Directors and unlisted shareholders cannot use ITR-1

ITR

Updated 31 Oct 2026. Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.

Facts
No. A company director, or anyone who held unlisted equity shares at any time in the year, cannot use ITR-1 even if the only income is salary.
Provisions and law
- Rule 12, Income-tax Rules 1962 (now Rule 164, Income-tax Rules 2026)Sets which ITR form applies, its eligibility conditions and how it is verified.
Analysis
Use ITR-2, which asks for the company's name and PAN, your DIN and details of unlisted shares held. Even ESOP shares in a startup count as unlisted shares. The tax may be the same, but the form must be right.
Conclusion
1. Check if you were a director in any company during the year.
2. Check if you held unlisted shares, including startup ESOP shares.
3. If yes, choose ITR-2.
4. Keep DIN and share details ready.

A Savvy can do this for you

Income tax return for salaried and pensioners, ITR-1 (Sahaj)

₹999

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.

Answer