Confustion in ITR forms

Based on the information provided, here's a general guideline to help you determine the appropriate ITR form for the individual who receives a salary of ₹2,00,000 per year and also earns income from small contract works with TDS under section 194C.

1. Income from Salary: The individual's primary source of income is from salary, which is ₹2,00,000 per year.

2. Income from Other Sources: The individual also has income from small contract works, which falls under "Income from Other Sources."

Given this information, you would typically consider the following:

• ITR-1 (Sahaj): This form is for individuals having income from salary, one house property, other sources (like interest), and agricultural income up to ₹5,000. However, since the individual in question has income from small contract works (which is not just interest income), ITR-1 might not be suitable.

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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.