Which ITR form should you file? ITR-1 to ITR-7 explained

The right ITR form depends on who you are (individual, HUF, firm, company or trust), your residential status, how much you earn and what kind of income you have. A return filed on the wrong form can be treated as defective. This guide explains the forms notified for AY 2026-27 (income earned in FY 2025-26), including the change that now lets you use ITR-1 and ITR-4 with up to two house properties.

✓Checked against official sources · verified 30 October 2026

Which year this guide covers

CBDT notified the ITR forms for AY 2026-27 on 30 March 2026 under the Income-tax Rules, 1962. Those returns relate to FY 2025-26 and are governed by the Income-tax Act, 1961, so the section numbers below (44AD, 112A and so on) are the 1961-Act numbers. For income earned from 1 April 2026 (tax year 2026-27), the Income-tax Act, 2025 and the Income-tax Rules, 2026 apply. Return forms for tax year 2026-27, which you will file in 2027, will be notified under the new Rules. Check the e-filing portal before you file, because form names and conditions may change.

Quick chooser

Form	Who can use it	Typical user
ITR-1 (Sahaj)	Resident individual (not RNOR) with total income up to ₹50 lakh from salary or pension, up to two house properties, other sources such as interest, agricultural income up to ₹5,000, and LTCG under section 112A up to ₹1.25 lakh	Salaried person or pensioner with bank interest
ITR-2	Individual or HUF with no income from business or profession who cannot use ITR-1	Salaried person with share or mutual fund gains, NRI, director, income above ₹50 lakh
ITR-3	Individual or HUF with income from business or profession who cannot use ITR-1, ITR-2 or ITR-4	Trader or professional keeping regular books, partner in a firm, F&O trader
ITR-4 (Sugam)	Resident individual, HUF or firm (not LLP) with total income up to ₹50 lakh and business or professional income computed on a presumptive basis under 44AD, 44ADA or 44AE	Small shopkeeper, consultant or transporter using presumptive taxation
ITR-5	Firms, LLPs, AOPs, BOIs and certain other persons (not those who must file ITR-7)	Partnership firm or LLP
ITR-6	Companies other than those claiming exemption under section 11	Private limited company
ITR-7	Persons, including companies, required to file under section 139(4A), (4B), (4C) or (4D)	Charitable or religious trust, political party, notified institution

ITR-1 (Sahaj) in detail

For AY 2026-27 you can use ITR-1 if you are a resident individual (not "not ordinarily resident") and your total income is up to ₹50 lakh from:

salary or pension
up to two house properties (the limit used to be one)
other sources such as interest and family pension
long-term capital gains under section 112A (listed equity shares and equity mutual funds) up to ₹1.25 lakh
agricultural income up to ₹5,000

You cannot use ITR-1 if you are a director in a company; have invested in unlisted equity shares at any time during the year; have short-term capital gains, or 112A gains above ₹1.25 lakh; had TDS deducted under section 194N (cash withdrawals); have deferred tax on ESOPs from an eligible start-up; hold assets outside India (including signing authority over a foreign account) or have income from outside India; or need to carry forward a loss. In ITR-1, a loss from house property can be set off only up to ₹2 lakh.

ITR-4 (Sugam) in detail

ITR-4 is for resident individuals, HUFs and firms other than LLPs whose total income does not exceed ₹50 lakh and whose business or professional income is computed on a presumptive basis:

Section 44AD (business): turnover up to ₹2 crore, or up to ₹3 crore where cash receipts are no more than 5% of gross receipts
Section 44ADA (specified professions): gross receipts up to ₹50 lakh, or up to ₹75 lakh where cash receipts are no more than 5%
Section 44AE (goods carriages): owning no more than ten goods vehicles at any time during the year

The other income allowed is the same as for ITR-1: salary, up to two house properties, interest, 112A gains up to ₹1.25 lakh and agricultural income up to ₹5,000. ITR-4 is optional, so an eligible person may file ITR-3 instead. You cannot use ITR-4 if you are RNOR or non-resident, are a company director, hold unlisted shares, have short-term capital gains, have income from lottery or racehorses or income taxed under 115BBE, have more than two house properties, or have ESOP tax deferral.

ITR-2 and ITR-3

ITR-2 is for individuals and HUFs who have no business or professional income but cannot use ITR-1. Common examples: capital gains beyond the ITR-1 limit, income above ₹50 lakh, more than two house properties, foreign assets, directorship, unlisted shares, or non-resident status.

ITR-3 is for individuals and HUFs with business or professional income who cannot use the other forms. It covers regular books of account, tax-audit cases, partners receiving salary or interest from a firm, and futures & options or intraday trading, which is business income.

Due dates for AY 2026-27

ITR-1 and ITR-2 filers, and other non-business cases: 31 July 2026
Business or professional income not requiring audit (including partners of non-audit firms): 31 August 2026, under the change made by the Finance Act, 2026
Audit cases: originally 31 October 2026, extended by CBDT to 21 November 2026 (tax audit report extended to 21 October 2026)

Please note: Due dates can change through CBDT circulars. Always confirm the current date on our due dates page or the e-filing portal before relying on it.

Frequently asked questions

I have salary and two flats on rent. Can I still use ITR-1?

Yes, for AY 2026-27, provided total income is within ₹50 lakh and you meet the other conditions. The limit was raised from one house property to two. With three or more properties you need ITR-2 (or ITR-3 if you also have business income).

I sold equity mutual funds at a small long-term gain. Which form?

If the gain is long-term under section 112A and not more than ₹1.25 lakh, and you have no short-term gains, ITR-1 (or ITR-4) can be used. Otherwise use ITR-2, or ITR-3 if you have business income.

I trade in futures and options. Can I file ITR-2?

No. F&O trading is treated as business income, so ITR-3 is the usual form. Presumptive ITR-4 is generally not suitable for F&O.

Can an LLP file ITR-4?

No. ITR-4 is for firms other than LLPs. An LLP files ITR-5.

What happens if I file on the wrong form?

The department may treat the return as defective and ask you to correct it within the time given. If you do not, the return can be treated as invalid. It is usually better to file a revised return on the correct form within the time allowed.

Are the ITR forms the same for tax year 2026-27?

Not necessarily. Returns for tax year 2026-27 will be filed under the Income-tax Act, 2025 and the Income-tax Rules, 2026, and the forms for them are notified separately. We will update this page once they are available.

How TaxEase can help

We check your AIS, Form 26AS and capital-gain statements, choose the right form and file it for you. Salaried people with simple income can start with free ITR filing online. Business owners in Vapi, Valsad, Silvassa and Daman can use our ITR filing service. You can also compare packages or check your tax in the income tax calculator.

Sources

Talk to us before the deadline does.

Share your question today — get a clear answer and a fixed quote the same working day.

Send your query WhatsApp 99240 99804