Which ITR Form to File: Guide for Salaried and Self-Employed Indians

ITR-1, ITR-2, or ITR-3? Here is how to pick the right form, common mistakes to avoid, and the best free tools for filing.

1.Choosing the right ITR form

**ITR-1 (Sahaj)**: Salaried individuals with income up to ₹50 lakh from salary, one house property, and other sources (interest, etc.). No capital gains, no foreign income. **ITR-2**: Salaried with capital gains (sold stocks, mutual funds) or income above ₹50 lakh. **ITR-3**: If you have business/professional income (freelancers, consultants). **ITR-4 (Sugam)**: Presumptive taxation for small businesses. Most salaried Indians need ITR-1 or ITR-2.

2.Common filing mistakes

Not reporting all bank accounts (even zero-balance ones). Missing capital gains from mutual fund SWPs or ELSS redemptions. Not claiming TDS credit from Form 26AS. Mismatch between AIS (Annual Information Statement) and reported income — the IT department matches this automatically. Not reporting interest on savings accounts (taxable above ₹10,000/year under old regime). Always download AIS from the income tax portal and reconcile before filing.

3.Free filing tools and deadlines

The income tax portal (incometax.gov.in) offers free e-filing for all forms. ClearTax and myITreturn offer free ITR-1 filing. Deadline: **July 31** for salaried (non-audit). Late filing penalty: ₹1,000 (income under ₹5 lakh) or ₹5,000. You lose the ability to carry forward losses if you file late. Pro tip: file early (May-June) to get faster refunds — the IT department processes early filings first.

4.Key takeaway

Most salaried Indians need ITR-1 (if no capital gains, income under ₹50L) or ITR-2 (with capital gains). Download your AIS before filing and reconcile all income sources. File by July 31 to avoid penalties. Use our income tax calculator to verify your tax computation before filing.