Tax Consultant
681 Points
Posted on 08 June 2026
ITR form selection depends on what income you have, not how much. Here is the quick guide.
ITR-1 (SAHAJ): Only salary, one house property, and other sources (interest, dividends). No capital gains, no business income. Total income up to Rs 50 lakh.
ITR-2: Salary PLUS capital gains (from shares, mutual funds, property). Two or more house properties. Foreign income or assets. No business income.
ITR-3: Any business or professional income. F&O trading (even one trade). Freelancing treated as business. Can include salary and capital gains too.
ITR-4 (SUGAM): Presumptive income under Section 44AD (small business) or 44ADA (professionals). Turnover up to Rs 2 crore (business) or Rs 50 lakh (professionals). No capital gains from securities.
If you have BOTH salary and F&O: use ITR-3 (F&O is always business income).
If you have BOTH salary and mutual fund gains: use ITR-2.
If you have salaried income only: use ITR-1 (if below Rs 50 lakh and no other complex income).
The [ITR filing guide for multiple income sources](https://taxgarden.in/blog/itr-filing-multiple-income-sources-salary-rental-fd-capital-gains-india) has a decision chart covering salary plus capital gains plus business income scenarios.