ITR Forms Guide 2026 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Key Highlights
- ITR-1 (Sahaj): Salaried individuals — salary + 1 house property + other sources — income up to Rs 50 lakh
- ITR-2: Individuals/HUF with capital gains, multiple house properties, foreign income — no business income
- ITR-3: Individuals/HUF with business/professional income (non-presumptive)
- ITR-4 (Sugam): Presumptive income (Section 44AD/44ADA/44AE) — up to Rs 50 lakh income
- ITR-5: LLP, AOP, BOI, firm, trust, co-op society
- ITR-6: Companies (other than charitable trust claiming Section 135 exemption)
- ITR-7: Charitable trusts, political parties, research associations
1. ITR-1 (Sahaj) — Simplest Form
Who can use: Resident individuals (not HUF) with:
- Salary or pension income
- Income from one house property (no loss carried forward)
- Income from other sources (interest, etc.) — NOT from lottery or horse races
- Total income NOT exceeding Rs 50 lakh
Who CANNOT use ITR-1: If you have capital gains, more than one property, foreign income, foreign assets, agricultural income above Rs 5,000, or are a director in a company.
2. ITR-2 — For Capital Gains and Multiple Properties
Who uses: Individuals and HUFs without business/professional income who have:
- Capital gains (equity, property, mutual funds)
- More than one house property
- Foreign income or foreign assets
- Income from lottery, horse races, online gaming
- Director in a company
- Income above Rs 50 lakh
3. ITR-3 — Business/Professional Income
Who uses: Individuals and HUFs with income from business or profession that is NOT covered by presumptive taxation. Includes:
- Regular business income (maintained books of accounts)
- Professional income (CA, doctor, lawyer, consultant — regular, not 44ADA)
- Partner in a firm
- Also includes all ITR-2 income categories
4. ITR-4 (Sugam) — Presumptive Taxation
Who uses: Individuals, HUFs, and firms (not LLP) opting for presumptive taxation under Sections 44AD, 44ADA, or 44AE of ITA 2025, with:
- Total income not exceeding Rs 50 lakh
- Turnover/gross receipts within presumptive scheme limits
- No capital gains, no foreign income, not a director/investor in unlisted shares
5. Quick Selection Guide
| Your Situation | Use This ITR |
|---|---|
| Salaried, no capital gains, total <Rs 50L | ITR-1 |
| Salaried + mutual fund capital gains | ITR-2 |
| Salaried + equity shares/property gains | ITR-2 |
| Business (non-presumptive), regular books | ITR-3 |
| Freelancer/professional (44ADA) <Rs 50L | ITR-4 |
| Small business (44AD) <Rs 50L | ITR-4 |
| HUF with capital gains | ITR-2 |
| Partnership firm / LLP | ITR-5 |
| Company | ITR-6 |
| Trust / NGO / Section 8 company | ITR-7 |
6. Due Dates for ITR Filing (Tax Year 2026-27)
| Category | Due Date |
|---|---|
| Individuals, HUF, firms (non-audit) | 31 July 2027 |
| Taxpayers requiring tax audit (companies/firms with turnover above limits) | 31 October 2027 |
| Transfer pricing cases | 30 November 2027 |
| Belated return | 31 December 2027 |
| Updated return (ITR-U) | 2 years from end of assessment year |
7. Why TaxClue
Choosing the wrong ITR form, missing a schedule (capital gains, foreign income), or filing a defective return triggers notices. TaxClue selects the correct ITR form, prepares all schedules, and files accurately. Contact us for Tax Year 2026-27 ITR filing.
Key Facts About ITR Forms Guide 2026
- Applies in: All states across India, under the relevant central law.
- Mode: Mostly online via the official government portal.
- Typical timeline: Ranges from a few days to a few weeks depending on the case.
- Non-compliance: May attract penalties, interest or late fees.
- Expert help: TaxClue completes the entire process end to end for you.
Which ITR form should a salaried person file?
A salaried person with salary/pension, income from one house property (without loss carried forward), and other source income (interest), with total income up to Rs 50 lakh should file ITR-1 (Sahaj). If the salaried person also has capital gains from shares, mutual funds, or property — even a single rupee — they cannot use ITR-1 and must use ITR-2. Similarly, ITR-2 is needed if they are a director, have foreign assets, or have income above Rs 50 lakh.
Which ITR form should I use for mutual fund capital gains?
If you have capital gains from mutual funds, equity shares, or property (along with salary or other income, but no business income), you should use ITR-2. ITR-1 does not have a capital gains schedule and cannot be used even if the capital gain is small or zero for the year. ITR-2 accommodates all types of capital gains — LTCG, STCG, equity, debt, property — along with salary, house property, and other sources income.
Over 90% of compliance penalties in India arise from missed due dates — timely handling can save businesses thousands of rupees each year.
ITR Forms Guide 2026: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.
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