ITR Form Selector — Pick the Right ITR Form FY 2025-26
Updated: 8 May 2026

ITR Form Selector — Pick the Right ITR Form FY 2025-26

TL;DR

Pick the correct ITR form for FY 2025-26 (AY 2026-27). ITR-1 (Sahaj): salary + ≤2 house properties + LTCG up to ₹1.25L, total income < ₹50L. ITR-2: capital gains, foreign assets, RNOR/NRI, directorship, unlisted shares. ITR-3: business or professional income (regular books). ITR-4 (Sugam): presumptive 44AD/44ADA/44AE. ITR-5: firms, LLPs, AOPs, BOIs. ITR-6: companies. ITR-7: trusts, political parties. The wizard below walks you through up to 8 questions for individuals and HUF.

ITR Form Wizard

Answer up to 8 questions to find the right ITR form. The wizard adapts based on your answers — irrelevant questions are skipped. Designed for individuals and HUFs. For firms, LLPs, companies, or trusts, use the reference panel below.

All ITR Forms — Quick Reference

Complete eligibility framework for all seven ITR forms applicable to AY 2026-27 (FY 2025-26 income), notified by CBDT on 30 March 2026 under the Income Tax Act 1961. Sources: Income Tax Department, ICAI guidance, Ministry of Finance notifications, and PIB press releases.

FormWho FilesKey ConditionsCommon Disqualifiers
ITR-1
Sahaj
Resident individuals Salary, pension, up to 2 house properties, other sources, LTCG ≤ ₹1.25L from listed equity. Total income < ₹50L. NRI, RNOR, capital gains > ₹1.25L, business income, foreign assets, director, unlisted shares
ITR-2 Individuals & HUF Anyone NOT eligible for ITR-1, but with no business or professional income. Includes NRIs, RNOR, capital gains, foreign assets, directors, unlisted shareholders. Any business or professional income (use ITR-3 or ITR-4 instead)
ITR-3 Individuals & HUF Business or professional income with regular books. Includes F&O, intraday, partnership share, crypto as business. Companies, firms, trusts (use ITR-5/6/7)
ITR-4
Sugam
Individuals, HUF, partnership firms (not LLP) Presumptive taxation under Section 44AD (turnover ≤ ₹3 cr if cash ≤ 5%, else ₹2 cr), Section 44ADA (gross receipts ≤ ₹75L specified profession), or Section 44AE (transport). Income > ₹50L, capital gains, foreign assets, director, more than one house property
† Note on HUF eligibility: Per Sec 44ADA(1) of the Income Tax Act, HUFs are NOT eligible for Section 44ADA (specified profession) — that section is restricted to Resident Individuals and Partnership Firms (other than LLP). HUFs ARE eligible for Sec 44AD (small business) and Sec 44AE (transport) presumptive schemes via ITR-4.
ITR-5 Firms, LLPs, AOPs, BOIs, local authorities Partnership firms (registered/unregistered), LLPs, association of persons, body of individuals, artificial juridical persons, local authorities, cooperative societies (some). Companies (use ITR-6), trusts (use ITR-7), individuals/HUF
ITR-6 Companies All companies (private, public, OPC) NOT claiming exemption under Section 11. Mandatory audit and electronic filing with digital signature. Companies claiming Section 11 exemption (use ITR-7), individuals, firms
ITR-7 Charitable trusts, political parties, research institutions Entities required to file returns under Sections 139(4A)/(4B)/(4C)/(4D) — charitable trusts under Section 11, political parties under Section 13A, scientific research associations, news agencies. Regular companies, firms, individuals

Key Changes for AY 2026-27

CBDT notified the AY 2026-27 ITR forms on 30 March 2026 under the Income Tax Act 1961. Even though the new Income Tax Act 2025 came into effect on 1 April 2026, FY 2025-26 income continues to be governed by the old Act because the income relates to a tax year beginning before April 2026.

ITR-1 Expanded

  • Two house properties allowed — earlier limited to one. Salaried taxpayers with one self-occupied and one let-out property can now use the simpler ITR-1.
  • LTCG up to ₹1.25L from listed equity (Section 112A) allowed in ITR-1 — earlier forced switch to ITR-2.

ITR-2 Simplifications

  • Single-schedule capital gains reporting — the dual reporting (pre/post 23 July 2024) was a one-time AY 2025-26 requirement. For FY 2025-26 there's no mid-year rate change, so capital gains are reported in a single schedule.
  • Granular Section 80C disclosure — taxpayers must break down which specific 80C investments are claimed.
  • HRA component breakdown under Section 10(13A) for accuracy.
  • TDS section reporting — new field requires specifying the TDS section under which tax was deducted, helping reconciliation with Form 26AS.

ITR-3 Deadline Extended

Finance Act 2026 extended the ITR-3 deadline for non-audit business and professional income from 31 July to 31 August 2026. Tax audit cases continue at 31 October 2026.

ITR-4 New Disclosures

New column under Financial Particulars requires presumptive taxpayers (Section 44AD/44ADA/44AE) to disclose investments made during the year — improving income-investment reconciliation.

Two-tab portal: The income tax e-filing portal now shows two tabs — Tab 1 for "Income Tax Act 1961" (use this for AY 2026-27 / FY 2025-26 returns) and Tab 2 for "Income Tax Act 2025 / Tax Year 2026-27" (will be used for FY 2026-27 returns from July 2027 onwards). Always select the right tab.

Need Help Picking the Right ITR Form?

Patron's CAs assess your sources of income, residential status and special situations, then file the correct ITR form with all schedules. We support Pune, Mumbai, Delhi, Gurugram and pan-India clients.

Edge Cases — When to Get CA Help

Several scenarios go beyond automated wizard logic. The wizard above flags these but here's the full list of situations where CA consultation is strongly recommended.

Crypto / Virtual Digital Assets (VDA)

Crypto income is taxed under Section 115BBH at flat 30% with no set-off of losses. Classification as personal investment vs business income changes the form (ITR-2 vs ITR-3) and affects loss treatment. Schedule VDA disclosure is mandatory. Foreign exchange compliance under FEMA may also apply.

F&O and Intraday Trading

F&O is non-speculative business income, intraday is speculative business income — both require ITR-3 regardless of profit/loss. Tax audit under Section 44AB may apply if turnover (calculated using ICAI guidelines) exceeds thresholds. Many traders mistakenly file ITR-2 thinking these are capital gains.

Foreign Company ESOPs / RSUs

Indian employees of MNCs receiving foreign company stock face Schedule FA disclosure under capital gains rules, plus DTAA foreign tax credit claims via Form 67. Non-disclosure triggers Black Money Act penalties up to ₹10L per year. ITR-2 or ITR-3 with full Schedule FA is mandatory.

Director with Multiple Companies

Holding directorship in any company at any time during FY 2025-26 disqualifies you from ITR-1. Companies with strike-off, disqualification, or DIN issues add layers of complexity. ITR-2 if salary-only; ITR-3 if combined with business income.

RNOR Status Transitions

Returning NRIs in their first 2-3 years as RNOR have unique global income exclusions and need careful residency status determination under Section 6. ITR-2 is generally appropriate but the residential status declaration and foreign asset disclosures need expert handling.

Partner in Firm + Individual Income

If you're a partner receiving share of profit from a firm AND have your own salary or other income, ITR-3 is required. The firm's ITR-5 reports its own profit; your ITR-3 reports your share, salary from firm, interest, and personal income separately.

Common defective return notices: ITR-1 filed with capital gains > ₹1.25L; ITR-2 filed with F&O turnover; ITR-4 filed with income > ₹50L; missing Schedule FA disclosure for foreign assets; presumptive 44AD without meeting cash-receipt test. Each of these triggers a Section 139(9) notice with 15-day cure window.

Frequently Asked Questions

The right ITR form depends on your taxpayer type, total income, and income sources. ITR-1 (Sahaj) is for resident individuals with salary, one or two house properties, and total income below ₹50 lakh. ITR-2 is for individuals with capital gains or foreign assets. ITR-3 is for business or professional income. ITR-4 (Sugam) is for presumptive taxation under Sections 44AD/44ADA/44AE. ITR-5 is for firms, LLPs, BOIs. ITR-6 is for companies. ITR-7 is for trusts and political parties.
From AY 2026-27, ITR-1 allows reporting of long-term capital gains under Section 112A up to ₹1.25 lakh from listed equity. If your LTCG is below ₹1.25 lakh and you have no other capital gains, you can stay in ITR-1. However, if you have STCG, capital gains above ₹1.25 lakh, capital gains from property, debt mutual funds, or unlisted shares, you must file ITR-2. The expansion in AY 2026-27 helps many salaried taxpayers stay in the simpler form.
ITR-1 is for simple cases — resident individuals with salary, pension, one or two house properties, and small LTCG up to ₹1.25 lakh. Total income must be under ₹50 lakh. ITR-2 covers everything ITR-1 does plus capital gains above ₹1.25 lakh, foreign assets or income, RNOR or non-resident status, agricultural income above ₹5,000, directorship in companies, and ownership of unlisted equity shares. Choose ITR-2 whenever any ITR-1 disqualifier applies.
ITR-3 is for individuals and HUFs with income from business or profession under regular accounting — books of accounts and tax audit as required. ITR-4 (Sugam) is for those who opt for presumptive taxation under Section 44AD (small businesses), Section 44ADA (specified professionals), or Section 44AE (transport operators). ITR-4 has simpler disclosures but turnover limits — ₹3 crore for 44AD if cash receipts are below 5%, ₹75 lakh for 44ADA professionals.
Yes if eligible. A freelancer in a specified profession (legal, medical, engineering, accountancy, technical consultancy, IT, architecture, interior design, or any notified profession) with gross receipts up to ₹75 lakh can opt for Section 44ADA presumptive taxation and file ITR-4. The deemed profit is 50% of gross receipts. If the freelancer wants to claim actual expenses or has receipts above ₹75 lakh, they must file ITR-3 with regular books of accounts.
Crypto and Virtual Digital Asset (VDA) income is taxed under Section 115BBH at a flat 30% rate plus 4% cess. You must file ITR-2 if you have only personal crypto investments, or ITR-3 if you treat crypto as business income or have other business income alongside. Schedule VDA disclosure is mandatory in both cases. Crypto cases involve complex issues — set-off restrictions, classification disputes, foreign exchange compliance — so CA consultation is strongly recommended.
F&O (futures and options) trading is treated as non-speculative business income and requires ITR-3, regardless of volume. Intraday equity trading is treated as speculative business income and also requires ITR-3. You cannot file ITR-2 if you have any F&O or intraday turnover, even if it is loss-making. Tax audit under Section 44AB may apply if turnover exceeds ₹10 crore (with digital transactions above 95%) or ₹2 crore otherwise.
If you are a director in any company at any time during FY 2025-26, you cannot file ITR-1. You must file ITR-2 if you have only salary plus directorship, or ITR-3 if you also have business or professional income. The same rule applies if you held unlisted equity shares at any time during the year. Schedule AL (Assets and Liabilities) disclosure becomes mandatory if total income exceeds ₹50 lakh, requiring detailed asset reporting.
Partnership firms, LLPs, AOPs (Association of Persons), BOIs (Body of Individuals), and local authorities file ITR-5. Companies (private and public) file ITR-6, except those claiming exemption under Section 11. Charitable trusts, political parties, research institutions, and entities claiming exemption under Sections 11/12/13 file ITR-7. Tax audit, transfer pricing audit, and statutory due dates differ from individual filings — engage a CA for these forms.
Filing the wrong ITR form leads to a defective return notice under Section 139(9) of the Income Tax Act. You have 15 days from notice to rectify, otherwise the return is treated as invalid. Common errors include filing ITR-1 when you have capital gains over ₹1.25 lakh, filing ITR-2 when you have F&O income, or filing ITR-4 without meeting presumptive taxation conditions. Always cross-check eligibility before submission to avoid scrutiny and refund delays.
Yes. For AY 2026-27, CBDT expanded ITR-1 to allow income from up to two house properties (previously only one). LTCG up to ₹1.25 lakh from listed equity under Section 112A is also allowed in ITR-1, removing the earlier requirement to switch to ITR-2 for small equity gains. New disclosure requirements include granular Section 80C breakdown, HRA component-wise breakdown under Section 10(13A), and TDS section reporting for better Form 26AS reconciliation.
For non-audit individuals (ITR-1, ITR-2): 31 July 2026. For ITR-3 non-audit cases: 31 August 2026 (extended by Finance Act 2026). For audit cases (ITR-3 with tax audit, ITR-5, ITR-6): 31 October 2026. For transfer pricing cases: 30 November 2026. ITR-7 follows the audit deadline. Belated and revised returns under the old Income Tax Act 1961 can be filed up to 31 December 2026 for AY 2026-27. ITR-U is allowed up to 31 March 2031.
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