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Which ITR Form Should You File? (ITR-1, 2, 3, 4 for AY 2026-27)
Choosing the right ITR form depends on residential status, total income, income source, capital gains, house properties and whether you have business income.
ITR form comparison
| Form | Who can use it | Who cannot use it |
|---|---|---|
| ITR-1 (Sahaj) | Resident individual, total income ≤ ₹50L, salary or pension, one house property and other sources; AY 2026-27 onward includes small LTCG u/s 112A up to ₹1.25L exempt. | Not for most capital gains, more than one house property, foreign income/assets, income > ₹50L, directors, unlisted shares or business income. |
| ITR-2 | Individuals/HUF with capital gains, more than one house property, foreign income/assets, income > ₹50L, directors or unlisted shares, with no business income. | Not for business or profession income. |
| ITR-3 | Individuals/HUF with business or profession income using regular books. | Not the simplified form for presumptive-only eligible cases. |
| ITR-4 (Sugam) | Resident individual/HUF/firm other than LLP with presumptive income u/s 44AD, 44ADA or 44AE and total income ≤ ₹50L. | Not for LLPs, total income above ₹50L or cases outside presumptive eligibility. |
Quick guidance
If you are a salaried resident with income within ₹50L, one house property and no complex items, ITR-1 may be enough. If you sold shares, mutual funds, property or have foreign assets, start with ITR-2. If you run a business or profession, choose between ITR-3 and ITR-4 based on whether presumptive taxation applies.
Capital gains and ITR selection
Capital gains often move a taxpayer from ITR-1 to ITR-2. Read the capital gains guide before selecting the form. Also compare the new and old tax regimes before final submission.
Use the calculator's ITR helper
The IndCalculators calculator includes a “Which ITR applies to me?” helper that asks about salary, capital gains, business income and foreign assets.
Documents you'll need for each form
Picking the right form is easier once you know what income you actually have, and the paperwork points to it:
- ITR-1 / ITR-2 (salaried): Form 16 from your employer, Form 26AS and AIS/TIS, bank interest certificates, and deduction proofs.
- Capital gains (ITR-2): broker/mutual-fund capital-gains statements, and sale/purchase deeds for property.
- Business or profession (ITR-3 / ITR-4): books of account or a summary of turnover and expenses, plus GST data if registered.
- Foreign income/assets (ITR-2/3): details of overseas holdings, RSUs/ESOPs and any foreign tax paid.
What happens if you file the wrong ITR form?
Filing on an incorrect form can render your return defective under Section 139(9). The department issues a notice giving you time to correct and re-file; if you don't respond, the return may be treated as invalid — as if you never filed — which can attract late-filing fees, interest and loss of carry-forward benefits. That is why it pays to confirm the form before submitting. If you realise the mistake yourself, you can file a revised return under Section 139(5) before the deadline.
ITR-1 (Sahaj): the fine print
ITR-1 is the simplest form, but it has firm limits. You can use it only if you are a resident (not ordinarily resident is excluded), total income is up to ₹50 lakh, and income comes from salary/pension, one house property, and other sources like interest. From AY 2026-27 it also allows small long-term capital gains under Section 112A up to the ₹1.25 lakh exemption. You cannot use ITR-1 if you have more than one house property, business income, foreign assets or income, are a company director, hold unlisted shares, or have income above ₹50 lakh — in those cases move up to ITR-2 or ITR-3.
ITR-3 vs ITR-4 for business income
If you run a business or profession, the choice comes down to how you declare profits. ITR-4 (Sugam) is for those opting into the presumptive scheme (Sections 44AD/44ADA/44AE) with total income up to ₹50 lakh — you declare a fixed percentage of turnover as profit and skip detailed books. ITR-3 is for anyone with business/profession income who maintains regular books, has turnover above the presumptive limits, or is otherwise ineligible for presumptive taxation. LLPs, firms, companies and trusts use ITR-5, ITR-6 or ITR-7 instead.
Find your ITR form
Answer a few questions in the calculator to identify the likely ITR form.
Open Calculator →FAQ
Can I use ITR-1 if I have capital gains?
ITR-1 can include small LTCG under Section 112A up to ₹1.25L exempt from AY 2026-27 onward, but broader capital gains generally require ITR-2.
Which ITR form is used for business or profession income?
Use ITR-3 for business or profession income with regular books. Use ITR-4 only when eligible for presumptive income under 44AD, 44ADA or 44AE and total income is up to ₹50L.
Who should file ITR-2?
Individuals and HUFs with capital gains, more than one house property, foreign income or assets, income above ₹50L, directorship, or unlisted shares can use ITR-2 if they have no business income.
Are ITR-5, ITR-6 and ITR-7 for individuals?
No. ITR-5, ITR-6 and ITR-7 are mainly for firms, LLPs, companies and trusts, not ordinary individual salary returns.