Given that ITR 1 is not applicable for NORs and NRs anymore, ITR 2 will become the first suitable option for filing their return of income.
Details of applicability/non-applicability of ITR 1 and ITR 2 are mentioned in the below table.
| Forms | Applicable to | Not applicable to |
| ITR-1 Sahaj |
* Individuals qualifying as Residents and Ordinary Residents (RORs) |
* An individual whose total income exceeds Rs 50 lakh * Total income consisting of any of the following: a)Income from more than one house property and where there is brought-forward or carry-forward loss from previous year b)Winnings from lottery or income from race horses c)Capital Gains d)Dividend income exceeding Rs 10 lakh received from domestic companies e)Unexplained cash credits, investments, etc f)Apportionment of income under the Portuguese Civil Code g)Agricultural income in excess of Rs 5,000 h)Income from Business or Profession i)Loss under the head ‘Income from other sources’ j)Claim for relief of foreign tax paid k)Foreign asset reporting l)Foreign sourced income |
| ITR 2 |
Individual or HUF |
Individual whose total income includes Income from Business or Profession |
ITR 3 & 4 – Applicability
The ITR 3 form has been specifically prescribed for individuals and HUFs having income from business or profession. This form cannot be used by any taxpayer other than individuals or HUFs (like companies, partnership firms, etc.) having income from business or profession.
ITR 4 has been prescribed for individuals, HUFs and partnership firms having “Income from business or profession” on presumptive basis. Additional reporting requirement for quoting GSTR (Goods and Services Tax return) Number, and turnover/gross receipts as per GST return filed has been included in the new form. Further, financial particulars of the business, where a tax payer has to declare details like partners/ members’ capital, secured loans, unsecured loans, advances, fixed assets, etc. have also been incorporated.
| Forms | Applicable to | Not applicable to |
| ITR 3 | Individual or HUF having income from business or profession | Individual or HUF NOT having income from business or profession |
| ITR 4 Sugam | Individual/ HUF/ Partnership Firm who has:- * Presumptive business income * Salary/ Pension * Income from One House Property (excluding cases where there is brought forward or carry forward loss from previous year) * Income from Other Sources (excluding winning from lottery and maintaining race horses). |
Individual/ HUF/ Partnership Firm who has any of the following:- * Income from more than one house property or where there is brought forward or carry forward loss from previous year * Winnings from lottery or income from race horses * Capital gains * Dividend income exceeding Rs 10 lakh received from domestic companies * Unexplained cash credits, investments, etc * Agricultural income in excess of Rs 5,000 * Speculative Business income * Agency business income or commission or brokerage * Claim for relief of foreign tax paid * Foreign asset reporting * Foreign sourced income |