with the legal obligation to file ITR under the Income Tax Act, 1961
• Building a documented income history for loan applications, visa processing, and more

ITR-1 is the most commonly filed return in India due to its simplicity and applicability to salaried taxpayers.

ITR-1 (SAHAJ) is the correct form for most salaried employees in India.

ITR-4 (SUGAM), on the other hand, is meant for individuals, HUFs, and firms (other than LLPs) who have income from business or profession computed on a presumptive basis under Sections 44AD, 44ADA, or 44AE.

Here is a quick comparison:

• ITR-1: For salaried employees with income up to ₹50 lakhs from salary, one house property, and other sources
• ITR-4: For freelancers, small business owners, and professionals opting for presumptive taxation

If you are a salaried individual with no business income, file ITR-1. If you are a salaried individual who also has freelance or professional income and opts for presumptive taxation, ITR-4 may be more appropriate — but consult a CA to be sure.

There are several important reasons to file ITR-1:

Legal Compliance: Under the Income Tax Act, 1961, individuals meeting income thresholds are legally required to file ITR. Failure to file can attract penalties under Section 234F (up to ₹5,000 or ₹1,000 for small taxpayers).

Claiming Tax Refund: If excess TDS has been deducted from your salary, filing ITR-1 is mandatory to claim that refund.

Loan & Credit Card Applications: Banks and NBFCs ask for ITR as proof of income for home loans, personal loans, and credit cards.

Visa Applications: Many embassies require ITR copies as financial proof for visa processing.

Carrying Forward Losses: Filing on time allows you to carry forward losses (where applicable).

Building Financial History: A filed ITR is a reliable proof of income that helps in various financial and legal scenarios.

Even if your income is below the taxable limit, filing a nil return is considered good financial practice.

ITR-2 is an Income Tax Return form for individuals and HUFs who do not have income from business or profession. It is a more detailed form compared to ITR-1.

Who should file ITR-2:

• Individuals with capital gains income (sale of property, stocks, mutual funds)
• Those with income from more than one house property
• NRIs or RNORs filing Indian income tax returns
• Individuals with foreign income or assets
• Directors of companies
• Individuals holding unlisted shares
• Those with total income above ₹50 lakhs
• Individuals with agricultural income above ₹5,000

ITR-2 covers a broader range of incomes than ITR-1 but does not cover business or professional income, for which ITR-3 or ITR-4 must be used.

Filing ITR-1 online is straightforward. Here is how to do it:

Step 1: Visit the Income Tax e-filing portal at incometax.gov.in and log in with your PAN credentials.

Step 2: Go to “e-File” > “Income Tax Returns” > “File Income Tax Return.”

Step 3: Select the correct Assessment Year (AY) and choose ITR-1 as the applicable form.

Step 4: Choose the filing mode — “Online” is recommended for ITR-1 as it is pre-filled with data from Form 16, AIS, and TIS.

Step 5: Verify pre-filled data including salary, TDS, deductions, and personal details. Make corrections if needed.

Step 6: Fill in the deductions you are claiming (80C, 80D, HRA, LTA, etc.).

Step 7: Review the tax computation and ensure tax payable is zero (or pay any remaining dues via Challan 280).

Step 8: Submit the return and e-verify it using Aadhaar OTP, Net Banking, or EVC.

The filing is complete once verified. You will receive an ITR-V acknowledgement on your registered email.

Alternatively, let SetupFiling.in handle your ITR-1 Filing end-to-end — error-free and before the deadline.

Yes, you can file ITR-1 yourself using the Income Tax Department’s e-filing portal (incometax.gov.in). The portal is user-friendly, and for ITR-1, it pre-fills most data from your Form 16, AIS (Annual Information Statement), and TIS (Taxpayer Information Summary).

However, filing ITR with a CA is advisable in the following situations:

• You have multiple income sources
• You are unsure which ITR form applies to you
• You have capital gains, foreign income, or business income
• You want to maximise deductions and reduce tax liability legally
• You have received an income tax notice
• You want to avoid mistakes that can lead to penalties or scrutiny

For ITR-1, most salaried individuals can self-file. But for peace of mind and accuracy, SetupFiling.in’s experienced Chartered Accountants are here to help at an affordable fee.

For most salaried employees, ITR-1 (SAHAJ) is the correct and simpler form.

Use ITR-1 if you are a salaried individual with:

• Total income up to ₹50 lakhs
• Income only from salary, one house property, and/or other sources like interest
• No capital gains (or only LTCG u/s 112A up to ₹1.25 lakhs)

Use ITR-2 if you are a salaried individual but also have:

• Capital gains from sale of property, stocks, or mutual funds
• Income from more than one house property
• Foreign income or assets
• Total income exceeding ₹50 lakhs

In simple terms, a regular salaried employee files ITR-1. A salaried employee with investments in stocks/mutual funds with taxable capital gains files ITR-2.

CA charges for ITR filing in India vary based on complexity:

• ITR-1 (salaried individuals): ₹500 – ₹2,000
• ITR-2 (capital gains, multiple properties): ₹1,500 – ₹5,000
• ITR-3 (business/professional income): ₹3,000 – ₹10,000+
• ITR-4 (presumptive income): ₹1,000 – ₹4,000

Fees also depend on the CA’s experience, city (metro vs. tier-2), and volume of transactions involved.

Here is a quick eligibility guide:

ITR-1 (SAHAJ): Resident individuals with income up to ₹50 lakhs from salary, one house property, and other sources (including LTCG u/s 112A up to ₹1.25 lakhs).

ITR-2: Individuals and HUFs with capital gains, multiple house properties, foreign income/assets, NRIs, or income above ₹50 lakhs — but no business/professional income.

ITR-3: Individuals and HUFs having income from business or profession (not under presumptive taxation) along with any other income.

ITR-4 (SUGAM): Individuals, HUFs, and firms (other than LLPs) who opt for presumptive taxation under Sections 44AD, 44ADA, or 44AE, with total income up to ₹50 lakhs.

Choosing the wrong ITR form can lead to a defective return notice from the Income Tax Department. Always verify before filing.

In essence, ITR-1 is for straightforward salaried taxpayers, while ITR-2 covers a wider but still non-business income profile.

File ITR-1 if you are: A resident Indian individual with salary/pension income, one house property, and simple other income (interest, dividends), with total income up to ₹50 lakhs and no capital gains (beyond the Section 112A threshold).

File ITR-2 if you are: An individual or HUF with capital gains, multiple house properties, foreign assets, NRI status, or income above ₹50 lakhs — but no business or professional income.

If you have any business or professional income, you will need ITR-3 or ITR-4 depending on whether you opt for presumptive taxation.

ITR-2 is eligible for individuals and HUFs who:

• Have income above ₹50 lakhs
• Have capital gains (short-term or long-term) from sale of property, shares, or mutual funds
• Own more than one house property
• Are NRIs or RNORs (Residents Not Ordinarily Resident)
• Hold foreign assets or have foreign income
• Are directors in a company
• Hold unlisted equity shares
• Have agricultural income above ₹5,000

ITR-2 is NOT applicable if you have income from business or profession — use ITR-3 in that case.

Filing the wrong ITR form is treated as a defective return under Section 139(9) of the Income Tax Act. If you file ITR-1 when you should have filed ITR-2:

• The Income Tax Department may issue a defective return notice
• You will be given an opportunity (typically 15 days) to correct and refile
• If not corrected, the return may be treated as invalid (as if not filed), attracting late filing penalties under Section 234F and interest under Sections 234A/234B/234C
• In serious cases, it could trigger tax scrutiny

Always verify eligibility before filing. If in doubt, consult a CA or use SetupFiling.in’s guided filing service.

ITR-2: For individuals and HUFs with no business or professional income but with complex income profiles — capital gains, foreign income, multiple properties, NRI status.

ITR-3: For individuals and HUFs who have income from profits and gains of business or profession — either under regular accounting or not under presumptive taxation. This includes proprietors, freelancers, and partners in a firm.

The key distinguishing factor is business or professional income. If you have it, ITR-3 (or ITR-4 for presumptive) applies. If you don’t, ITR-2 covers most complex non-business scenarios.

ITR-1 (SAHAJ) is used for:

• Filing income tax returns by resident salaried individuals and pensioners
• Reporting income from salary, pension, one house property, and other sources
• Claiming tax deductions under Section 80C, 80D, 80G, HRA, LTA, etc.
• Reporting and claiming TDS refunds
• Disclosing income and complying with statutory obligations under the Income Tax Act
• Serving as proof of income for financial transactions (loans, visas, investments)

It is the most filed ITR form in India and is pre-filled with data from employer-reported Form 16 and other sources.

Yes — and for ITR-1, many taxpayers file successfully on their own using the IT Department’s portal. The online ITR-1 is largely pre-filled.

However, hiring a CA (or a professional service like SetupFiling.in) is recommended when:

• You are unsure about which form to use
• You have deductions you want to fully optimise (HRA, 80C, 80D, NPS, etc.)
• You want to avoid a defective return or notice
• You have multiple income sources even within ITR-1 scope
• You want end-to-end support — from document collection to e-verification

SetupFiling.in’s CA-assisted ITR filing ensures zero errors and maximum tax savings.

Use this simple checklist to decide:

Choose ITR-1 if ALL of these apply:

• You are a resident Indian individual
• Total income is ₹50 lakhs or below
• Income is from salary, pension, one house property, or simple other sources (interest/dividends)
• You have no capital gains (or only LTCG u/s 112A up to ₹1.25 lakhs)
• You are not a director in any company
• You do not hold unlisted shares
• You have no foreign assets or income

Choose ITR-2 if ANY of these apply:

• Total income exceeds ₹50 lakhs
• You have capital gains from shares, property, or MFs
• You own more than one house property
• You are an NRI or RNOR
• You have foreign assets or income
• You are a company director or hold unlisted shares

If you have business or professional income, move to ITR-3 or ITR-4.

If you earn from both salary and a small business/freelancing under presumptive taxation, ITR-4 is appropriate. Pure salaried individuals file ITR-1.

ITR-1 should be filed by 31st July of the Assessment Year for individuals not subject to tax audit. For example, for FY 2024-25 (AY 2025-26), the due date is 31st July 2025.

If you miss this deadline, you can file a Belated Return up to 31st December of the Assessment Year, but with a late fee under Section 234F:

• ₹5,000 if total income exceeds ₹5 lakhs
• ₹1,000 if total income is ₹5 lakhs or below

Additionally, interest under Sections 234A, 234B, and 234C may apply on outstanding tax dues.

Always file on time to avoid penalties and preserve the right to carry forward losses.

ITR-1 is filed for resident Indian individuals with the following income:

• Salary or pension from one or more employers
• Income from one house property (rent or deemed rent)
• Income from other sources (savings account interest, FD interest, dividends)
• Long-term capital gains under Section 112A up to ₹1.25 lakhs

Steps to file:

1. Log in to incometax.gov.in with your PAN
2. Select “File Income Tax Return” for the correct AY
3. Choose ITR-1 form and verify pre-filled data
4. Add deductions and review tax computation
5. Pay any outstanding tax and submit
6. E-verify using Aadhaar OTP, net banking, or demat account EVC

SetupFiling.in offers completely managed ITR-1 filing for individuals, ensuring accuracy and compliance.

ITR-1: Resident individuals – salary, one house property, other income, total up to ₹50 lakhs, no capital gains beyond LTCG 112A limit.

ITR-2: Individuals and HUFs – capital gains, multiple properties, NRIs, foreign income, no business income.

ITR-3: Individuals and HUFs – business or professional income not under presumptive scheme.

ITR-4: Individuals, HUFs, firms – business/professional income under presumptive taxation (44AD, 44ADA, 44AE), income up to ₹50 lakhs.

The primary difference lies in the complexity and source of income:

ITR-1 is designed for simple, single-source salary income. It does not accommodate capital gains, foreign income, multiple house properties, NRI status, or income above ₹50 lakhs.

ITR-2 is a more comprehensive form that handles all of the above, except business or professional income. It is suitable for investors, NRIs, and individuals with diverse passive income streams.

Choosing the wrong form leads to a defective return notice. The Income Tax Department’s AIS/TIS system now cross-verifies all income data, making accuracy more critical than ever.

Filing ITR-1 online is straightforward. Here is how to do it:

Step 1: Visit the Income Tax e-filing portal at incometax.gov.in and log in with your PAN credentials.

Step 2: Go to “e-File” > “Income Tax Returns” > “File Income Tax Return.”

Step 3: Select the correct Assessment Year (AY) and choose ITR-1 as the applicable form.

Step 4: Choose the filing mode — “Online” is recommended for ITR-1 as it is pre-filled with data from Form 16, AIS, and TIS.

Step 5: Verify pre-filled data including salary, TDS, deductions, and personal details. Make corrections if needed.

Step 6: Fill in the deductions you are claiming (80C, 80D, HRA, LTA, etc.).

Step 7: Review the tax computation and ensure tax payable is zero (or pay any remaining dues via Challan 280).

Step 8: Submit the return and e-verify it using Aadhaar OTP, Net Banking, or EVC.

The filing is complete once verified. You will receive an ITR-V acknowledgement on your registered email.

Alternatively, let SetupFiling.in handle your ITR-1 filing end-to-end — error-free and before the deadline.

ITR-1: A salaried employee earning ₹8 lakhs annually from salary, ₹50,000 from FD interest, with no other income.

ITR-2: A salaried professional who also sold mutual funds during the year and realised capital gains, or an NRI with Indian income.

ITR-3: A doctor running a private clinic, a lawyer, or a consultant with professional income not opting for presumptive taxation.

ITR-4: A small shopkeeper, a freelance software developer, or a goods transporter opting for presumptive income under 44AD/44ADA/44AE with income up to ₹50 lakhs.

Follow this decision tree:

1. Are you an individual or HUF? (If not, different forms apply for companies/firms)
2. Do you have business or professional income?
   • Yes → Go to Q3
   • No → Go to Q4
3. Are you opting for presumptive taxation (44AD/44ADA/44AE)?
   • Yes → ITR-4
   • No → ITR-3
4. Is your total income ₹50 lakhs or below with only salary, one house property, and simple other income (no capital gains beyond 112A limit)?
   • Yes → ITR-1
   • No → ITR-2

When in doubt, always opt for the higher-level form — it covers more disclosures and reduces the risk of a defective return.

If you are a purely salaried employee with no business income, file ITR-1.

If you are a freelancer, consultant, or small business owner opting for presumptive taxation under Section 44ADA (professionals) or 44AD (businesses), file ITR-4.

Note: ITR-4 can also include salary income. So if you are both employed and freelancing, and your freelance income qualifies under presumptive taxation, ITR-4 covers both — provided your total income does not exceed ₹50 lakhs and you don’t have capital gains or foreign income.

ITR-2 is filed on the Income Tax e-filing portal (incometax.gov.in). Here is the process:

1. Log in with your PAN and password
2. Navigate to “File Income Tax Return” and select ITR-2 for the correct AY
3. The portal will pre-fill basic details from AIS, TIS, and Form 16
4. Fill in Schedule CG (Capital Gains) with details of all asset sales
5. Fill in Schedule HP (House Property) for each property
6. Add foreign asset details in Schedule FA if applicable
7. Enter deductions under Chapter VI-A
8. Review tax computation, pay any dues, and submit
9. E-verify the return to complete filing

ITR-2 is more complex than ITR-1. Professional assistance from SetupFiling.in’s CA team is recommended.

ITR-3 should be filed by:

• Individuals and HUFs having income from business or profession (not opting for presumptive taxation)
• Partners in a firm (income from firm’s profits)
• Professionals like doctors, lawyers, architects with regular (non-presumptive) accounts
• Those with business income along with capital gains, multiple house properties, or foreign income

ITR-3 is a comprehensive form requiring full financial statements (P&L, Balance Sheet) if applicable. It is typically prepared and filed by a CA.

ITR-4 (SUGAM) is for:

• Small business owners under Section 44AD (turnover up to ₹2 crores, or ₹3 crores if digital transactions exceed 95%)
• Professionals (doctors, CAs, lawyers, engineers, etc.) under Section 44ADA (gross receipts up to ₹75 lakhs)
• Goods transport operators under Section 44AE

Conditions for ITR-4 eligibility:

• Total income must not exceed ₹50 lakhs
• No capital gains income (beyond Section 112A limit)
• No foreign assets or income

Not a director in a company or holder of unlisted shares

File ITR-2 when you have:

• Capital gains, multiple properties, NRI income, or foreign assets
• No business or professional income

File ITR-3 when you have:

• Income from business or profession not under the presumptive scheme
• May also have salary, capital gains, or other income alongside business income

Both forms must be filed by 31st July (for non-audit cases) or 31st October (for audit cases) of the Assessment Year.

File ITR-1 if you are purely a salaried individual with no business income.

File ITR-3 if you have:

• Professional or business income not under presumptive taxation
• Income from a partnership firm
• Business income along with salary or capital gains

You cannot file ITR-1 if you have any business or professional income. Even a small amount of consultancy fees or freelance income (if not under presumptive) necessitates ITR-3.

Key due dates:

• Non-audit cases (most individuals): 31st July of the AY
• Tax audit cases (turnover above prescribed limits): 31st October of the AY
• Transfer pricing cases: 30th November of the AY

For ITR-3 and ITR-4, if you are liable for a tax audit under Section 44AB, the extended deadline of 31st October applies.

Always file before the deadline to avoid penalties and late filing fees under Section 234F.

Eligibility criteria for ITR-1 (SAHAJ):

Must have:

• Status of Resident Indian individual
• Income from salary/pension, one house property, and/or other sources (interest, dividends)
• Total income of ₹50 lakhs or below
• Agricultural income not exceeding ₹5,000

May include:

• Long-term capital gains under Section 112A up to ₹1.25 lakhs (added via recent amendments)

Must NOT have:

• Business or professional income
• More than one house property
• Capital gains (beyond the 112A limit)
• Foreign income or assets
• NRI or RNOR status
• Directorship in a company

Unlisted equity shares

Neither is “better” — the right form depends on your income profile.

ITR-1 is better for you if:

• You are a salaried employee with simple income
• You want a quick and easy filing experience
• Your income is within ₹50 lakhs with no capital gains

ITR-2 is better for you if:

• You have capital gains, multiple properties, or foreign income
• Filing ITR-1 when ITR-2 is required would make your return defective

The “best” form is the one that correctly reflects your income and complies with Income Tax rules. Filing the wrong form can lead to notices and penalties.

Filing ITR-1 when ITR-2 is required results in a defective return under Section 139(9). Consequences include:

• Receipt of a defective return notice from the Income Tax Department
• 15-day window to rectify and refile (extendable by the Assessing Officer)
• If not corrected within time, the return is deemed as never filed
• Late filing penalties under Section 234F
• Interest under Sections 234A, 234B, 234C on tax dues
• Possible tax scrutiny in future assessment

The Income Tax Department cross-references your income data from AIS, Form 26AS, and third-party sources. Mismatches are flagged automatically.

Fill ITR-1 if: You are a salaried resident Indian with total income up to ₹50 lakhs, no capital gains (beyond LTCG 112A ₹1.25L), and no business income.

Fill ITR-2 if: You are an individual or HUF with capital gains, multiple house properties, foreign income/assets, or NRI/RNOR status — but no business or professional income.

When in doubt, the safer option is to file the more detailed form (ITR-2 over ITR-1) as it captures more disclosures without penalising you.

ITR-1 (SAHAJ) must be filed by:

• Resident individual taxpayers (not NRIs, not HUFs)
• Whose total income in the financial year is ₹50 lakhs or below
• With income only from:
  • Salary or pension
  • Income from one house property
  • Income from other sources (interest, dividends, family pension)
  • LTCG under Section 112A not exceeding ₹1.25 lakhs

It is one of the most filed ITR forms in India, covering the majority of working professionals and salaried employees.

ITR-2 is filed when an individual’s income profile goes beyond the scope of ITR-1. Common reasons include:

• Capital gains: Sold shares, mutual funds, or property during the year
• Multiple properties: Own or earn rent from more than one house
• Foreign income/assets: Earned income abroad or hold foreign investments
• High income: Total income exceeds ₹50 lakhs
• NRI status: Non-resident Indians with taxable Indian income
• Company director: Directorship in any company requires ITR-2

Filing ITR-2 ensures full and accurate disclosure of all income types and avoids defective return notices.