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
Legal Reference
Section 285 (ITR filing obligation), Section 286 (who must file), ITA 2025 | ITR forms notified by CBDT annually | Due dates under Section 273 of ITA 2025
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.
Disclaimer
This article is for general informational and educational purposes only. It does not constitute legal, financial, or professional tax advice. Readers are advised to consult a qualified Chartered Accountant or tax professional before making any decisions. TaxClue Consultech Pvt Ltd accepts no liability. All case studies and examples in this article are illustrative only and do not represent actual persons or transactions.
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❓ Frequently Asked Questions
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.
What is ITR-4 and who should use it?
ITR-4 (Sugam) is for individuals, HUFs, and partnership firms (not LLP) who opt for presumptive taxation under Sections 44AD (small business turnover up to Rs 3 crore), 44ADA (professionals receipts up to Rs 75 lakh), or 44AE (transport operators) of ITA 2025. The total income must not exceed Rs 50 lakh. ITR-4 cannot be used if you have capital gains, foreign income, foreign assets, agricultural income above Rs 5,000, or are a director/investor in unlisted shares.
What is the due date for filing ITR for Tax Year 2026-27?
For Tax Year 2026-27 (Assessment Year 2027-28), the ITR due dates are: 31 July 2027 for individuals, HUFs, and firms not requiring audit; 31 October 2027 for taxpayers requiring a tax audit (companies and businesses with turnover above audit thresholds); 30 November 2027 for transfer pricing cases; 31 December 2027 for filing a belated return; and up to 2 years from the end of the assessment year for Updated Return (ITR-U).
What happens if I file the wrong ITR form?
Filing the wrong ITR form results in a defective return notice under Section 274 equivalent of ITA 2025. The taxpayer is given 15 days to correct and re-file the return in the correct form. If not corrected, the return is treated as invalid — as if no return was filed — which can lead to late filing penalties, interest on tax due, and potential scrutiny notices. ITR-1 with capital gains income is a common error that triggers defective return notices.
