Answer

1. F

   Facts

   ITR-1 and ITR-4 are only for total income up to ₹50 lakh. Above that, salaried persons use ITR-2, and those with business income use ITR-3.

2. P

   Provisions and law

   • Rule 12, Income-tax Rules 1962 (now Rule 164, Income-tax Rules 2026)Prescribes the ITR forms and who must use which form.
3. A

   Analysis

   ITR-2 also asks for Schedule AL, a list of assets and liabilities, when total income exceeds ₹1 crore. Below that, Schedule AL is not needed. Surcharge applies above ₹50 lakh, so check the tax computation.

4. C

   Conclusion

   1. 1Confirm total income above ₹50 lakh.
   2. 2Use ITR-2 or ITR-3.
   3. 3Check whether Schedule AL applies.
   4. 4Compute surcharge correctly.

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