Various ITR options for Individuals for the current year (AY 2024-2025)

ITR-1 (Sahaj)

Appropriate For:

  1. Individuals earning up to Rs 50 lakh.
  2. Individuals receiving income from employment or pension.
  3. Individuals earning income from a single property.
  4. Individuals with income from other sources (excluding winnings from lotteries and income from racehorses).
  5. Individuals with agricultural income not exceeding Rs 5,000.

Limitations:

  1. Inapplicable to individuals earning over Rs 50 lakh.
  2. Unsuitable for those with income from more than one property, capital gains, or business activities.
  3. Not designed for company directors or individuals with income from unlisted equity shares.
  4. Not suitable for Residents Not Ordinarily Resident (RNOR) or Non-Residents.

Advantages of Choosing ITR-1:

If your income sources are straightforward, such as salary, a single property, minor agricultural income, and total income below Rs 50 lakh, ITR-1 offers a simple and user-friendly filing option.

ITR-2

Appropriate For:

  1. Individuals earning up to Rs 50 lakh.
  2. Income from employment or pension, and more than one property.
  3. Income from capital gains.
  4. Income from various sources including winnings from lotteries, racehorses, and gambling.
  5. Agricultural income exceeding Rs 5,000.
  6. Company directors and individuals with income from unlisted equity shares.
  7. RNOR and Non-Residents.

Limitations:

  • Not suitable for individuals with income from business or professional activities.

Advantages of Choosing ITR-2:

ITR-2 is suitable if you have multiple sources of income such as capital gains, multiple properties, agricultural income exceeding Rs 5,000, or if you are an RNOR or Non-Resident.


ITR-3

Appropriate For:

  1. Individuals earning up to Rs 50 lakh.
  2. Income from employment or pension, multiple properties, and capital gains.
  3. Income from various sources including winnings from lotteries, racehorses, and gambling.
  4. Agricultural income exceeding Rs 5,000.
  5. RNOR and Non-Residents.
  6. Income from business or professional activities.
  7. Company directors and individuals with income from unlisted equity shares.

Limitations:

  • Not suitable for those opting for presumptive income under Sections 44AD, 44AE, or 44ADA.

Advantages of Choosing ITR-3:

ITR-3 is ideal for individuals with income from business or professional activities alongside other complex income sources, including directorships and income from unlisted equity shares.


ITR-4 (Sugam)

Appropriate For:

  1. Individuals earning up to Rs 50 lakh.
  2. Income from employment or pension, a single property, and other sources.
  3. Income from business or professional activities under the presumptive income scheme (Sections 44AD, 44AE, 44ADA).
  4. Agricultural income up to Rs 5,000.

Limitations:

  1. Not suitable for individuals with income from more than one property, capital gains, or agricultural income exceeding Rs 5,000.
  2. Not for company directors, RNOR, or Non-Residents.
  3. Not for individuals with income from unlisted equity shares or winnings from lotteries, racehorses, or gambling.

Advantages of Choosing ITR-4:

ITR-4 simplifies the filing process for individuals with straightforward income sources and those opting for presumptive taxation under specific sections.

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Summary

ITR-1: Suitable for straightforward incomes up to Rs 50 lakh, including salary, one property, and minor agricultural income.

ITR-2: Suitable for complex situations involving capital gains, multiple properties, higher agricultural income, RNOR/Non-Residents, and company directors.

ITR-3: Ideal for individuals with income from business/professional activities alongside other complex income sources.

ITR-4: Perfect for those with simpler income structures opting for presumptive taxation under specific sections.

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