How-to · Tax
Which ITR form to file for AY 2026-27: ITR-1, 2, 3 or 4
A decision guide for AY 2026-27: who can use ITR-1 Sahaj, when ITR-2 is required, when ITR-4 Sugam is optional, and when only ITR-3 works, plus how a wrong form becomes a defective return and how to confirm the form on official pages.
In this guide
For AY 2026-27, ITR-1 is for a resident individual other than not ordinarily resident, with total income up to ₹50 lakh from salary, house property, other sources, agricultural income up to ₹5,000, and section 112A gains up to ₹1.25 lakh. ITR-2 covers individuals and HUFs with no business income who cannot use ITR-1. ITR-4 is the optional presumptive form. Remaining business cases use ITR-3. Confirm on the official applicability page before you file.
Why the form comes first
The ITR form is not a preference. It is an eligibility test. The portal will let you open a form you should not use, and the defect notice arrives later. For AY 2026-27 that test is set by the notified ITR forms and restated on the Income Tax Department applicability pages. Those pages carry a disclaimer: they are an overview. The Act, the Rules, and the notified form heading are what you match against.
This guide covers ITR-1 to ITR-4, the forms used by individuals, HUFs and firms other than LLPs. Companies, trusts and other entities use different forms and are outside this page.
The four forms in one view
| Form | Who can use it | What knocks you out |
|---|---|---|
| ITR-1 (Sahaj) | Resident individual other than not ordinarily resident. Total income up to ₹50 lakh from salary or pension, house property, other sources, agricultural income up to ₹5,000, and long-term capital gains under section 112A up to ₹1.25 lakh. | HUF status, director, unlisted shares, short-term capital gains, section 112A gains above ₹1.25 lakh, foreign asset or foreign income, tax deducted under section 194N, deferred ESOP tax, or a loss to carry forward. |
| ITR-2 | Individual or HUF with income under any head other than profits and gains of business or profession, who cannot use ITR-1. | Any business or professional income. |
| ITR-4 (Sugam) | Resident individual other than not ordinarily resident, resident HUF, or resident firm other than an LLP, with presumptive income under section 44AD, 44ADA or 44AE, and total income up to ₹50 lakh. | Director, unlisted shares, short-term capital gains, section 112A gains above ₹1.25 lakh, foreign asset or income, deferred ESOP tax, a loss to carry forward, or income chargeable at a special rate. The form is optional even when you qualify. |
| ITR-3 | Individual or HUF with income under any head, including business or profession, who cannot use ITR-1, ITR-2 or ITR-4. | None of the simplified forms fit, or you choose not to use ITR-4. |
The official salaried applicability page, last reviewed 9 July 2026, lists one house property for ITR-1. The business applicability page lists two house properties for ITR-4. If a help page and the notified form heading disagree, use the form heading for the year you are filing.
Start with ITR-1, then step up
Most salaried residents want ITR-1. Walk the exclusion list before you open it.
- Confirm you are a resident individual other than not ordinarily resident. A non-resident and a resident but not ordinarily resident cannot use ITR-1.
- Confirm total income is within ₹50 lakh, leaving out long-term capital gains under section 112A up to ₹1.25 lakh.
- Confirm the heads of income fit: salary or pension, house property, other sources such as interest, family pension or dividend, agricultural income up to ₹5,000, and section 112A gains up to ₹1.25 lakh. Short-term capital gains take you out.
- Confirm none of the status exclusions apply: director of a company, unlisted equity shares held at any time in the year, a foreign asset or a signing authority abroad, income from a source outside India, tax deducted under section 194N, deferred tax on ESOPs, or a brought-forward or carry-forward loss under any head.
Fail any of those tests and you are in ITR-2, unless you also have business or professional income. Capital gains beyond the 112A pocket, more than one house if the form heading does not allow it, or a foreign bank account are the usual reasons a salaried filer lands in ITR-2.
When ITR-4 is optional, not required
ITR-4 is a simplified form for presumptive income under section 44AD, 44ADA or 44AE. The official page says it is not mandatory. You may still file ITR-3 and compute the business under the regular provisions, or under the presumptive sections inside ITR-3, if that is how the year actually works.
Use ITR-4 only when all of this is true:
- You are a resident individual other than not ordinarily resident, a resident HUF, or a resident firm that is not an LLP.
- Business or professional income is computed on a presumptive basis under section 44AD, 44ADA or 44AE.
- Total income is within ₹50 lakh, and the same family of exclusions that block ITR-1 do not apply.
The business applicability page also blocks ITR-4 where there is income from a retirement benefit account under section 89A, or any income chargeable at a special rate. If you are a partner receiving remuneration or interest from a firm, or you need a tax audit, do not force ITR-4. That is an ITR-3 year.
When only ITR-3 works
ITR-3 is the residual individual and HUF form once ITR-1, ITR-2 and ITR-4 are off the table. It is the form for a business or profession that is not being declared on ITR-4, and for anyone who is eligible for ITR-4 but chooses not to use it.
Typical ITR-3 cases: a proprietor maintaining books, a professional outside the 44ADA limits, a partner in a firm, a person who opted out of presumptive taxation, or a person who needs to report a tax audit under section 44AB. The tax audit report due date is a separate clock from the ITR due date. Do not pick ITR-4 to dodge an audit that already applies.
What a wrong form does to the return
Section 139(9) lets the department treat a return as defective when it is filed in a form you are not eligible to use. You get time to cure it. If you do not, the return can be treated as invalid. That puts you back to a non-filer for that year, with the late-fee and interest consequences that follow.
The usual wrong-form patterns are a director filing ITR-1, a person with unlisted shares staying on ITR-1 because salary is the only large number, and a presumptive filer using ITR-4 after crossing a limit that the form does not accept. None of those are caught at login.
How to confirm the form on official pages
- Open the salaried applicability page or the business applicability page for AY 2026-27 and read the form you think you want, including the exclusion list.
- Open Notification No. 45/2026 and match the form heading. That heading is the legal description of who the form is for.
- If a head of income or a status flag is still unclear, read the relevant section of the Income-tax Act, 1961 rather than a forwarded chart.
The ITR filing last date is a different question from the form. Settle the form first, then the date.
Where Complied AI fits
Form eligibility is rewritten when CBDT notifies the ITR forms each year, and again if a later circular changes a validation rule. CBDT updates on Complied AI keep those notifications in one feed so you can open the source document instead of a screenshot. When you need the section behind an exclusion, read it next to the update rather than only the form name.
Practical checks
Common questions
Which ITR form should a salaried resident file for AY 2026-27?
A resident individual other than not ordinarily resident, with total income up to ₹50 lakh from salary, house property, other sources, agricultural income up to ₹5,000, and long-term capital gains under section 112A up to ₹1.25 lakh, can use ITR-1 if none of the ITR-1 exclusions apply. Directors, holders of unlisted shares, people with short-term capital gains, and anyone with a foreign asset or foreign income cannot use ITR-1 and usually move to ITR-2.
Can I file ITR-4 if I have presumptive business income?
Yes, if you are a resident individual other than not ordinarily resident, a resident HUF, or a resident firm other than an LLP, and you compute business or professional income under section 44AD, 44ADA or 44AE. ITR-4 is optional. If you are ineligible, or you choose not to use the simplified form, file ITR-3.
What happens if I file the wrong ITR form?
A return filed in a form you are not eligible to use can be treated as defective under section 139(9). If the defect is not cured in time, the return can be treated as invalid, which is the same as not having filed. Pick the form from the official applicability page, not from last year's file.
Can a Hindu undivided family file ITR-1?
No. ITR-1 is only for individuals. An HUF with no business income uses ITR-2. An HUF with presumptive income that fits ITR-4 may use that form. Other HUF business cases use ITR-3.
Publication method
How this guide was prepared
This guide is published by the Complied AI research desk. Its source list and stated position were checked against the official records shown below on 13 August 2026.
Automation, including AI, may assist research, drafting and structure. It does not replace the official record or amount to an independent professional review. Read our editorial standards and corrections policy.
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Official sources used
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