Choose the right ITR form based on your income sources and tax situation
The Income Tax Department has different forms for different types of taxpayers. Selecting the right form is crucial for accurate tax filing.
For individuals with income from salary, one house property, and other sources (excluding capital gains)
For individuals and HUFs not having income from business or profession
For individuals and HUFs having income from business or profession
For individuals, HUFs and firms with presumptive business income
Compare the different ITR forms to understand which is the right one for your tax situation
| Feature / Income Source | ITR-1 (Sahaj) | ITR-2 | ITR-3 | ITR-4 (Sugam) |
|---|---|---|---|---|
| Salary Income | ||||
| One House Property | ||||
| Multiple House Properties | ||||
| Capital Gains | ||||
| Foreign Income/Assets | ||||
| Business/Professional Income | (Presumptive only) | |||
| Partnership Firm | ||||
| Agricultural Income > ₹5,000 | ||||
| Company Director | ||||
| Unlisted Equity Shares | ||||
| Income Limit | Up to ₹50 Lakhs | No Limit | No Limit | Follows Presumptive Limits |
| Complexity Level | Low | Medium | High | Medium-Low |
Common questions about ITR forms and filing process
The right ITR form depends on your income sources and tax situation. Generally, if you have only salary income and one house property, ITR-1 is sufficient. If you have capital gains or multiple properties, you need ITR-2. Business owners typically use ITR-3, while small businesses under presumptive taxation use ITR-4. When you book with CredFill, our system will automatically identify the correct form based on your information.
Presumptive taxation is a simplified method where income is calculated as a percentage of gross receipts, without maintaining detailed books of accounts. It's available for small business owners with turnover up to ₹2 crore (under Section 44AD), professionals with gross receipts up to ₹50 lakh (under Section 44ADA), and transport businesses with up to 10 vehicles (under Section 44AE). If you qualify and opt for this scheme, you would file ITR-4.
Filing with the wrong ITR form can lead to a defective return notice from the Income Tax Department. You would need to file a revised return with the correct form. This could delay processing of your return and any refund due. At CredFill, our experts ensure you use the correct form from the start, avoiding these complications.
Yes, if during the filing process it's determined that a different form is more appropriate for your situation, we can help you switch to the correct form. There might be a price adjustment if moving to a more complex form. Our primary goal is to ensure you file with the most appropriate form for your tax situation.
The documents required depend on your income sources. Generally, you'll need: Form 16 from employer, bank statements showing interest income, property documents for house property income, capital gains statements for investments, and business financial records if applicable. After booking, our team will provide you with a detailed checklist specific to your situation.
No worries! Our experts will analyze your financial situation and help you select the right form. Book your ITR filing now and let us handle the complexities.
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