ITR-1 vs ITR-2: Which Income Tax Return Form Should You File? (AY 2026-27)

1File ITR-1 (Sahaj) if…

• You are a resident individual with total income up to ₹50 lakh.
• Your income is from salary/pension, one house property, and other sources (interest etc.).
• Agricultural income is up to ₹5,000.

2File ITR-2 if…

• You have capital gains (shares, mutual funds, property).
• You own more than one house property.
• Total income exceeds ₹50 lakh.
• You are a Non-Resident (NRI), or have foreign income or foreign assets.
• You are a director in a company or hold unlisted equity shares.

3Quick tip

If you sold any shares or mutual funds during the year — even for a small gain — you generally cannot use ITR-1 and must file ITR-2. Always reconcile your AIS/TIS and Form 26AS before filing to avoid mismatches and notices under Section 143(1).