The main difference between ITR-1 and ITR-4S lies in the fact that ITR is opted by those assessees who chooses presumptive taxation, whereas this is not so in the case of ITR-1.
The Central Government of India has the right to levy Income Tax. It is a direct tax, imposed on the total income of the person, in the previous year. The term person includes all type of assessees covered under the act, i.e. Individual, Association of Persons (AOP), Hindu Undivided Family (HUF), Body of Individuals (BOI), partnership firm and body corporate. The tax is governed by the Income Tax Act, 1961.
Income Tax Return (ITR) refers to the proclamation of income by the assessee, in the recommended format. It must be filed as per the provisions of the act. Central Board of Direct Taxes (CBDT), is the body that provides the relevant format for filing of return by different types of assessees. While filing the return, many individuals suffer confusion regarding which ITR form is suitable for them. There is a slight difference between ITR-1 and ITR-4S, which lies in the heads they cover. So, let’s continue further, to compare and contrast these two types of forms.
Content: ITR-1 Vs ITR-4S
Comparison Chart
| Basis for Comparison | ITR-1 | ITR-4S |
|---|---|---|
| Meaning | ITR-1 is a return filing form applicable to the individual who derive income from salary, rent and interest. | ITR-4S is an income tax return form used by those assessees, who have chosen presumptive business income, and also derives their income from salary, rent and interest. |
| Name | Sahaj | Sugam |
| Applies to | Individual | Individual or HUF |
| How many heads of income are covered? | Three | Four |
Definition of ITR-1
Income Tax Return form 1, shortly known as ITR-1, is a return filing form filled by an assessee, when his total income in the previous year includes income from salary or pension, house property (only one and that too should not include loss brought forward from any previous years) and other sources such as interest on fixed deposits or saving bank deposit.
In addition to this, if the income of other persons like spouse or minor is clubbed with the assessee’s income, then also the return form is used, only if their income falls under the specified heads.
ITR-1 cannot be used to submit return if the income of the assessee is from:
- Two or more house property.
- Casual income, i.e. winning from lotteries, card games, horse race and so on.
- Capital Gains
- Business or Profession
- Agricultural income more than Rs. 5000.
- Loss from the head ‘other sources.’
- Relief claimed under section 90 or 91
- Any source outside India
- Signing authority in any account or any asset located outside the country
Definition of ITR-4S
Income Tax Return form 4S, also known as ITR-4S, is for those assessees who opted for presumptive taxation on their business income under section 44AD and 44AE of the Income Tax Act, 1961, provided the turnover of the taxpayer is less than equal to 1 crore. It also includes those taxpayers who earn income from salary, one house property (except when loss brought forward from any previous years) and income from other sources, i.e. interest income.
44AE is for presumptive taxation for plying, hiring and leasing of goods (up to ten vehicles) and 44AD is for other businesses. Presumptive Taxation Scheme is a method, wherein the assessee pays the tax by estimation. Under section 44AD, the profit earned by the assessee is estimated at 8% of the turnover and in section 44AE, Rs 7500 will be presumed as net income per month from each vehicle, irrespective of the heavy or light vehicle. In this scheme, any business expenses will not be allowed. Further, the assessee neither has need to maintain books of accounts nor to pay advance tax.
If clubbing provisions apply to the assessee, and the income of other persons are clubbed in the tax payer’s income, then this form is filled only if the income being clubbed falls under the heads specified above.
One cannot use this form to file return of his income if he derives income from:
- More than one house property.
- Casual income such as winning from lotteries, crossword puzzled horse race, etc.
- Capital gains
- Agriculture over Rs. 5000.
- The profession as prescribed under section 44AA(1) or agency business or commission for brokerage.
- Speculative business and other special incomes.
- Relief claimed under section 90, 90A or 91
- Any source outside India
- Signing authority in any account or any asset located outside the country
Note: ITR 4S has been discontinued in financial year 2016-17 and it has been renamed as ITR 4.
Key Differences Between ITR-1 and ITR-4S
The following points are noteworthy so far as the difference between ITR-1 and ITR-4S is concerned:
- ITR-1 is a return filing form applicable to the individual who derive income from salary, rent, and interest. ITR-4S is an income tax return form used by those assessees, who have chosen presumptive business income, and also derives their income from salary, rent, and interest.
- ITR-1 is known as ‘Sahaj’ while ITR-4S is called ‘Sugam’.
- ITR-1 applies to Individual only whereas ITR-4S covers Individual and HUF.
- ITR-1 is used only when the income is mainly from three heads i.e. salary, one house property, and other sources (except casual income). On the other hand, ITR-4S applies to four heads of income i.e. presumptive business income, salary, one house property, and other sources (except casual income).
Conclusion
Therefore, before filing income tax return, the assessee should first consider these provisions. The primary difference between ITR-1 and ITR-4S is the presumptive business scheme, which is included in ITR-4S but not in ITR-1.
JITENDER MOR says
Please tell us that I have no any source of income, I am a student of 21 year. Can I fill my itr of which type.
Surbhi S says
No, you don’t need to file any ITR.
Dr. Kartik Chandra Nandi says
Great article.
Irfan Shaikh says
Could you please advise which will the best option (ITR-1 or ITR-4) for efiling for salaried employee in IT sector, Thanks
Surbhi S says
ITR-1 would be the best option for you.
swapnil says
hI, I have fixed deposits and i get interest on it. which ITR should i file? I don’t have any income.
Surbhi S says
You should file ITR-1, if the interest income exceeds the minimum limit.
Ajay says
HI ,Please let me know the ITR form to fill for salried individual with income above 50 lac.
Surbhi S says
You need to file ITR 4
saptak says
I have agriculture income more than 1 lac. Which one should i file ?
On my dashboard I can only see itr 1 and itr 4s.
Surbhi S says
If your agricultural income is more than Rs. 5000 then you need to file ITR 2
SHIV says
I earn from freelance web designing. My income is from Other countries as well as India. Which should I fill, ITR 1 or ITR 4??
Surbhi S says
As you earn income from India and other countries, then you should file ITR 2
JITENDRA KUMAR says
Mam, I am central govt employee and earn 270000 from salary & about 100000 from tuition fee
which ITR FORM BEST FOR ME ITR-1 OR ITR-4
Surbhi S says
ITR 1 is the best option for you.
NEERAJ says
I HAVE SALARY INCOME, PROFESSIONAL INCOME AND OTHER INCOME (SB INTT). I HAD FILLED ITR-1, CAN I REVISED MY ITR-1 TO ITR – 4.
Surbhi S says
Yes, Income tax law allows you to revise your return prior to the expiry of one year from the end of the relevant assessment year, or prior to the completion of assessment, whichever is earlier.
Ning says
i am contract employee of a company with monthly pay. i have also income from one rented house, fixed deposit, sb interest. Which form should i use itr-1 or itr-4
Surbhi S says
You should file ITR 1
ROMIT VERMA says
My income includes Capital Gains from shares sales. I tried to defile on Income tax website. There are only 3 options available there Form ITR1, ITR 4 and ITR4s. The law says none of these 3 forms can be used by assesses having income from capital Gains. What to do? Time left is 4 days.
Surbhi S says
When there is income from capital gain, ITR 2 has to be filed.
LK says
I am a consultant Doctor working in a corporate Hospital having a professional income and also twice an year I work for a couple of weeks abroad and hence having some earnings from outside India. Which is the most suitable ITR form ?
Surbhi S says
In your case, ITR 3 is the best option.
Devendra Singh says
I have income from other soures over then 300000
Which should i fill the return itr-1 0r itr-4
Surbhi S says
You can file ITR 1
TK says
What if i filed my itr in ITR-1 instead of ITR-4 by mistakely? Should i leave it as is or do i revise it and file again under ITR-4
Surbhi S says
You can revise your return.
k subrahmanyam says
Am private employee i recive salry also i have second income as brokerage commission after deductin tds. gross total income would be around 15lacks from both sources. which is the best ITR to file income tax online
Surbhi S says
You should file ITR-1
ANANTA MONDAL says
PREVIOUS YEAR I HAD A BUSINESS INCOME , AND I SUBMITTED RETURN IN ITR 4 S
NOW IN THE FY 2016-17, I CLOSED MY BUSINNESS AND NO BUSINESS INCOME . ONLY ONE HOUSE RENT INCOME . CAN I FILE ITR 1 / ITR 4 .
PLEASE SUGGEST .
Surbhi S says
You should file ITR-1
Suresh Kumar says
Can u advise the sections of deductions & savings covered for ITR 1 (income from salary) individual. E.g. 80c,80ccd
shweta says
hi ,
Is there any possibility to change the e filling from itr3 to itr1 after getting defect mail.(i am salaried IT employee).
Please help.
Surbhi S says
Yes, Shweta you can revise your return prior to the expiry of one year from the end of the relevant assessment year, or prior to the completion of the assessment, whichever is earlier.
Bob says
Hello TDS has been deducted on interest earned form 16A has been furnished. How do I file ITR and which form should I use. What all needs to be uploaded.
esha says
I have income 2.5 lacs approx. from home Tutions and 50.00 thousand from Interest on saving, i should file ITR 1 or ITR 4. please suggest.
Ravi kumar goyal says
i m a doctor i work in private hospital.they give fix professional salary.no salery break up.and they deduct tax every month 10℅ of total income.In 26As credit report shows tax deducted tds2 category income from other than salery.which ITR is better for me.I heared about new section(44ADE) which come in force after 1 april 2017.under this section I can fill ITR-4.P lz tell me this is right or wrong for me
MUDASSAR HASSAN says
WHEN WILL THE ITR-4 FILING STATUS COME INTO GENERAL CONSIDERATION.
Suraj says
i am a private homeopathic physician and doing private practice on my clinic. Consultation charges is the main source of my income. Whichone itr form is suitable for me 1 or 4.
Amit says
My NRO income is less than Rs. 20,000. My NRE income is less than Rs.500,000. Do I need to file an income tax return?
My income is above Rs 250,ooo but taxable income is below Rs. 250,000.
Thank you
Amol bhqgat says
I had filed itr 1 for last 2 AY BY Showing income IOS but income was from small business.there is no shop act license or any other proof regarding business.. that’s why am filing return under IOS is it right???
Gyanesh bansal says
Hello mam, i am housewife and i have no source of income and i recent sold a property which is near about 9 lakh. So am i liable to pay any tax or not.
Irfan says
I switch my job from employee to professional lawyer. I have salary from employment as well as professional income this year. Which is the best form for me ITR-1 or ITR4S
Ali says
Respected CA
I am an Indian and working in a embassy (Foreign Mission) in Delhi. and salary is less than 10 lac. Which is the best form for me ITR-1 or ITR4
Ali says
I have to inform you that Embassy does not give any Form 16
Mastan says
can you please advice me which ITR form i should fill, as i have following income sources.
salary,
capital gains (shares),
getting money for online work.
my total income is less than 10 lakhs.
Ayush Gupta says
Hi
I was a self employed professional (Doctor) till September but In October I joined a permanent post of Central Government (Salaried). Can you please advice me which ITR form to fill or can I fill my ITR using ITR 4 (presumptive taxation scheme). Will all the earned amount clubbed under this Section 44 AD?
VARATHAN says
Hi
I am PSU employee, My income based on salary only, I am filed and E-verified ITR-4 instead of ITR-1. Any problem will come
Madhava Rao says
I have income of Rs 45000 under sec 194J and I do not wish to show any presumptive income/expenses. I wish to pay tax for entire Rs.45000. In that case can I add this income as Casual income in ITR-1 ?
B Subrahmanyam says
I am a salaried employee and having two houses – one under self-occupation and the other was let out. Which ITR form should be applicable for filing my tax return?
Surbhi S says
You can file ITR – 1 if your income is less than Rs. 50,00,000.
D ND SURESH says
WHAT IF THE INCOME IS MORE THAN 50,00,000 WITH TWO HOUSES ONE IS SELF OCCUPIED AND OTHER LET OUT??
Surbhi S says
Then you need to file ITR-2
irfan says
I earned Income from Salary, Part time Direct selling of cosmetic products of Avon received 30% profit from sale and Income from Partnership firm as a partner i.e. Interest on capital and profit sharing income.
which ITR should i fill
Surbhi S says
You should file ITR-2
Rishma says
I earned income from salary and commision from lic and income from brokerage pls suggest itr form No.
Surbhi S says
You can file ITR-1
shashank says
Hi, I am a Company Secretary and working as a freelancer. The companies for which I work for are deducting TDS over my income.
Shall I fill ITR-1 or ITR-4 ?
Singh Ranota says
SIR,
Which ITR for current year form is suitable for PART TIME worker .NO FORM 16 FROM EMPLOYERS.Income up to FIVE LAKHS (Gross)
Gajender Vashisth says
My HUF received 40000 rs as a gift every year. Which ITR I have to file?
Vishwanath says
I am a senior citizen with income from only from Bank & Post Office FDs. Pl let me know which ITR I should File.
Amar says
Hi, I’m a freelancer and earn income from outside india. Which form should I use?
And, I take my brother’s help in completing my work frequently and pay him a nominal amount of Rs 5000/pm in cash. Can I show this under deductions? (‘cos I’m paying him to do my work). Kindly clarify.
Thanks
Swati Singhal says
Hi,
I am an NRI for AY 2018-2019 and have received income in interest from savings, FD, and rental income from house. Additionally, I have some income received from my car, which I leased to a private company. I am filing ITR2, is that the correct form? If yes, where exactly should I report the car lease income? If ITR2 is not the correct form, which one should I choose?
Many thanks,
Swati
Ankita says
Hi, Thank you for providing us these articles and a space to help us with our queries.
I have a residential house property and a commercial property ( small shop) and get rental income from both , so what is that treated /considered as: one or two house property ? for the purposes of choosing the ITR
If commercial rental property isn’t counted towards deciding the form , so can I based on that have one ( residential ) rental income + interest income only , file using ITR1 ?
Thank you
Ankita
sunshine, says
hello i was an employee and used to file itr-1 but left job in september and earned around 15,000 inr for small freelancing work and nothing else. i want to declare this on itr. should i use itr 1 r itr 4 or itr 4s
Sunit Kumar says
I have income from salary, fd intrest, mutual fund dividend and house rent. Which itr should i fill
Surbhi S says
You should file ITR-1
Shobhit Gupta says
I have agriculture income more than 100000. In previous years i have filled ITR 4 and since last 3 year i filled ITR 1. Now there is no option available for ITR 2 in portal. What should i do?
Sitaram vashist says
I am a pensioner and consultant too ,earlier I filed itr 1 as I have rec’d only pension but this year I have received pension and consultancy ,
So let me know should I file itr4 ?
A chakraborty says
Hi I am earning income from private tuition. Please tell me which ITR form should I use. Thanks.
Surbhi S says
You should file ITR 3
I Ravi Raju says
Hi I am earning income from Private sector less then 50 lakhs and no other income , by mistake i submitted ITR-4 , now unable to submit ITR -1 via the incometax e filling web site .
Is it any problem if i used ITR-4 instant of ITR-1 from
Dolat says
For a salaried employee with some profit in shares and in mutual funds which ITR should be filled?
RAHUL says
Which ITR Should I fill if I was a professional for Half of the Year and I earned income as my professional fees and I joined a job for half of the last financial year
Shiva says
I had income from freelancing for 3 months and then joined permanent job after that. Which form do I need to choose for AY2021-22
Thanks,
Shiva Kumar
ANAND SHARMA says
Dear Sir/Mam,
when was I get 156000 yearly income by my salary in private section and some interest on my FD’s in bank. I fill my ITR in 2016-2017 session by someone known. He fill it in ITR4S but from last 2018-2019-2020 i’m not fill my ITR because i haven’t any income, no job. But today i study about ITR rules then i got that my ITR was filled in wrong form. Is there any chance to change it in right ITR form and which form is preferred for me now or i need to fill ITR again even no income from last 3 years.?
Harish says
Hi I work abroad and earning salary And paying tax on it. Which return I must use? Itr1 or itr4?
J M Siyad says
Sir,
My Income from Pension, Interest from Bank and Fee received for translation work. After Standard deduction and under Chapter VIA it is less than Rs 5 lakhs and eligible for refund from TDS and TCS.
I filed IT return in ITR 1, whether it needs to be revised to ITR 4 ?
Azeez says
Hi, if TDS got deducted through section 194JB….while e filing which ITR form we should take 1 or 2 or 4…..just for clarification purpose…
Assessor Powered by Tripathi Associates says
Nice information & articles are very knowledgeable & shareable thanks & keep it up…
Tripathi Associates says
Good informative site …
Sanjeev Kumar says
Hi Which ITR to be used (ITR 1 or ITR4) for income comprising (i) Salary 26,00,000 (TDS under 192) (ii) Consultancy fees 50,000 (TDS under 194JB), (iii) FD interest 15000
Mohan says
I HAVE THE FOLLOWING ROLES IN LAST YEAR.
3 MONTHS AS SALARIED EMPLOYEE IN PRIVATE COLLEGE + 5 MONTHS NO JOB + 4 MONTHS AS BUSINESS PROPRIETOR
PLEASE SUGGEST, WHICH ITR FORM TO FILE?