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Income Tax

Which ITR Form Should You File?

Updated June 2026 · Verified
The correct ITR form depends on your income sources and taxpayer category. Salaried individuals with income up to ₹75 lakh use ITR-1. Those with capital gains use ITR-2. Business or profession income requires ITR-3 (regular) or ITR-4 (presumptive). Filing the wrong form results in a defective return notice from the Income Tax Department.

Which ITR Form Applies to Your Income Sources?

The Income-tax Act, 2025 prescribes seven ITR forms. Use the decision table below to identify the right one for Tax Year 2026-27.

ITR Form Who Should File Income Limit
ITR-1 (Sahaj) Resident individual with salary, one house property, other sources (interest, etc.), and agricultural income up to ₹5,000 Total income up to ₹75 lakh
ITR-2 Individuals and HUFs with income from salary, house property, capital gains, other sources, or foreign assets — but no business/profession income No limit
ITR-3 Individuals and HUFs with income from business or profession (maintaining regular books of accounts) No limit
ITR-4 (Sugam) Individuals, HUFs, and partnership firms (not LLP) opting for presumptive taxation under Sections 44AD, 44ADA, or 44AE Turnover up to ₹3 crore (44AD) or ₹75 lakh (44ADA)
ITR-5 Partnership firms, LLPs, AOPs, BOIs, and other entities (not companies or individuals) No limit
ITR-6 Companies not claiming exemption under Section 11 (charitable/religious trusts) No limit
ITR-7 Trusts, political parties, institutions, universities, and persons required to furnish return under Sections 139(4A), 139(4B), 139(4C), or 139(4D) No limit

How to Decide: Income Source to Form Mapping

Use this quick-reference mapping to match your income type to the right form:

Income Source Applicable Form(s)
Salary onlyITR-1
Salary + House PropertyITR-1
Salary + Capital GainsITR-2
Salary + Foreign Income / AssetsITR-2
Freelancing / Professional IncomeITR-3 (books) or ITR-4 (presumptive)
Business Income (regular books)ITR-3
Business Income (presumptive)ITR-4
Multiple House PropertiesITR-2
Director of a CompanyITR-2 or ITR-3
Unlisted Equity SharesITR-2 or ITR-3
Partnership Firm / LLPITR-5
Private Limited CompanyITR-6
Charitable Trust / NGOITR-7
Important: If you qualify for ITR-1 but also have capital gains from selling shares or mutual funds, you must use ITR-2 instead. ITR-1 does not accommodate capital gains income.

What Happens If You File the Wrong ITR Form?

If you file an incorrect ITR form, the Income Tax Department issues a defective return notice under Section 139(9) of the Income-tax Act, 2025. You get 15 days (extendable on request) to file a corrected return. If you do not respond, the return is treated as invalid and considered as if never filed.

Tip: If you receive a defective return notice, log in to the e-filing portal, go to Pending Actions → Worklist, and file the response with the correct ITR form.

Can NRIs File ITR-1?

No. Non-Resident Indians (NRIs) cannot file ITR-1 or ITR-4. NRIs must use ITR-2 (no business income) or ITR-3 (with business income) regardless of the income amount. This applies to both NRIs and RNORs (Resident but Not Ordinarily Resident).

Which Form for Salaried Employees with Investments?

A salaried employee who only has salary, bank interest, and one house property can file ITR-1. However, if you also sold equity shares, mutual fund units, or property during the year, you need ITR-2 to report capital gains. The ₹75 lakh total income threshold for ITR-1 is another common reason for upgrading to ITR-2.

Legacy note: ITR form eligibility criteria under the Income-tax Act, 1961 remain substantially the same under the Income-tax Act, 2025. The terminology has changed (“Tax Year” replaces “Assessment Year”), but the form numbering (ITR-1 through ITR-7) is unchanged.

Frequently Asked Questions

Can a salaried person with only fixed deposit interest file ITR-1?

Yes. ITR-1 covers salary, one house property, and other sources including fixed deposit interest, provided your total income does not exceed ₹75 lakh and you are a resident individual.

Which ITR form should a freelancer use?

Freelancers earning professional income can file ITR-4 (Sugam) if they opt for presumptive taxation under Section 44ADA (gross receipts up to ₹75 lakh). If they maintain regular books of accounts, they must file ITR-3.

Is ITR-4 available for LLPs?

No. ITR-4 is available only to individuals, HUFs, and partnership firms (other than LLPs). LLPs must file ITR-5.

I am a company director with only salary income. Which form should I use?

Company directors cannot use ITR-1. You must file ITR-2 if you have no business income, or ITR-3 if you also earn business or professional income.

What if my income exceeds ₹75 lakh but I only have salary income?

ITR-1 has a total income cap of ₹75 lakh. If your income exceeds this limit, you must file ITR-2 even if your only source is salary.

Not Sure Which Form to File?

Our CAs will analyse your income sources and file the correct ITR form for Tax Year 2026-27.

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