Which ITR Form Should You File? ITR-1 to ITR-4 (AY 2026-27)
Pick the wrong form and the portal rejects your return or marks it defective. Here's how to choose the correct ITR for FY 2025-26 (AY 2026-27) based on exactly what income you have.
The quick answer
| Form | Who it's for |
|---|---|
| ITR-1 (Sahaj) | Resident with income up to ₹50L from salary/pension, one house, and other sources. Now also allows LTCG up to ₹1.25L (conditions below). |
| ITR-2 | Have STCG, LTCG over ₹1.25L, capital losses, more than one house, foreign income/assets, or income above ₹50L. No business income. |
| ITR-3 | Income from business or profession (incl. F&O as business income, or non-presumptive freelancers). |
| ITR-4 (Sugam) | Presumptive income under 44AD / 44ADA / 44AE, total income up to ₹50L. |
ITR-1 (Sahaj) — the simplest
Use it if you're a resident individual with total income up to ₹50 lakh from:
- Salary or pension,
- One house property,
- Other sources (interest, family pension), and
- New for AY 2025-26 onward: LTCG under Section 112A up to ₹1.25 lakh from listed shares/equity MFs — only if you have no capital losses to set off or carry forward, and no STCG.
When ITR-1 is NOT allowed
You cannot use ITR-1 if you have any of these:
- STCG, or LTCG above ₹1.25 lakh, or any capital loss.
- More than one house property.
- Foreign income or foreign assets.
- You're a company director or hold unlisted shares.
- Business or professional income.
- Total income above ₹50 lakh.
In those cases, move up to ITR-2 (or ITR-3 if there's business income).
ITR-2 — salaried + investor
This is the most common mix-up. The moment you have STCG, LTCG above the ₹1.25 lakh threshold, capital losses, more than one house, or foreign assets (e.g. US RSUs), you file ITR-2. See how capital gains are taxed and how to report RSU/ESOP.
ITR-3 & ITR-4 — business, profession, freelancers
ITR-4 (Sugam): if you opt for presumptive taxation — declaring 50% of professional receipts (44ADA) or 8%/6% of business turnover (44AD) as income — and your total income is up to ₹50 lakh. Great for many freelancers: 44ADA explained.
ITR-3: if you have business/professional income but don't opt for presumptive taxation, keep regular books, trade F&O, or your income exceeds the ITR-4 limits.
Decision flow
- Business/professional income? → ITR-3 (or ITR-4 if presumptive).
- Else, any STCG / LTCG over ₹1.25L / capital loss / foreign asset / >1 house? → ITR-2.
- Else, only salary + one house + interest (± LTCG up to ₹1.25L, no losses)? → ITR-1.
Not sure which form is yours?
Answer a 2-minute questionnaire — we map your income to the right ITR form, and a CA double-checks it before filing.
Find my ITR form →New to this? Start with the ITR Filing Guide AY 2026-27 →
General information for AY 2026-27, not individual tax advice. Form eligibility has detailed conditions; verify for your case. Reviewed by a Chartered Accountant.