Which ITR Form Should You File for AY 2026-27? A Simple Guide
Every year, one question trips up lakhs of taxpayers before they even begin filing: “Which ITR form do I actually need?” Pick the wrong one and your return can be treated as defective, delaying your refund and inviting notices. This guide explains, in plain language, which Income Tax Return (ITR) form applies to you for Assessment Year 2026-27 (Financial Year 2025-26) — the year you are filing for now.
The quick answer: ITR forms at a glance
| Form | Who it is for | Income limit |
|---|---|---|
| ITR-1 (Sahaj) | Resident salaried/pension individuals, one house property, other sources | Up to ₹50 lakh |
| ITR-2 | Individuals/HUFs with capital gains, more than one house property, foreign income/assets — but no business income | No limit |
| ITR-3 | Individuals/HUFs with business or professional income (including F&O traders) | No limit |
| ITR-4 (Sugam) | Residents under presumptive taxation (44AD/44ADA/44AE) | Up to ₹50 lakh |
| ITR-5/6/7 | Firms & LLPs / Companies / Trusts & NGOs | — |
ITR-1 (Sahaj): for most salaried individuals
ITR-1 is the simplest form and fits the majority of salaried taxpayers. You can file ITR-1 if you are a resident individual with total income up to ₹50 lakh, earning from salary or pension, one house property, and other sources such as interest. Agricultural income up to ₹5,000 is allowed, and this year you may also report long-term capital gains under Section 112A up to ₹1.25 lakh (from listed equity shares and equity mutual funds) within ITR-1.
You cannot use ITR-1 if your income exceeds ₹50 lakh, you own more than one house property, you have business or professional income, capital losses to carry forward, foreign assets or income, unlisted shares, or you are a company director.
ITR-2: for capital gains and multiple properties
Choose ITR-2 if you are an individual or HUF who does not have business or professional income but has any of the following: capital gains of any amount (shares, mutual funds or property), income from more than one house property, foreign income or foreign assets, unlisted shares or ESOPs, or agricultural income above ₹5,000. Non-residents and RNOR taxpayers also use ITR-2.
ITR-3: for business and professional income
ITR-3 is for individuals and HUFs earning from a proprietary business or profession — including freelancers who maintain books, and traders with futures & options (F&O) income. It also covers partners in a firm. You can combine salary, house property and capital gains in ITR-3 alongside your business income. Companies and partnership firms do not use this form.
ITR-4 (Sugam): for presumptive taxation
ITR-4 suits resident individuals, HUFs and firms (except LLPs) who opt for the presumptive taxation schemes under Sections 44AD, 44ADA or 44AE — a simplified way for small businesses and professionals to declare income as a fixed percentage of turnover. Total income must be up to ₹50 lakh. You cannot use ITR-4 if you have foreign assets or income, more than the permitted house property, or are a company director.
Key due dates for AY 2026-27
- 31 July 2026 — Individuals and taxpayers whose accounts do not require audit (most salaried filers).
- 31 October 2026 — Taxpayers who require a tax audit.
- 31 December 2026 — Belated or revised returns (late fee of up to ₹5,000 may apply).
The CBDT occasionally extends these deadlines. Always confirm the current date on the official portal, incometax.gov.in, before you file.
What’s new in the ITR forms for AY 2026-27
- The old STCG (15%) and LTCG (10%) rate fields for listed equity have been removed, reflecting the revised capital gains rates.
- Section 80G donations now require the transaction reference number and the bank IFSC code.
- Section 80GGC (donations to political parties) now needs the party name and PAN.
- A new field captures rent that could not be realised from house property.
- ITR-4 filers must now report investment and bank balance details.
- Disclosures for opting in or out of the new tax regime have been expanded for clarity.
How to choose your form in three steps
- Do you run a business or profession? If yes, it is ITR-3 (regular books) or ITR-4 (presumptive scheme).
- Do you have capital gains, foreign assets, or more than one house property? If yes (and no business income), use ITR-2.
- Otherwise, if you are a resident salaried individual under ₹50 lakh, ITR-1 is almost certainly your form.
Frequently asked questions
What happens if I file the wrong ITR form?
The Income Tax Department may treat your return as defective under Section 139(9) and issue a notice giving you time to file a corrected return. This delays your refund, so it is best to select the right form from the start.
Can a salaried person with capital gains still use ITR-1?
Only if the gains are long-term capital gains under Section 112A up to ₹1.25 lakh. Any other capital gains — short-term equity gains, property, or gains above that limit — require ITR-2.
Which ITR form is used for F&O or intraday trading?
Income from futures & options and intraday trading is treated as business income, so it is reported in ITR-3.
Need help filing your return?
Choosing the form is only the first step — correct disclosures, regime selection and deductions decide how much tax you actually pay. TAXAJ’s team of Chartered Accountants files returns for salaried individuals, businesses and NRIs across India. Get in touch with TAXAJ to file accurately and on time.
This article is for general information for AY 2026-27 and is not a substitute for professional advice. Tax rules and deadlines can change; verify details on incometax.gov.in or consult a professional before filing.
