Which ITR Form Should You File for AY 2026-27? (ITR-1 to ITR-4)

ITR-1 (Sahaj) — the salaried default

For a resident individual with total income up to ₹50 lakh from salary/pension, one house property, and other sources (like interest), plus agricultural income up to ₹5,000. It cannot be used if you have business income, foreign income/assets, or are a company director, and capital-gains eligibility is limited — check the AY 2026-27 rules.

ITR-2 — capital gains and more

For individuals and HUFs with income that exceeds ITR-1 limits — capital gains (shares, mutual funds, property), more than one house property, foreign income or assets, or being a company director — but who do NOT have income from a business or profession.

ITR-3 — business or professional income

For individuals and HUFs carrying on a business or profession (and maintaining regular books), including partners in a firm. If you trade in F&O or run a proprietorship, this is usually your form.

ITR-4 (Sugam) — presumptive scheme

For residents (individual/HUF/firm other than LLP) with total income up to ₹50 lakh opting for presumptive taxation under Sections 44AD (business), 44ADA (professionals) or 44AE (goods carriage). Simpler — you declare income at a prescribed rate without full books.

Frequently asked questions

What happens if I file the wrong ITR form?

The return can be treated as defective under Section 139(9); you get a notice and a window to refile with the correct form. It is better to pick the right one upfront.

Can a salaried person with mutual-fund gains use ITR-1?

Often no — capital gains usually require ITR-2 (some years allow limited LTCG in ITR-1; verify for AY 2026-27). When in doubt, use ITR-2.

Is this tax advice?

No. Eligibility limits change with each Finance Act and notification. Confirm your form with a CA or on the e-filing portal before filing.

Related guides

• ITR-1 vs ITR-2: Which Income Tax Return Form Should You File? (AY 2026-27)
• Old vs New Tax Regime (AY 2026-27): Which One Saves You More?
• TDS Explained Simply: On Rent, Salary & Professional Fees (India 2026)
• TDS vs TCS — What's the Difference? (India, Explained Simply)

Free tools for this

Income-tax regime calculator  ·  Form 16 → ITR computation

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