{"id":29131,"date":"2025-04-13T23:47:30","date_gmt":"2025-04-13T18:17:30","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=29131"},"modified":"2025-08-20T18:05:55","modified_gmt":"2025-08-20T12:35:55","slug":"what-are-key-differences-between-itr-1-vs-itr-2","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/what-are-key-differences-between-itr-1-vs-itr-2\/","title":{"rendered":"What are key differences between ITR-1 vs ITR-2?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e15d71b1347\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e15d71b1347\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/what-are-key-differences-between-itr-1-vs-itr-2\/#Key_differences_between_ITR-1_vs_ITR-2\" title=\"Key differences between ITR-1 vs ITR-2\">Key differences between ITR-1 vs ITR-2<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/what-are-key-differences-between-itr-1-vs-itr-2\/#What_is_ITR-1_Sahaj_and_who_can_file_it\" title=\"What is ITR-1 (Sahaj) and who can file it?\">What is ITR-1 (Sahaj) and who can file it?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/what-are-key-differences-between-itr-1-vs-itr-2\/#Who_is_not_eligible_to_file_ITR-1_SAHAJ\" title=\"Who is not eligible to file ITR-1 (SAHAJ)?\">Who is not eligible to file ITR-1 (SAHAJ)?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/what-are-key-differences-between-itr-1-vs-itr-2\/#What_is_ITR-2_and_who_should_file_it\" title=\"What is ITR-2, and who should file it?\">What is ITR-2, and who should file it?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/what-are-key-differences-between-itr-1-vs-itr-2\/#Who_Cannot_File_ITR-2\" title=\"Who Cannot File ITR-2?\">Who Cannot File ITR-2?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/what-are-key-differences-between-itr-1-vs-itr-2\/#Checklist_of_documents_required_to_file_ITR-2_for_AY_2025%E2%80%932026\" title=\"Checklist of documents required to file ITR-2 for AY 2025\u20132026:\">Checklist of documents required to file ITR-2 for AY 2025\u20132026:<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/what-are-key-differences-between-itr-1-vs-itr-2\/#For_Salary_Income\" title=\" For Salary Income\"> For Salary Income<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/what-are-key-differences-between-itr-1-vs-itr-2\/#For_Interest_Income\" title=\" For Interest Income\"> For Interest Income<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/what-are-key-differences-between-itr-1-vs-itr-2\/#For_Capital_Gains\" title=\" For Capital Gains\"> For Capital Gains<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/what-are-key-differences-between-itr-1-vs-itr-2\/#For_Income_from_House_Property\" title=\" For Income from House Property\"> For Income from House Property<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/what-are-key-differences-between-itr-1-vs-itr-2\/#For_Other_Sources_of_Income\" title=\" For Other Sources of Income\"> For Other Sources of Income<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/what-are-key-differences-between-itr-1-vs-itr-2\/#For_Foreign_AssetsIncome_If_applicable_under_Schedule_FA_TR_or_FSI\" title=\" For Foreign Assets\/Income: (If applicable under Schedule FA, TR, or FSI)\"> For Foreign Assets\/Income: (If applicable under Schedule FA, TR, or FSI)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/what-are-key-differences-between-itr-1-vs-itr-2\/#For_Losses_to_be_Carried_Forward_or_Set_Off\" title=\" For Losses to be Carried Forward or Set Off\"> For Losses to be Carried Forward or Set Off<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/carajput.com\/blog\/what-are-key-differences-between-itr-1-vs-itr-2\/#For_Deductions_under_Chapter_VI-A_like_80C_80D_80G_etc\" title=\" For Deductions under Chapter VI-A (like 80C, 80D, 80G, etc.)\"> For Deductions under Chapter VI-A (like 80C, 80D, 80G, etc.)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/carajput.com\/blog\/what-are-key-differences-between-itr-1-vs-itr-2\/#What_are_the_key_differences_between_ITR-1_vs_ITR-2\" title=\"What are the key differences between ITR-1 vs ITR-2?\">What are the key differences between ITR-1 vs ITR-2?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/carajput.com\/blog\/what-are-key-differences-between-itr-1-vs-itr-2\/#Choosing_Between_ITR-1_and_ITR-2\" title=\"Choosing Between ITR-1 and ITR-2 : \">Choosing Between ITR-1 and ITR-2 : <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/carajput.com\/blog\/what-are-key-differences-between-itr-1-vs-itr-2\/#Normal_Common_FAQs_related_to_Income_Tax_Return_form_ITR-1_and_ITR-2\" title=\"Normal Common FAQs related to Income Tax Return form\u00a0 ITR-1 and ITR-2\u00a0\">Normal Common FAQs related to Income Tax Return form\u00a0 ITR-1 and ITR-2\u00a0<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-23521\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/10\/income-tax-return-is-not-verified.jpg\" alt=\"income tax return is not verified\" width=\"911\" height=\"682\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/10\/income-tax-return-is-not-verified.jpg 640w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/10\/income-tax-return-is-not-verified-300x225.jpg 300w\" sizes=\"(max-width: 911px) 100vw, 911px\" \/><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"Key_differences_between_ITR-1_vs_ITR-2\"><\/span><span style=\"color: #000080;\"><strong>Key differences between ITR-1 vs ITR-2<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"What_is_ITR-1_Sahaj_and_who_can_file_it\"><\/span><span style=\"color: #000080;\"><strong>What is ITR-1 (Sahaj) and who can file it?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-29130\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/05\/Who-can-use-the-ITR-1-form-.jpg\" alt=\"Who can use the ITR-1 form?\" width=\"1088\" height=\"667\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/05\/Who-can-use-the-ITR-1-form-.jpg 1088w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/05\/Who-can-use-the-ITR-1-form--300x184.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/05\/Who-can-use-the-ITR-1-form--1024x628.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/05\/Who-can-use-the-ITR-1-form--768x471.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/05\/Who-can-use-the-ITR-1-form--800x490.jpg 800w\" sizes=\"(max-width: 1088px) 100vw, 1088px\" \/><\/p>\n<p><span style=\"color: #000080;\"><strong>ITR-1 (Sahaj) Applicable If:<\/strong><\/span><\/p>\n<ul>\n<li>Individual is a Resident and Ordinarily Resident (ROR).<\/li>\n<li>Total income is \u2264 INR 50 lakh.<\/li>\n<li>Income sources are limited to:\n<ul>\n<li>Salary or pension.<\/li>\n<li>One house property.<\/li>\n<li>Other sources (excluding horse racing, gambling, lottery, etc.).<\/li>\n<li>Family pension.<\/li>\n<li>Interest income (SB account, FD, RD, etc.).<\/li>\n<\/ul>\n<\/li>\n<li>in summary Income tac Return form ITR 1 is applicable if taxpayer have family pension income,\u00a0 Income is from salary, one house property, agricultural income (up to INR 5000), and other sources, which include: Interest from Deposits (Bank \/ Post Office\/Cooperative Society), Interest from Savings Accounts.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Who_is_not_eligible_to_file_ITR-1_SAHAJ\"><\/span><span style=\"color: #000080;\"><strong>Who is <i>not eligible<\/i> to file ITR-1 (SAHAJ)?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A taxpayer cannot file Income tac Return form ITR-1 if any of the following conditions apply:<\/p>\n<ol>\n<li>Residential Status:\n<ul>\n<li>Non-Resident (NRI)<\/li>\n<li>Resident but Not Ordinarily Resident (RNOR)<\/li>\n<\/ul>\n<\/li>\n<li>Income-Related Restrictions:\n<ul>\n<li>Total income exceeds \u20b950 lakhs<\/li>\n<li>Income from more than one house property<\/li>\n<li>The Income from business or profession<\/li>\n<li>Capital Gains (short-term or long-term)<\/li>\n<li>Agricultural income &gt; INR 5,000<\/li>\n<li>Income from lottery, horse racing, gambling, etc.<\/li>\n<li>Loss under &#8220;Income from Other Sources&#8221;<\/li>\n<\/ul>\n<\/li>\n<li>Asset\/Investment-Related:\n<ul>\n<li>Owns unlisted equity shares<\/li>\n<li>Has foreign assets\/income<\/li>\n<li>Is a director in a company<\/li>\n<li>Has deferred tax on ESOPs from an eligible startup<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<p>In summary, Income tax Return form ITR-1 (Sahaj) is not applicable if residential status is non-resident or resident but not ordinarily resident. Income &gt; INR 50 lakh. If the taxpayer is a director in a company. and have invested in unlisted equity shares, along with having deferred ESOP tax from an eligible start-up. Income includes:<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>More than one house property.<\/li>\n<li>Capital gains (short-term or long-term).<\/li>\n<li>Income from business or profession.<\/li>\n<li>Agricultural income &gt; INR 5,000.<\/li>\n<li>Foreign income or assets abroad.<\/li>\n<li>Lottery, horse racing, gambling, or similar income.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"What_is_ITR-2_and_who_should_file_it\"><\/span><span style=\"color: #000080;\"><strong>What is ITR-2, and who should file it?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-29132\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/Who-can-use-the-ITR-2-form.jpg\" alt=\"Who can use the ITR-2 form\" width=\"1101\" height=\"682\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/Who-can-use-the-ITR-2-form.jpg 1101w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/Who-can-use-the-ITR-2-form-300x186.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/Who-can-use-the-ITR-2-form-1024x634.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/Who-can-use-the-ITR-2-form-768x476.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/Who-can-use-the-ITR-2-form-800x496.jpg 800w\" sizes=\"(max-width: 1101px) 100vw, 1101px\" \/><\/p>\n<p>Income tax return form ITR-2: Used by individuals and Hindu Undivided Families (HUFs) not having income from business or profession. It means to say that those receiving income from sources like salary, pension, capital gains, and other sources.<\/p>\n<p><span style=\"color: #000080;\"><strong>Who Can File ITR-2? ITR-2 Is Applicable\u00a0If:<\/strong><\/span><\/p>\n<ul>\n<li>In case the taxpayer is an individual (resident or non-resident) or an HUF.<\/li>\n<li>Not eligible to file ITR-1.<\/li>\n<li>Individuals or HUFs having:<\/li>\n<li>Income sources include<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Salary\/pension. Means Income from Salary\/Pension<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>More than one house property, i.e., income from House Property (including more than one house)<\/li>\n<li>Capital gains. i.e Capital Gains\/Losses on sale of property\/investments (both STCG and LTCG)<\/li>\n<li>Income from other sources (including lottery, horse racing, gambling, etc.).<\/li>\n<li>Agricultural income &gt; INR 5,000.<\/li>\n<li>Foreign assets or income.<\/li>\n<li>Dividend income exceeding INR 5,000 (TDS applicable).<\/li>\n<li>Brought forward losses.<\/li>\n<li>Deferred ESOP tax from start-ups.<\/li>\n<li>DTAA relief claims u\/s 90\/91.<\/li>\n<li>RNOR (Resident but Not Ordinarily Resident) or Non-Resident Individuals<\/li>\n<li>Directors in companies and You&#8217;re a director or hold unlisted equity shares.<\/li>\n<li>Individuals holding unlisted equity shares<\/li>\n<li><em>There is no upper limit on total income (unlike ITR-1).<\/em><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Who_Cannot_File_ITR-2\"><\/span><span style=\"color: #000080;\"><strong>Who Cannot File ITR-2?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Income tax return form ITR-2 is not applicable if individuals or HUFs have income from business or profession. <em>\u00a0Those eligible for ITR-1 can still file ITR-2, but ITR-1 is simpler and preferred if eligibility is met. In summary <\/em>ITR-2 Not Applicable if<\/p>\n<ul>\n<li>The taxpayers have income from business or profession (\u2192 File ITR-3 instead).<\/li>\n<li>Taxpayer have a firm, LLP, company, or trust (\u2192 File ITR-5, ITR-6, etc.)<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\"><strong>Structure of ITR-2<\/strong><\/span><\/p>\n<p>Part A : General information and Schedules are mention here under<\/p>\n<ul>\n<li>Schedule S \u2013 Income from salary<\/li>\n<li>Schedule-HP \u2013 Income from house property<\/li>\n<li>Schedule CG \u2013 Capital gains<\/li>\n<li>Schedule-112A \u2013 Capital gains (STT paid)<\/li>\n<li>Schedule 115AD \u2013 For NRIs: equity shares\/funds with STT<\/li>\n<li>Schedule-VDA \u2013 Income from Virtual Digital Assets (crypto, NFTs)<\/li>\n<li>Schedule OS \u2013 Other sources<\/li>\n<li>Schedule-CYLA\/BFLA\/CFL \u2013 Loss set-off and carry forward<\/li>\n<li>Schedule VIA \u2013 Chapter VIA deductions<\/li>\n<li>Schedule-80G \/ 80GGA \/ 80GGC \/ 80DD \u2013 Donations and disability deduction<\/li>\n<li>Schedule AMT\/AMTC \u2013 Alternate Minimum Tax &amp; Credit<\/li>\n<li>Schedule-SPI \u2013 Clubbed income (minor, spouse, etc.)<\/li>\n<li>Schedule SI \u2013 Income taxed at special rates<\/li>\n<li>Schedule-EI \u2013 Exempt income<\/li>\n<li>Schedule PTI \u2013 Pass-through income<\/li>\n<li>Schedule-FSI \/ TR \/ FA \u2013 Foreign income, taxes, and assets<\/li>\n<li>Schedule 5A \u2013 Portuguese Civil Code income apportionment<\/li>\n<li>Schedule-AL \u2013 Assets and liabilities (if income &gt; \u20b950 lakh)<\/li>\n<li>Schedule\u00a0 ESOP \u2013 Tax-deferred on ESOPs from start-ups under Sec. 80-IAC<\/li>\n<\/ul>\n<p><strong>Part B-TI :<\/strong> Total income computation<\/p>\n<p><strong>Part-B-TTI <\/strong>: Tax liability on total income<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Checklist_of_documents_required_to_file_ITR-2_for_AY_2025%E2%80%932026\"><\/span><span style=\"color: #000080;\"><strong>Checklist of documents required to file ITR-2<\/strong> for <strong>AY 2025\u20132026:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li>\n<h4><span class=\"ez-toc-section\" id=\"For_Salary_Income\"><\/span><span style=\"color: #000080;\"><strong> For Salary Income<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<ul>\n<li>Form 16\u2014Issued by employer (mandatory)<\/li>\n<li>Rent Receipts\u2014If claiming HRA and not submitted to employer<\/li>\n<li>Salary slips\u2014useful for cross-verification<\/li>\n<\/ul>\n<ol start=\"2\">\n<li>\n<h4><span class=\"ez-toc-section\" id=\"For_Interest_Income\"><\/span><span style=\"color: #000080;\"><strong> For Interest Income<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<ul>\n<li>Form 16A\u2014TDS certificate for interest income (e.g., from FDs, savings)<\/li>\n<li>Bank Passbook\/FD Receipts\u2014To compute total interest income<\/li>\n<li>Form 26AS\u2014Consolidated annual tax statement (available on e-filing portal)<\/li>\n<\/ul>\n<ol start=\"3\">\n<li>\n<h4><span class=\"ez-toc-section\" id=\"For_Capital_Gains\"><\/span><span style=\"color: #000080;\"><strong> For Capital Gains<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<ul>\n<li>Capital Gains Statement\u2014From brokers or mutual fund houses<\/li>\n<li>Contract notes\/trading account statements\u2014for detailed stock trades<\/li>\n<li>Purchase &amp; Sale Deeds\u2014In case of property transactions<\/li>\n<li>Indexed Cost Documents\u2014For computing long-term capital gains<\/li>\n<\/ul>\n<ol start=\"4\">\n<li>\n<h4><span class=\"ez-toc-section\" id=\"For_Income_from_House_Property\"><\/span><span style=\"color: #000080;\"><strong> For Income from House Property<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<ul>\n<li>Rent Agreements &amp; Rent Receipts\u2014For rental income<\/li>\n<li>Municipal Tax Paid Receipts\u2014Can be claimed as deduction<\/li>\n<li>Interest Certificate on Home Loan\u2014For claiming interest deduction<\/li>\n<li>Ownership Documents\u2014For property proof<\/li>\n<\/ul>\n<ol start=\"5\">\n<li>\n<h4><span class=\"ez-toc-section\" id=\"For_Other_Sources_of_Income\"><\/span><span style=\"color: #000080;\"><strong> For Other Sources of Income<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<ul>\n<li>Details of Winnings\u2014From lottery, horse races, etc.<\/li>\n<li>Gift Deed\/Inheritance Proof\u2014if applicable<\/li>\n<li>Any income not covered above<\/li>\n<\/ul>\n<ol start=\"6\">\n<li>\n<h4><span class=\"ez-toc-section\" id=\"For_Foreign_AssetsIncome_If_applicable_under_Schedule_FA_TR_or_FSI\"><\/span><strong><span style=\"color: #000080;\"> For Foreign Assets\/Income:<\/span> <\/strong>(If applicable under Schedule FA, TR, or FSI)<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<ul>\n<li>Bank account statements\u2014of overseas accounts<\/li>\n<li>Property ownership proof abroad<\/li>\n<li>Foreign tax paid certificates<\/li>\n<li>Income received abroad<\/li>\n<\/ul>\n<ol start=\"7\">\n<li>\n<h4><span class=\"ez-toc-section\" id=\"For_Losses_to_be_Carried_Forward_or_Set_Off\"><\/span><span style=\"color: #000080;\"><strong> For Losses to be Carried Forward or Set Off<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<ul>\n<li>Proof of Loss\u2014e.g., trading losses, house property losses<\/li>\n<li>Copy of previous year\u2019s ITR-V \u2013 If claiming carried forward losses<\/li>\n<\/ul>\n<ol start=\"8\">\n<li>\n<h4><span class=\"ez-toc-section\" id=\"For_Deductions_under_Chapter_VI-A_like_80C_80D_80G_etc\"><\/span><span style=\"color: #000080;\"><strong> For Deductions under Chapter VI-A (like 80C, 80D, 80G, etc.)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Life insurance premium receipts<\/li>\n<li>PPF\/ELSS\/NSC investment proof<\/li>\n<li>Tuition fee receipts<\/li>\n<li>Mediclaim (Health insurance) receipts\u2014Section 80D<\/li>\n<li>Donation Receipts\u2014Section 80G<\/li>\n<li>Rent Receipts\u2014Section 80GG (if not getting HRA)<\/li>\n<li>Home loan principal repayment statement\u2014Section 80C<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"What_are_the_key_differences_between_ITR-1_vs_ITR-2\"><\/span><span style=\"color: #000080;\"><strong>What are the key differences between ITR-1 vs ITR-2?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-29142\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/ITR-1-and-ITR-2.png\" alt=\"ITR 1 and ITR 2\" width=\"1500\" height=\"2522\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/ITR-1-and-ITR-2.png 1500w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/ITR-1-and-ITR-2-178x300.png 178w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/ITR-1-and-ITR-2-609x1024.png 609w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/ITR-1-and-ITR-2-768x1291.png 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/ITR-1-and-ITR-2-914x1536.png 914w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/ITR-1-and-ITR-2-1218x2048.png 1218w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/ITR-1-and-ITR-2-800x1345.png 800w\" sizes=\"(max-width: 1500px) 100vw, 1500px\" \/><\/p>\n<table style=\"height: 284px;\" width=\"839\">\n<thead>\n<tr>\n<td><span style=\"color: #000080;\"><strong>Criteria<\/strong><\/span><\/td>\n<td><span style=\"color: #000080;\"><strong>ITR-1 (Sahaj)<\/strong><\/span><\/td>\n<td><span style=\"color: #000080;\"><strong>ITR-2<\/strong><\/span><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Eligible Persons<\/td>\n<td>Resident Individuals only<\/td>\n<td>Individuals (including NR) and HUFs<\/td>\n<\/tr>\n<tr>\n<td>Income Limit<\/td>\n<td>Up to INR 50 lakh<\/td>\n<td>No limit<\/td>\n<\/tr>\n<tr>\n<td>Capital Gains<\/td>\n<td>Not allowed<\/td>\n<td>Allowed<\/td>\n<\/tr>\n<tr>\n<td>House Property<\/td>\n<td>Only 1 house<\/td>\n<td>More than one house allowed<\/td>\n<\/tr>\n<tr>\n<td>Other Sources<\/td>\n<td>Excludes gambling, lottery, etc.<\/td>\n<td>Includes lottery, gambling, horse racing<\/td>\n<\/tr>\n<tr>\n<td>Agricultural Income<\/td>\n<td>Up to INR 5,000<\/td>\n<td>More than INR 5,000 allowed<\/td>\n<\/tr>\n<tr>\n<td>Foreign Assets\/Income<\/td>\n<td>Not allowed<\/td>\n<td>Mandatory to disclose<\/td>\n<\/tr>\n<tr>\n<td>Director\/Unlisted Shares<\/td>\n<td>ITR-1\u00a0 is not allowed<\/td>\n<td>ITR-2\u00a0 is mandatory<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Dividend Income Clarification: If the taxpayer has\u00a0dividend income:<\/p>\n<ul>\n<li>Is less than INR 5,000, and you meet all ITR-1 conditions \u2192 ITR-1.<\/li>\n<li>Exceeds INR 5,000, or the taxpayer has received TDS certificate under Section 194 \u2192 ITR-2.<\/li>\n<li>Is from shares held as business assets \u2192 this becomes business income, and Taxpayer must file ITR-3<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Choosing_Between_ITR-1_and_ITR-2\"><\/span><span style=\"color: #000080;\"><strong>Choosing Between ITR-1 and ITR-2 : <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>When preparing to file a Taxpayer Income Tax Return, it\u2019s critical to choose the correct form based on taxpayer income sources, residential status, and financial transactions during the year. Below is the checklist before choosing between Income Tax Return form ITR-1 and ITR-2 filing:<\/p>\n<ul>\n<li>Know your residential status (resident, RNOR, or NRI).<\/li>\n<li>Calculate your total income (salary, house property, capital gains, interest, other sources, etc.).<\/li>\n<li>Gather all income documents\u2014Form 16, interest certificates, AIS\/TIS, capital gains statements, etc.<\/li>\n<li>Check for disqualifying conditions if you\u2019re considering ITR-1.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Normal_Common_FAQs_related_to_Income_Tax_Return_form_ITR-1_and_ITR-2\"><\/span><span style=\"color: #000080;\"><strong>Normal Common FAQs related to Income Tax Return form\u00a0 ITR-1 and ITR-2\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-29177\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/photo_2025-04-19_01-04-08.jpg\" alt=\"ITR-1 and ITR-2\u00a0\" width=\"1080\" height=\"1080\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/photo_2025-04-19_01-04-08.jpg 1080w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/photo_2025-04-19_01-04-08-300x300.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/photo_2025-04-19_01-04-08-1024x1024.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/photo_2025-04-19_01-04-08-150x150.jpg 150w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/photo_2025-04-19_01-04-08-768x768.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/04\/photo_2025-04-19_01-04-08-800x800.jpg 800w\" sizes=\"(max-width: 1080px) 100vw, 1080px\" \/><\/p>\n<table>\n<thead>\n<tr>\n<td><span style=\"color: #000080;\"><strong>Question<\/strong><\/span><\/td>\n<td><span style=\"color: #000080;\"><strong>Answer<\/strong><\/span><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>I am salaried and a director in an inactive company.<\/td>\n<td>File ITR-2 (director disqualifies ITR-1).<\/td>\n<\/tr>\n<tr>\n<td>My salary + interest income &gt; INR 50 lakh.<\/td>\n<td>Taxpayer can file ITR-2 (income exceeds ITR-1 limit).<\/td>\n<\/tr>\n<tr>\n<td>I am a Non-Resident with only Indian bank interest.<\/td>\n<td>File ITR-2 (NRI cannot file ITR-1).<\/td>\n<\/tr>\n<tr>\n<td>Taxpayers have salary income + business income.<\/td>\n<td>Taxpayers can file ITR-3 (business income disqualifies ITR-1\/2).<\/td>\n<\/tr>\n<tr>\n<td>I am eligible for ITR-1, but can I file ITR-2?<\/td>\n<td>Yes, but ITR-1 is easier and preferred.<\/td>\n<\/tr>\n<tr>\n<td>What if I file ITR-2 instead of ITR-1?<\/td>\n<td>Acceptable, but ITR-2 is more detailed and takes longer.<\/td>\n<\/tr>\n<tr>\n<td>Can I switch from ITR-2 to ITR-1 later?<\/td>\n<td>Yes, if the taxpayer meets all ITR-1 eligibility conditions.<\/td>\n<\/tr>\n<tr>\n<td>Penalty for late ITR filing (after July 31, 2024)?<\/td>\n<td>INR 1,000 if income \u2264 INR 5 lakh; INR 5,000 if &gt; INR 5 lakh.<\/td>\n<\/tr>\n<tr>\n<td>Can I file ITR-2 if I have capital gains?<\/td>\n<td>Yes, the taxpayer must file ITR-2 (ITR-1 does not permit this).<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>In summary, we can say that if the taxpayer&#8217;s situation is straightforward (salary + one house + bank interest + income &lt; INR 50 lakh), go with ITR-1 for a simpler process. If the taxpayer has multiple properties, higher income, foreign assets\/income, capital gains, or holds a directorship, go for ITR-2.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key differences between ITR-1 vs ITR-2 What is ITR-1 (Sahaj) and who can file it? ITR-1 (Sahaj) Applicable If: Individual is a Resident and Ordinarily Resident (ROR). Total income is \u2264 INR 50 lakh. Income sources are limited to: Salary or pension. One house property. Other sources (excluding horse racing, gambling, lottery, etc.). Family pension. &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[150],"tags":[10306],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29131"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=29131"}],"version-history":[{"count":6,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29131\/revisions"}],"predecessor-version":[{"id":29179,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29131\/revisions\/29179"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=29131"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=29131"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=29131"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}