Types of ITR Forms in India and Which One You Should Use

• Summary
• For Assessment Year (AY) 2026–27, the right ITR form depends on your residential status, income sources and taxpayer category.
• ITR-1 or ITR-2 generally applies to eligible individuals without business or professional income.
• ITR-3 or ITR-4 may apply to freelancers, professionals, business owners and traders, depending on their income and eligibility for presumptive taxation.
• ITR-5, ITR-6 and ITR-7 are for specified entities, including firms, LLPs, companies, trusts and certain institutions.

What Is ITR?

An Income Tax Return (ITR) is a form used to report your income, deductions, taxes paid and other prescribed details to the Income Tax Department. Knowing what is ITR⁠ helps you understand your filing obligations and claim eligible tax refunds.

Which ITR Form Should You File?

For Assessment Year (AY) 2026–27, the correct Income Tax Return (ITR) form depends on your residential status, income sources and taxpayer category. Use this decision path to identify which ITR form to file based on your circumstances. 

1. Salaried individuals: ITR-1 may apply if you are a resident individual (other than a resident but not ordinarily resident) with total income up to ₹50 lakh and meet the form’s other conditions. If you have other income or fall outside its eligibility criteria, check ITR-2.
2. Salaried individuals with capital gains: ITR-2 generally applies if you earn capital gains from shares, mutual funds or other assets and have no business or professional income. Eligible Section 112A long-term capital gains up to ₹1.25 lakh may qualify for ITR-1, subject to its other conditions.
3. Freelancers and professionals: If you earn income as a freelancer or professional, ITR-3 generally applies when you calculate your income under the regular provisions. ITR-4 may be an option if you are eligible for presumptive taxation under Sections 44AD, 44ADA or 44AE and satisfy the prescribed requirements.
4. Traders: ITR-3 is generally relevant when intraday trading or futures and options (F&O) income is treated as business income. Delivery-based share investments may instead require ITR-2 when the income is reported as capital gains.
5. Business owners: Business owners need to choose their ITR form based on their business structure and how their income is taxed. Individuals and HUFs generally use ITR-3, although ITR-4 may be available to eligible taxpayers. Firms, LLPs and companies have separate filing requirements.
6. Non-resident Indians (NRIs): ITR-2 may apply if you have no business or professional income. If you have such income, ITR-3 may be required. ITR-1 is not available to non-residents.
7. Hindu Undivided Families (HUFs): The ITR form for a HUF depends on its sources of income. ITR-2 may be suitable when there is no business or professional income. If the HUF earns income from a business or profession, it should check whether ITR-3 or ITR-4 applies.

Types of ITR Forms

The Income Tax Department has seven main types of ITR forms, from ITR-1 to ITR-7. Each form applies to specific taxpayer categories and income sources. The following table summarises the types of ITR forms applicable for Assessment Year (AY) 2026–27. 

ITR type	Income covered	Who can file it
ITR-1 (Sahaj)	Salary, pension, other sources, agricultural income up to ₹5,000 and eligible Section 112A long-term capital gains up to ₹1.25 lakh	Eligible resident individuals with total income up to ₹50 lakh
ITR-2	Salary, pension, capital gains, house property and other sources	Individuals and HUFs without business or professional income who are not eligible for ITR-1
ITR-3	Business or professional income, capital gains and other income	Individuals and HUFs earning business or professional income who do not qualify for ITR-4
ITR-4 (Sugam)	Presumptive income under Sections 44AD, 44ADA or 44AE	Eligible resident individuals, HUFs and firms other than LLPs, subject to the ₹50 lakh income limit and other conditions
ITR-5	Business or professional income and other applicable income	Firms, LLPs, AOPs, BOIs and other specified entities
ITR-6	Business or professional income and other applicable income	Companies that do not claim exemption under Section 11
ITR-7	Income reported under the relevant provisions for specified organisations and institutions	Persons and entities required to file under Sections 139(4A), 139(4B), 139(4C) or 139(4D)

ITR-1 (Sahaj)

ITR-1, also known as Sahaj, is a simplified income tax return form for eligible resident individuals with total income up to ₹50 lakh. It is generally suitable for salaried individuals and pensioners whose income falls within the categories permitted by the form. 2

Who can file ITR-1?

Before choosing ITR-1 for AY 2026–27, check whether you fall within its eligibility limits:

• Must be a resident individual, not a resident but not ordinarily resident (RNOR).
• Total income must be within ₹50 lakh, and you must satisfy the remaining conditions applicable to the form.

• Income includes salary or pension, income from up to two house properties, or eligible income from other sources, such as interest and dividends.
• Agricultural income does not exceed ₹5,000.
• They have eligible long-term capital gains under Section 112A of up to ₹1.25 lakh, subject to the other eligibility conditions.

Who must NOT use ITR-1?

ITR-1 cannot be used by taxpayers who fall into the following categories:

• Individuals who are non-residents or RNORs.
• Individuals with total income exceeding ₹50 lakh, subject to the specific Section 112A exception in the form’s instructions.
• Individuals with business or professional income or short-term capital gains.
• Individuals with Section 112A long-term capital gains exceeding ₹1.25 lakh.
• Individuals who are company directors or have held unlisted equity shares during the relevant financial year.
• Individuals with foreign assets, signing authority in foreign accounts or foreign-source income.
• Individuals with specified deferred ESOP tax obligations, tax deducted under Section 194N, or brought-forward or carry-forward losses.

Common mistakes when filing ITR-1

• Assuming that all salaried individuals qualify for ITR-1 simply because their income is below ₹50 lakh.
• Reporting capital gains without checking whether the form permits them.
• Overlooking foreign assets or residential-status requirements.
• Selecting ITR-1 despite having business or professional income.
• Assuming that the agricultural-income limit or capital-gains threshold overrides the form’s other eligibility conditions.

ITR-2

ITR-2 is for individuals and Hindu Undivided Families (HUFs) who do not earn business or professional income and are not eligible to file ITR-1. It is commonly used by taxpayers who have capital gains from selling shares, mutual funds or property, or whose income does not meet the eligibility conditions for ITR-1.

Who can file ITR-2?

A taxpayer may use ITR-2 if they meet the applicable conditions and have income from one or more of the following sources:

• Salary or pension.
• One or more house properties.
• Short-term or long-term capital gains from shares, mutual funds, property or other assets.
• Other sources, including specified lottery winnings and income from racehorses.
• Agricultural income exceeding ₹5,000.
• Foreign assets or foreign-source income that must be reported.
• Total income exceeding ₹50 lakh.

ITR-2 is available to resident and non-resident individuals, as well as eligible HUFs. There is no ₹50 lakh upper income limit for using ITR-2, provided the other conditions are met.

Who must NOT use ITR-2?

Individuals and HUFs with income chargeable under the head “Profits and Gains of Business or Profession” generally cannot use ITR-2. This includes taxpayers with relevant business income or taxable remuneration, commission or other income from a partnership firm that falls under this head. They should assess ITR-3 or, if eligible, ITR-4.

Common mistakes when filing ITR-2

• Assuming that income exceeding ₹50 lakh automatically requires ITR-3.
• Choosing ITR-2 despite having business or professional income.
• Overlooking capital gains from shares, mutual funds or property.
• Failing to report foreign assets or foreign-source income where required.
• Assuming that investment transactions do not need to be reported if tax has already been deducted.

ITR-3

ITR-3 is used by individuals and HUFs who have income from business or profession and are not eligible to use ITR-4. It accommodates business or professional income alongside salary, pension, house property income, capital gains and income from other sources. 4

Who can file ITR-3?

ITR-3 may apply to:

• Individuals earning profits from a business or profession.
• HUFs earning business or professional income.
• Partners receiving taxable salary, interest, commission, bonus or remuneration from a partnership firm.
• Traders whose intraday or futures and options (F&O) activity is treated as business income.
• Taxpayers who have business or professional income alongside salary or capital gains.

Who must NOT use ITR-3?

Taxpayers without business or professional income should generally consider ITR-1 or ITR-2, depending on their circumstances. Those who qualify for and choose the presumptive taxation option may use ITR-4 instead.

ITR-4 (Sugam)

ITR-4, also known as Sugam, is an optional simplified return for eligible resident individuals, HUFs and firms other than LLPs that report business or professional income under specified presumptive taxation provisions. These include Sections 44AD, 44ADA and 44AE. 5

Who can file ITR-4?

A taxpayer may qualify if:

• They are an eligible resident individual, HUF or firm other than an LLP.
• Their total income does not exceed ₹50 lakh.
• Their business or professional income is calculated under an eligible presumptive taxation scheme.
• Their other income falls within the categories permitted by the form, which may include salary or pension, house property, other sources and eligible Section 112A long-term capital gains up to ₹1.25 lakh.

This turnover threshold will be determined based on the respective presumptive tax scheme that is applied. In the case of Section 44AD, the normal threshold of turnover is ₹2 crore but this may be increased to ₹3 crore provided that the condition of cash receipts is fulfilled.

Who must NOT use ITR-4?

ITR-4 cannot be used by taxpayers who do not satisfy its eligibility conditions. Exclusions include specified company directors, taxpayers with short-term capital gains, those with Section 112A long-term capital gains exceeding ₹1.25 lakh, holders of unlisted equity shares, and certain taxpayers with foreign assets or income, deferred ESOP tax obligations or losses to be carried forward. LLPs are also ineligible.

ITR-5

ITR-5 is applicable to specified entities, including:

• Limited liability partnerships (LLPs).
• Firms.
• Associations of persons (AOPs).
• Bodies of individuals (BOIs).
• Cooperative societies.
• Artificial juridical persons and other entities covered by the applicable rules.

Certain investment trusts and business trusts may also fall within the relevant filing categories, depending on their legal status. 6

Who must NOT use ITR-5?

Companies required to file ITR-6 and persons required to file ITR-7 under the specified statutory provisions must not use ITR-5. Individuals and HUFs filing personal returns should use the form applicable to their own circumstances.

ITR-6

ITR-6 is used by companies required to file income tax returns that are not claiming exemption under Section 11, which concerns income from property held for charitable or religious purposes. 7

Who can file ITR-6?

Companies that are required to file returns and do not claim the relevant Section 11 exemption may use ITR-6, subject to the applicable filing requirements.

Who must NOT use ITR-6?

Companies claiming exemption under Section 11 should not use ITR-6. They should check whether ITR-7 or another applicable filing route is required based on their status and the relevant provisions.

ITR-7

ITR-7 applies to persons, including specified companies, required to file returns under Sections 139(4A), 139(4B), 139(4C) or 139(4D). These provisions cover specified charitable or religious trusts, political parties, research associations, news agencies, universities, colleges and other qualifying institutions. 8

Who must NOT use ITR-7?

The taxpayer who does not belong to the aforementioned filing category, must select the correct form based on his tax status and income. Every trust or organisation is not eligible for ITR-7; some trusts or entities might require ITR-5.

ITR Filing Deadline and What Happens If You Miss It

ITR filing deadlines depend on the taxpayer category, audit requirements and any extensions announced by the Central Board of Direct Taxes (CBDT). For AY 2026–27, use the revised dates announced by the department rather than relying on dates from previous years.

Filing category	Due date for AY 2026–27
Individuals filing ITR-1 or ITR-2	31 July 2026
Eligible non-audit business/professional cases	31 August 2026
Specified taxpayers subject to audit	21 November 2026, extended from 31 October 2026
Specified transfer-pricing cases	30 November 2026
Belated return	31 December 2026, or completion of assessment if earlier

Deadline update: A CBDT circular dated 29 September 2026 extended the due date for the specified audit-category returns to 21 November 2026.

What happens if you miss the ITR deadline?

Missing the applicable deadline can have several consequences:

• Late filing fee: Under Section 234F, the fee is generally ₹5,000, reduced to ₹1,000 where total income does not exceed ₹5 lakh.
• Interest on unpaid tax: Interest may apply to outstanding tax liability.
• Loss carry-forward restrictions: Certain losses may not be carried forward if the return is filed late.
• Refund delays: A late return may delay the processing of a refund.
• Other consequences: Additional consequences may apply depending on the taxpayer’s circumstances and applicable law.

Belated, Revised and Updated Returns

If you miss the original ITR deadline for AY 2026–27, you can generally file a belated return until 31 December 2026, or before completion of the assessment, whichever is earlier. Late-filing fees and other consequences may apply.

If you have already filed a return but later discover an omission or incorrect statement, you can file a revised return. From AY 2026–27, a revised return can generally be filed up to 31 March 2027, or before completion of the assessment, whichever is earlier. A revised return filed after 31 December may attract an additional fee.

An updated return, or ITR-U, provides a separate route for reporting eligible additional income after the normal belated or revised return window has closed. Subject to the applicable conditions, an updated return can be filed within the prescribed four-year period and may require additional tax.

The Income Tax Department confirms the 31 December 2026 belated-return deadline, the revised-return extension to 31 March 2027 and the four-year ITR-U framework

What to Do After Filing: ITR-V and Verification

After filing your ITR, check that the verification step is complete. This is necessary for the return to be treated as validly filed. Depending on the method you choose, you may be able to finish the process online or submit a signed ITR-V.

1. Keep a copy of your return: Download the filed ITR and note its acknowledgement number.
2. Complete e-verification: Available options include Aadhaar OTP, net banking, an eligible bank or demat account, and a digital signature certificate.
3. Post the signed ITR-V, if applicable: Print and sign the form and send it to the CPC as directed by the Income Tax Department.
4. Check the verification deadline: You generally have 30 days from filing. Late verification may change the date treated as the filing date and could result in late-filing consequences. If the return is not verified, it may be treated as invalid unless the department accepts a request for condonation.

You can track the return’s status through the official e-filing portal after verification.

Which ITR Form for Traders and Investors?

The correct ITR form for traders and investors depends on the nature of the transaction and how the resulting income is classified for tax purposes. Simply investing in the stock market does not automatically mean you have business income.

Activity	Generally applicable form	Key consideration
Equity delivery investments	ITR-2	Capital gains or losses are generally reported here if there is no business or professional income
Mutual fund redemptions	ITR-2	Capital gains are reported according to the applicable tax treatment
Intraday equity trading	ITR-3	Intraday trading income is generally treated as speculative business income
Futures and options (F&O) trading	ITR-3	Eligible derivatives trading is generally treated as non-speculative business income
Trading with eligible presumptive taxation	ITR-4 may apply	Only where the taxpayer and income satisfy all the form’s conditions

The right form may differ if you earn income from more than one source. Make sure your chosen form covers all your income and meets the eligibility rules. This includes knowing which ITR form to file for intraday trading and how to show mutual fund investment in ITR⁠.

Does Your Tax Regime Affect Which Form You File?

Choosing the old or new tax regime affects how eligible income is taxed and which deductions or exemptions may be claimed. It does not, by itself, determine the ITR form you must use.

The form is primarily determined by your taxpayer category, residential status, income sources and eligibility conditions. Once you identify the applicable form, you can determine which tax regime is available and more suitable for your circumstances.

The process of choosing a tax regime depends on the type of income you earn. If you do not have business or professional income, you can generally make the choice each year when filing your ITR, subject to the rules. If you do have such income, opting out of the default regime may require a prescribed declaration to be filed by the applicable deadline.

Before making a decision, calculate your taxable income after considering the deductions and exemptions available under each regime. This guide on how to calculate taxable income⁠ can help you understand the calculation.

Conclusion

Choosing the right ITR form starts with identifying your taxpayer category and income sources. ITR-1 and ITR-2 generally cover eligible individuals without business income, while ITR-3 and ITR-4 apply to specified business or professional income situations. ITR-5, ITR-6 and ITR-7 cover other eligible entities. Check the assessment-year-specific eligibility conditions, filing deadline and verification requirements before submitting your return.

FAQ‘s