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ITR-1 vs ITR-2: Which Form is Right for Salaried Employees?

Salaried but have capital gains or two houses? Learn the key differences between ITR-1 and ITR-2 so you pick the right form and avoid a defective return notice.

5 min read · 2026-06-15

The great salaried dilemma

If you earn a salary, your instinct is ITR-1 (Sahaj): fast and mostly pre-filled. But as you invest more, you may have quietly outgrown it and need ITR-2.

When ITR-1 is perfect

When you must switch to ITR-2

TriggerWhy ITR-1 fails
Sold shares / MF / propertyCapital gains need Schedule CG
Two or more housesITR-1 allows only one
Income above Rs 50 lakhITR-1 cap exceeded
Foreign assets / RSUsFA schedule required
Unlisted sharesDisclosure needed

Salaried investors are a fast-growing share of ITR-2 filers as equity participation rises across India (Source: Income Tax Department filing trends).

How to choose (portal path)

  1. Log in at incometax.gov.in and open Services > Annual Information Statement (AIS).
  2. Check for any Sale of Securities lines.
  3. If present, select ITR-2 when you start the return.

What you should do

Read your AIS before picking a form. One share-sale line means ITR-2, not ITR-1.

Common mistake

Forcing capital gains into ITR-1. The automated system flags it and sends a defective-return notice.

How LastMinute ITR helps

LastMinute ITR organises your capital gains so filling ITR-2 on the portal feels straightforward. Start at /file, import at /file/import/documents, and reconcile at /file/import/mismatch.

LastMinute ITR is a companion tool, not affiliated with the Income Tax Department. You file and e-verify your return yourself on incometax.gov.in.

Related guides

ITR-1 vs ITR-2: Which Form is Right for Salaried Employees? · LastMinute ITR