Income tax · Individuals and salaried
Which ITR form should I file?
Short answer
It depends on who you are and what income you have. ITR-1 is for resident individuals with salary, up to two house properties and other income, totalling up to ₹50 lakh. ITR-2 covers capital gains above the ITR-1 limit, foreign income or assets, and directors. ITR-3 is for business or professional income, and ITR-4 for presumptive income up to ₹50 lakh.
This answer covers returns for FY 2025-26 (assessment year 2026-27), filed under section 139 of the Income-tax Act, 1961 (section 263 of the Income-tax Act, 2025 for tax year 2026-27 onwards). The Income-tax Rules, 2026 keep the same form names, ITR-1 (Sahaj) to ITR-7, so the table below will remain a good guide for later years.
| Form | Who can use it | Who cannot |
|---|---|---|
| ITR-1 (Sahaj) | Resident individuals with total income up to ₹50 lakh from salary or pension, up to two house properties, interest and other sources, and long-term gains on listed shares or equity funds (section 112A, now section 198 of the 2025 Act) up to ₹1.25 lakh | Non-residents; directors of a company; holders of unlisted shares; anyone with foreign assets or income, other capital gains, or business income |
| ITR-2 | Individuals and HUFs without business income, including those with capital gains, more than two house properties, income above ₹50 lakh, foreign assets or income, directors and non-residents | Anyone with business or professional income |
| ITR-3 | Individuals and HUFs with income from business or profession, including partners in a firm | — |
| ITR-4 (Sugam) | Resident individuals, HUFs and firms (not LLPs) with presumptive business or professional income (sections 44AD, 44ADA and 44AE, now combined in section 58), total income up to ₹50 lakh, up to two house properties, and section 112A (now 198) gains up to ₹1.25 lakh | Directors, holders of unlisted shares, those with foreign assets, and anyone outside the limits |
| ITR-5, ITR-6, ITR-7 | Firms and LLPs; companies; trusts and institutions | — |
Common mistakes
- Using ITR-1 after selling property or unlisted shares. Any capital gain other than section 112A (now 198) gains within ₹1.25 lakh needs ITR-2 (or ITR-3).
- Ignoring foreign assets. A foreign bank account, foreign shares or ESOPs require ITR-2 or ITR-3 with Schedule FA, even if they earned nothing.
- Directors using ITR-1. A director of any company, including a small private company, cannot use ITR-1 or ITR-4.
Filing on the wrong form usually leads to a notice that the return is defective under section 139(9) (now section 263(7)), which must be corrected within the time given.
Tip
The e-filing utility asks questions and suggests a form, but it relies on your answers. Check the list above, especially for capital gains and foreign assets, before you submit.
Legal basis
- Section 139, Income-tax Act, 1961, and rule 12, Income-tax Rules, 1962 (returns for AY 2026-27)
- Section 263, Income-tax Act, 2025, and the Income-tax Rules, 2026 (returns for tax year 2026-27 onwards)
Official sources
Related questions
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