This paper attempts to examine the determinants of various components of capital structure, which is a broad and complicated concept of corporate finance, in light of Pecking Order Theory. The capital structure of Indian IT sector(Computer- Software) is subjected to the various factors – profitability, dividend policy, firm size, tax rate, growth and asset tangibility via the method of multiple regressions. The top 10 companies were selected covering over 97% of the market and were analyzed over a dataset of 10 years from 2005 to 2014. The results show that the significant determinants of debt decisions are profitability, growth dividend pay-out ratios and asset tangibility. Except dividend pay-out ratios, the rest of the factors are in accordance to the Pecking Order theory. Profitability and dividend pay-out ratios have negative impact on the capital structure while growth and asset tangibility have a positive impact. Pecking Order Theory was considerably successful in explaining the composition of capital structure for the IT sector of the Indian Trade. Firms prefer to use their internal funds over external financing of debt and equity. A comparison was drawn between small and large firms as the findings are a key factor for both the investors and the management.