The ITR form you file depends on four things: whether you are an individual, HUF, firm, LLP, company or trust; your residential status; where your income comes from; and how much of it there is. This guide matches each situation to a form for FY 2025-26 (AY 2026-27), with the disqualifiers that push you up a form and the due date attached to each.
If you want a CA to pick the form and file it, see our income tax return filing service.
Quick answers
- Resident, salary or pension, house property and interest, total income up to ₹50 lakh: ITR-1 (Sahaj).
- Capital gains beyond the ITR-1 limit, foreign income or assets, director status or unlisted shares, and no business income: ITR-2.
- Business or professional income from books, including F&O trading: ITR-3.
- Presumptive income under 44AD, 44ADA or 44AE, total income up to ₹50 lakh: ITR-4 (Sugam).
- Firms, LLPs, AOPs, BOIs and cooperative societies: ITR-5. Companies: ITR-6. Trusts and exempt institutions: ITR-7.
Why the form matters: the section 139(9) defective return
A return filed in the wrong form can be declared defective under section 139(9). You are given 15 days to correct it, and if you do not, the return is treated as never filed. That brings the section 234F late fee, section 234A interest and a delayed refund.
The wrong form can also cost you the right to carry forward business losses or claim foreign tax credit, because the schedules you need are simply not in the simpler forms.
What changed for AY 2026-27
The return for FY 2025-26 is filed under the Income-tax Act, 1961, on the ITR-1 to ITR-7 set described here. The Income-tax Act, 2025 came into force on 1 April 2026 and applies from Tax Year 2026-27. Returns for that year will be filed in 2027 under section 263 of the new Act, on new return forms that the department has yet to notify. Do not assume the form names below will carry over.
Two points for this year. ITR-1 and ITR-4 allow long-term capital gains under section 112A up to ₹1,25,000, so a salaried filer with small equity gains may not need ITR-2. And the non-audit due date for business and professional income moved to 31 August 2026, which follows audit liability rather than the form. Read this with our guide on how to file your ITR for AY 2026-27.
Key terms: Sahaj, Sugam, 112A, Schedule VDA, presumptive
- Sahaj (ITR-1): the simplest form, for resident individuals with straightforward income.
- Sugam (ITR-4): the presumptive-scheme form for small business and professional income.
- LTCG under section 112A: long-term capital gains on listed equity shares and equity mutual funds.
- Schedule VDA: the schedule where virtual digital asset (crypto) income is reported.
- Presumptive taxation: declaring profit at a set percentage of turnover or receipts under sections 44AD, 44ADA or 44AE, without full books.
The form selector, with due dates
| Form | Who can file | Cannot use if | Due date for AY 2026-27 |
|---|---|---|---|
| ITR-1 (Sahaj) | Resident individual, salary or pension, house property, other sources, 112A gains up to ₹1,25,000, total income up to ₹50 lakh | Director, unlisted shares, foreign assets or income, short-term gains, losses to carry forward | 31 July 2026 |
| ITR-2 | Individual or HUF with no business income, including capital gains, foreign assets and NRIs | Business or professional income | 31 July 2026 |
| ITR-3 | Individual or HUF with business or professional income, including F&O and partners in firms | Firms, companies, trusts | 31 August 2026 if no audit; 31 October 2026 if audit applies |
| ITR-4 (Sugam) | Resident individual, HUF or firm (not an LLP) on presumptive income, total income up to ₹50 lakh | Director, unlisted shares, foreign assets or income, short-term gains, long-term gains above ₹1,25,000 | 31 August 2026 |
| ITR-5 | Firms, LLPs, AOPs, BOIs, AJPs and cooperative societies | Individuals, HUFs, companies | 31 August 2026 if no audit; 31 October 2026 if audit applies |
| ITR-6 | Companies other than those claiming exemption as charitable institutions | Individuals, trusts | 31 October 2026 |
| ITR-7 | Trusts, political parties and institutions filing under sections 139(4A) to 139(4D) | Ordinary taxpayers | 31 October 2026 where an audit applies |
The due date follows audit liability, not the form. An ITR-3 filer who is liable to tax audit files by 31 October 2026, not 31 August. Transfer pricing cases have until 30 November 2026.
Which form fits your situation
| Situation | Correct form |
|---|---|
| Salaried, FD interest, one house property | ITR-1 |
| Salaried, mutual fund or share gains beyond the ITR-1 limit | ITR-2 |
| Salaried, plus F&O trading (even one trade) | ITR-3 |
| Salaried, plus crypto (VDA) income. See crypto ITR filing | ITR-2, or ITR-3 if it is business income |
| Freelancer under 44ADA, within the receipts limit. See ITR filing for freelancers | ITR-4 |
| Sole proprietor declaring profit from books | ITR-3 |
| Sole proprietor on presumptive income under 44AD, within the turnover limit | ITR-4 |
| Partner receiving salary, interest or bonus from a firm | ITR-3 |
| NRI with Indian salary, rent or property sale. See ITR filing for NRIs | ITR-2 |
The four forms individuals use most
ITR-1 (Sahaj): use it only if all of these apply
- You are a resident individual (not an NRI and not "resident but not ordinarily resident").
- Your income is from salary or pension, house property and other sources such as interest, excluding lottery and race horse winnings.
- Any long-term capital gains are under section 112A and do not exceed ₹1,25,000.
- Agricultural income, if any, is up to ₹5,000.
- Total income does not exceed ₹50 lakh.
- You are not a company director, do not hold unlisted shares, have no foreign assets or income and have no losses to carry forward.
Most salaried filers start here. See ITR filing for salaried taxpayers.
ITR-2
For individuals and HUFs with no business or professional income who have capital gains beyond the ITR-1 limit, more than the house property ITR-1 allows, foreign income or assets (Schedule FA), director status, unlisted shares, VDA income in Schedule VDA, or total income above ₹50 lakh. NRIs file ITR-2 unless they have business income. A HUF with no business income files ITR-2 as well; see ITR filing for a HUF.
ITR-3, and what it demands of you
For individuals and HUFs with income from business or profession: proprietors keeping books, freelancers not using the presumptive scheme, F&O and intraday traders, anyone whose turnover is above the ITR-4 limits, and partners receiving salary, interest or bonus from a firm.
ITR-3 is the form people try to avoid, and with reason. It requires a balance sheet, a profit and loss account and detailed schedules, and a tax audit may apply. For an individual or HUF in business, books are required once business income exceeded ₹2,50,000, or turnover exceeded ₹25,00,000, in any of the three preceding years. See ITR filing for business.
ITR-4 (Sugam), and the presumptive turnover limits
For a resident individual, HUF or partnership firm (not an LLP) with total income up to ₹50 lakh that declares profit on a presumptive basis. The turnover limits are what a proprietor needs to check:
| Scheme | Basic limit | Higher limit, where cash receipts are not more than 5% |
|---|---|---|
| Section 44AD (business) | Turnover up to ₹2 crore | Turnover up to ₹3 crore |
| Section 44ADA (profession) | Gross receipts up to ₹50 lakh | Gross receipts up to ₹75 lakh |
ITR-4 is not available to a company director, a holder of unlisted shares, or anyone with foreign assets, foreign income, short-term capital gains, or long-term gains above ₹1,25,000. Gig workers on presumptive income often fit here; see ITR filing for gig workers. Our guide to section 44AD presumptive taxation covers the rates and the five-year lock-in.
Forms for firms, companies and trusts
- ITR-5: partnership firms, LLPs, associations of persons, bodies of individuals, artificial juridical persons and cooperative societies. A firm on presumptive income may use ITR-4 instead; an LLP may not.
- ITR-6: companies, other than those claiming exemption as charitable institutions. A company's return sits alongside its annual ROC filing.
- ITR-7: trusts, political parties, research institutions and others filing under sections 139(4A) to 139(4D), including a Section 8 company claiming exemption.
How to decide, step by step
- List every income source: salary, house property, capital gains, business, crypto and foreign income.
- Check your residential status. Non-residents cannot use ITR-1 or ITR-4.
- Check your total income. Above ₹50 lakh rules out ITR-1 and ITR-4.
- Flag the disqualifiers: director status, unlisted shares, foreign assets, VDA income, short-term gains.
- Separate business from non-business income. Business or professional income means ITR-3, or ITR-4 on the presumptive scheme within its limits.
- Confirm on the portal, and check its suggestion against your own list.
Special cases that move you up a form
- F&O trading, even one trade: F&O is business income, so a salaried person who traded once files ITR-3, not ITR-1 or ITR-2. This is one of the most common and expensive mistakes.
- Crypto: VDA income rules out ITR-1 and ITR-4. It goes in Schedule VDA of ITR-2, or ITR-3 if you trade as a business.
- Director of a company: rules out ITR-1 and ITR-4, even if the company is dormant.
- Unlisted shares: holding any at any time in the year rules out ITR-1 and ITR-4, including shares in a start-up you founded.
- Foreign assets or income: rules out ITR-1 and ITR-4, and needs Schedule FA.
- NRI or RNOR status: rules out ITR-1 and ITR-4.
If you filed the wrong form
If you spot it yourself, file a revised return in the correct form. For AY 2026-27 the revised return window runs to 31 March 2027, or until your assessment is completed if that is earlier.
If the department spots it first, you will receive a defective return notice under section 139(9). Respond within 15 days, or the return is treated as not filed.
Common mistakes
- Filing ITR-1 with short-term gains, or long-term gains above ₹1,25,000. Use ITR-2.
- Filing ITR-1 or ITR-2 after a single F&O trade. Use ITR-3.
- Filing ITR-4 with foreign income or assets. Sugam does not allow them.
- Directors and unlisted shareholders using ITR-1. They need ITR-2, or ITR-3 with business income.
- An LLP filing ITR-6 or ITR-4. LLPs file ITR-5.
- Using ITR-4 when turnover is above the 44AD or 44ADA limit, or when an audit applies.
- Forgetting to e-verify. The return must be e-verified within 30 days, and an unverified return is invalid.
Penalties for a wrong or late filing
- Defective return, section 139(9): correct within 15 days, or the return is treated as not filed.
- Late fee, section 234F: ₹5,000, or ₹1,000 where total income does not exceed ₹5 lakh.
- Interest, section 234A: 1% a month on unpaid tax from the due date until you file.
Key takeaways
- Salary, house property and interest, total up to ₹50 lakh, no disqualifiers: ITR-1.
- Capital gains, foreign assets, director status or unlisted shares, no business: ITR-2.
- Business income from books, F&O or partner income: ITR-3. Presumptive within the limits: ITR-4.
- Firms, LLPs and cooperative societies: ITR-5. Companies: ITR-6. Trusts: ITR-7.
- The due date follows audit liability: 31 July, 31 August or 31 October 2026.
- E-verify within 30 days, or the return is invalid.
Not sure which form fits your income?
Capital gains, crypto, F&O or director status can each move you to a different form, and getting it wrong means a defective return notice and a refile. Our CAs pick the form and file it through our income tax return filing service. Contact us, or call or WhatsApp +91 70444 94804.
Frequently asked questions
Konsa ITR form chunau?
Yeh aapke income source aur taxpayer type par depend karta hai. Salary, house property aur interest ho aur income ₹50 lakh tak ho to ITR-1; capital gains ya foreign assets ho to ITR-2; business ya F&O income ho to ITR-3; presumptive income ho to ITR-4.
Which ITR form does a company director file?
ITR-2 if the director has no business income, or ITR-3 if they do. Director status rules out ITR-1 and ITR-4, even where the company is dormant.
I did one F&O trade. Can I still file ITR-1?
No. F&O trading is business income, so even a single trade means ITR-3.
I am a freelancer with ₹30 lakh of receipts. Can I file ITR-4?
Yes, if you are a resident in a profession covered by section 44ADA and declare at least 50% of receipts as profit. The limit is ₹50 lakh of receipts, or ₹75 lakh where cash receipts are not more than 5%.
Can I use ITR-1 if I have salary and crypto income?
No. VDA income must go in Schedule VDA, which is in ITR-2, or ITR-3 if you trade as a business.
Do NRIs file ITR-2?
Generally yes, or ITR-3 if they have business income in India. NRIs cannot use ITR-1 or ITR-4.
What if I file the wrong ITR form?
You may receive a defective return notice under section 139(9) and must correct it within 15 days. You can also file a revised return in the correct form by 31 March 2027.
Does ITR-4 allow audit cases?
No. If a tax audit under section 44AB applies, you file ITR-3 (or ITR-5 for a firm), and your due date is 31 October 2026.
What is the due date for ITR-3?
31 August 2026 if your accounts do not need an audit, and 31 October 2026 if they do. The date follows audit liability, not the form.
Which form does an LLP file?
ITR-5. LLPs cannot use ITR-4 or ITR-6.
Will the same forms apply for Tax Year 2026-27?
Not necessarily. From Tax Year 2026-27 returns are filed under section 263 of the Income-tax Act, 2025, and the department is to notify new return forms. The ITR-1 to ITR-7 set here is the 1961 Act set for AY 2026-27.
About the author
CA Deepak Jaiswal
Founding Partner, FCA at Regikart. Want to discuss this in the context of your business?
