ITR Forms Sahaj: As income tax return (ITR) filing season begins, taxpayers across India are getting ready to submit their returns. The Income Tax Department has already released the latest ITR forms, including ITR-1, ITR-2, ITR-3, ITR-4, and others.
ITR Forms Sahaj: Among these, ITR-1 (Sahaj) and ITR-4 (Sugam) are the most commonly used by salaried individuals and small business owners. If you’re unsure about which form applies to you, or if you’re filing for the first time, this guide will help you understand the basics before you get started.
What the Income Tax Department Says
Through its awareness campaign “Let’s Learn Tax”, the Income Tax Department is educating citizens on key questions related to ITR filing — who should file, why to file, when to file, and how to file.
Let’s break down the two most popular ITR forms and see who should use them.
ITR-1: Sahaj Form Explained
Who can file ITR-1 (Sahaj):
This form is for resident individuals whose total income for the financial year does not exceed ₹50 lakh. It applies if your income comes from any of the following sources:
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Salary or pension
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One house property
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Family pension income
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Agricultural income up to ₹5,000
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Other income sources like:
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Interest from savings account
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Interest from bank/post office/cooperative deposits
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Interest from income tax refund
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Enhanced compensation
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Family pension
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Other interest income
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You can also use this form if your spouse’s or minor child’s income is clubbed with yours, provided their income falls within these limits.
Who cannot file ITR-1 (Sahaj):
You are not eligible to file ITR-1 if you:
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Are a Non-Resident Indian (NRI) or Resident but Not Ordinarily Resident (RNOR)
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Earn more than ₹50 lakh annually
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Have agricultural income over ₹5,000
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Have income from capital gains (short-term or long-term)
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Earn income from lotteries, betting, or horse racing
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Own more than one house property
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Are a director in a company
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Have invested in unlisted equity shares
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Have deferred tax on ESOPs from a start-up
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Have claimed deduction under Section 194N
ITR-4: Sugam Form Explained
Who can file ITR-4 (Sugam):
ITR-4 is suitable for resident individuals, Hindu Undivided Families (HUFs), and firms (other than LLPs) whose total income is up to ₹50 lakh and who earn income from:
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Business or profession under the presumptive income scheme (Section 44AD, 44ADA, or 44AE)
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Salary or pension
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One house property
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Agricultural income up to ₹5,000
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Other sources like:
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Savings account interest
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Fixed deposit interest
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Family pension
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Income tax refund interest
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Enhanced compensation interest
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Interest on unsecured loans
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Who cannot file ITR-4 (Sugam):
You cannot file ITR-4 if you:
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Are an NRI or RNOR
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Earn more than ₹50 lakh
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Have agricultural income above ₹5,000
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Own more than one house property
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Are a director in a company
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Have income from capital gains or foreign assets
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Hold shares in unlisted companies
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Have income from speculative businesses, commission, or brokerage
Final Thoughts
Choosing the correct ITR form is critical for accurate tax filing and avoiding legal issues later. If your income sources are simple and fall within the prescribed limits, ITR-1 or ITR-4 can make the process quick and hassle-free.
