ITR form guide · FY 2025-26 · AY 2026-27

Which ITR form should you file?

The Income Tax portal lists 7 ITR forms. Salaried filers only ever need one of four. This guide finds yours in 30 seconds — and flags the disqualifiers most articles miss.

Quick decision tree

  1. 1. Do you have income from a business or profession?
    • Yes, opting for presumptive (44AD / 44ADA / 44AE) and total income ≤ ₹50L → ITR-4 (Sugam)
    • Yes, not opting for presumptive → ITR-3
    • No → continue to step 2
  2. 2. Do you have ANY capital gains? (equity LTCG/STCG, property sale, gold sale, etc.)
    • Yes → ITR-2
    • No → continue to step 3
  3. 3. Are any of these true?
    • Total income above ₹50 lakh
    • More than one house property
    • Foreign income / foreign assets
    • You are a director / hold unlisted equity shares
    • RNOR or non-resident
    • Agricultural income above ₹5,000

    Any "yes" → ITR-2

  4. 4. Otherwise → ITR-1 (Sahaj)

Choose the simplest form you legally can. ITR-1 is the fastest to file and the least likely to trigger a defective-return notice under Section 139(9).

ITR-1 (Sahaj)

Most salaried employees with simple incomes.

✓ Use ITR-1 (Sahaj) when

  • •Resident individual; total income up to ₹50 lakh
  • •Income only from salary / pension
  • •One house property (no brought-forward loss)
  • •Other sources: bank interest, dividend, family pension (subject to limits)
  • •Agricultural income up to ₹5,000

✗ Do NOT use ITR-1 (Sahaj) when

  • •You have capital gains from shares / mutual funds / property
  • •You have foreign income or hold foreign assets
  • •You have more than one house property
  • •You are a director in a company
  • •You hold unlisted equity shares
  • •You are RNOR or non-resident
  • •Total income exceeds ₹50 lakh

Example

Software engineer in Bengaluru, ₹18L gross salary, rents an apartment, has ₹40K savings-bank interest, ₹15K mutual-fund dividend. Files ITR-1.

ITR-2

Salaried filers with capital gains or other complexity.

✓ Use ITR-2 when

  • •You have capital gains (equity LTCG / STCG, real-estate sale, etc.)
  • •You have more than one house property
  • •You have foreign income / foreign assets
  • •Total income above ₹50 lakh
  • •You are a director in a company
  • •You hold unlisted equity shares
  • •RNOR / non-resident status

✗ Do NOT use ITR-2 when

  • •You have income from a business or profession (use ITR-3 or ITR-4)

Example

Salaried filer in Mumbai who sold listed equity shares for a ₹3L LTCG and owns two flats. Files ITR-2.

ITR-3

Business or professional income, non-presumptive.

✓ Use ITR-3 when

  • •Income from business or profession not opting for presumptive taxation
  • •F&O / intraday trading treated as business income
  • •Partner in a firm receiving remuneration / interest
  • •Income from speculative / non-speculative business

✗ Do NOT use ITR-3 when

  • •You qualify for ITR-4 and want to opt for presumptive 44AD / 44ADA / 44AE

Example

Freelance designer with ₹40L gross receipts who maintains books of accounts and doesn't opt for the 44ADA presumptive scheme. Files ITR-3.

ITR-4 (Sugam)

Presumptive scheme — small business or professional.

✓ Use ITR-4 (Sugam) when

  • •Resident individual / HUF / firm (not LLP); total income up to ₹50 lakh
  • •Business income computed under presumptive Section 44AD (turnover up to ₹2Cr / ₹3Cr if cash receipts ≤ 5%)
  • •Professional income under Section 44ADA (gross receipts up to ₹75 lakh)
  • •Transport business under Section 44AE

✗ Do NOT use ITR-4 (Sugam) when

  • •You want to declare profit BELOW the presumptive rate
  • •You have foreign income or foreign assets
  • •You are a director or hold unlisted shares
  • •You have brought-forward losses

Example

Independent consultant with ₹30L professional receipts, opts for 44ADA — declares ₹15L as profit (50%). Files ITR-4.

Frequently asked

Which ITR form do salaried employees file in FY 2025-26?▾

Most salaried employees file ITR-1 (Sahaj) — but only if total income is up to ₹50 lakh, comes from salary + one house property + bank/dividend interest, with no capital gains. If you have capital gains (selling shares, mutual funds, property), multiple house properties, foreign income, or income above ₹50 lakh, file ITR-2 instead.

What is the difference between ITR-1 and ITR-2?▾

ITR-1 is the simplest form for salaried individuals with income up to ₹50L from salary, one house property, and other sources. ITR-2 is for cases that ITR-1 cannot handle: capital gains (LTCG / STCG), more than one house property, foreign income/assets, income above ₹50L, being a director in a company, or being an RNOR / non-resident. Both are for individuals without business income.

When do salaried filers need to use ITR-2?▾

You must use ITR-2 if you have ANY of: capital gains from shares / mutual funds / property, income above ₹50 lakh, more than one house property, foreign assets or income, agricultural income above ₹5,000, being a director in a company, holding unlisted equity shares, or being a non-resident / RNOR. Even ₹1 of LTCG above the ₹1.25L exempt threshold pushes you out of ITR-1.

Do I need to file ITR-3 if I have freelance income?▾

If your freelance income is from a profession (consulting, design, writing, software development, etc.) and gross receipts are up to ₹75 lakh, you can use ITR-4 with the 44ADA presumptive scheme — 50% of receipts is deemed profit. If you don't opt for presumptive, or your receipts exceed the limit, use ITR-3. ITR-3 also applies if you trade in equities as a business (F&O, intraday).

Can I file ITR-1 if I have capital gains?▾

No — ITR-1 (Sahaj) cannot be used if you have any capital gains, even if they are below the LTCG exemption threshold (₹1.25L for equity LTCG). You must use ITR-2. The FY 2024-25 amendment allows ITR-1 with up to ₹1.25L LTCG ONLY if you have no other capital gains and no carried-forward losses — verify against the current AY rules before filing.

What if I changed jobs during the year — which ITR?▾

Multiple employers doesn't change your form selection. You still file ITR-1 if otherwise eligible (income up to ₹50L, no capital gains, etc.). Add salary from BOTH employers; TDS will reflect from both Form 16s. Only the latest employer's TDS may show in Form 26AS depending on timing — cross-check carefully.

What is the due date for filing ITR for FY 2025-26?▾

31 July 2026 for individuals not requiring an audit (most salaried filers). 31 October 2026 if your accounts require audit (typically business/profession above turnover threshold). Belated returns can be filed up to 31 December 2026 with a ₹1,000 (income ≤ ₹5L) or ₹5,000 (income > ₹5L) late fee under Section 234F.

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