Filing your Income Tax Return (ITR) correctly is essential to stay compliant and avoid unnecessary notices from the Income Tax Department. For salaried individuals, especially those without business income, the two most commonly used forms are ITR-1 (Sahaj) and ITR-2. Let’s break down which form is applicable to you for Financial Year (FY) 2024-25 (Assessment Year 2025-26).
Types of ITR forms for salaried persons
ITR 1
Eligibility Criteria for Filing ITR-1 (Sahaj) – FY 2024-25
You can opt for ITR-1 (Sahaj) if you meet all the following conditions:
- Your total income is up to ₹50 lakh
- You earn income from:
- Salary or Pension
- One House Property (without any loss brought forward)
- Other Sources (excluding winnings from lotteries or horse races)
- Long-Term Capital Gains under Section 112A, up to ₹1.25 lakh (with no carry-forward or set-off of capital loss)
- Agricultural income, if it does not exceed ₹5,000
❌Who Cannot File ITR-1 (Sahaj)?
You are not eligible to file ITR-1 if any of the following apply to you:
- Your total income exceeds ₹50 lakh
- You have agricultural income exceeding ₹5,000
- You earned taxable capital gains other than eligible LTCG under Section 112A
- You have income from business or profession
- You own more than one house property
- You are a Director in a company
- You have made investments in unlisted equity shares
- You hold foreign assets or earn foreign income
- Your residential status is RNOR or Non-Resident
- Tax has been deducted under Section 194N
- You have deferred tax on ESOPs
- You have any brought forward or carry forward losses under any head of income
ITR 2
Eligibility Criteria for Filing ITR-2 FY 2024-25
ITR-2 is designed for individuals and Hindu Undivided Families (HUFs) not having income from business or profession, but with more complex sources of income or higher income slabs.
➤ You should file ITR-2 if your income includes:
- Salary/Pension
- Multiple house properties
- Capital Gains from stocks, mutual funds, property, etc.
- Foreign income or assets
- Agricultural income above ₹5,000
- Other sources, including lottery or horse racing winnings
- You are a Director in a company
- You’ve invested in unlisted shares
- You are a Non-Resident or RNOR
- Clubbing of income (e.g., spouse or minor child’s income)
- Brought forward or carry-forward losses
- ESOP tax deferred
- Tax deducted u/s 194N
❌ Who cannot file ITR-2?
- Individuals having income from business or profession
Answer just three questions, and you’ll know the right ITR form
- Is your total income above ₹50 lakh?
- ✔ Yes → ITR-2
- ❌ No → Go to next question
- Do you have income from capital gains (e.g., shares, mutual funds, property)?
- ✔ Yes → ITR-2
- ❌ No → Next
- Are you earning only from salary, one house, and simple interest income?
- ✔ Yes → ITR-1
- ❌ No → ITR-2
Conclusion: Which ITR Should You File for FY 2024-25?
If you’re a salaried individual with simple income sources and total income below ₹50 lakh, then ITR-1 is ideal for you.
However, if your income is more than ₹50 lakh, includes capital gains, foreign income, or multiple house properties, you should opt for ITR-2.
Filing the right ITR form ensures faster processing, avoids notices, and makes compliance easier.
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