About the ITR form ecosystem
The Income Tax Department of India publishes seven return forms (ITR-1 to ITR-7) covering every taxpayer category. The right form depends on the assessee's status (individual, HUF, firm, company, trust), the source mix of income (salary, business, capital gains, foreign), the income threshold (above or below 50 lakh rupees), and whether business income is computed normally or under the presumptive scheme. Filing the wrong form invalidates the return under Section 139(9) and forces a refile with potential late-filing fees of up to 5,000 rupees.
The selector above walks you through six yes/no decision points in the order the department uses internally. Each answer either narrows to the next branch or terminates with a recommendation. The logic reflects the rules notified in CBDT Notification 19/2024 dated 1 April 2024 for AY 2024-25 onwards, with the same structure carried into AY 2026-27.
How the selection logic works
if status == "company" : ITR-6
if status == "firm/LLP" : ITR-5
if status == "trust/institution" : ITR-7
# Individuals and HUFs:
if business income == yes:
if presumptive == yes and total income <= 50L : ITR-4 (Sugam)
else : ITR-3
else (no business income):
if total income > 50L : ITR-2
if capital gains == yes : ITR-2
if foreign income/assets == yes : ITR-2
if > 1 house property : ITR-2
else : ITR-1 (Sahaj)
The flow follows the exclusion list of each form. ITR-1 has the longest exclusion list and is therefore the last branch reached; ITR-2 catches everything that fails ITR-1 but still has no business income.
Worked example
A 35-year-old salaried employee in Bengaluru earns 22 lakh rupees in FY 2025-26 from salary alone, has interest income of 18,000 rupees, owns the flat she lives in, and sold listed equity shares with a long-term capital gain of 1.4 lakh rupees.
- Status: individual, resident.
- Business income: no.
- Total income: ~23.4 lakh rupees, under 50 lakh rupees so the threshold disqualifier does not yet apply.
- Capital gains: yes (1.4 lakh rupees long-term equity gain).
- Selection: capital gains immediately disqualify ITR-1. The form drops to ITR-2.
ITR form reference (AY 2026-27)
| Form | For | Income cap | Common use |
|---|---|---|---|
| ITR-1 Sahaj | Resident individual, salary + 1 house + other sources | 50 lakh rupees | Pure salary case |
| ITR-2 | Individuals/HUFs without business income | None | Capital gains, foreign income, 2+ houses |
| ITR-3 | Business/professional income (non-presumptive) | None | Consultant on books, partner in firm |
| ITR-4 Sugam | Presumptive income 44AD/44ADA/44AE | 50 lakh rupees | Freelancer with 50 percent declared profit |
| ITR-5 | Firms, LLPs, AOPs, BOIs | None | Partnership and LLP returns |
| ITR-6 | Companies (not claiming Section 11 exemption) | None | Domestic companies |
| ITR-7 | Trusts, political parties, research institutions | None | Section 11/12/13A/35 entities |
Common pitfalls
- Capital gains on ITR-1. The single most common reject reason. Any LTCG or STCG, however small, disqualifies ITR-1.
- Foreign assets not declared. ESOPs in a US parent, foreign bank accounts, or directorships abroad force ITR-2 even at low income levels. Hiding them invites Section 271 penalties up to 10 lakh rupees per Black Money Act.
- Presumptive opt-in or out cycle. ITR-4 users who exit presumptive must stay out for 5 consecutive years (Section 44AD(4)). One year of ITR-3 forces ITR-3 for the next four years.
- Two houses, one rental. Self-occupied and rented houses both count for the "more than one house property" disqualifier. ITR-1 is single-house only.
- HUF on ITR-1. ITR-1 is restricted to individuals; HUFs always file ITR-2 at minimum even with simple salary-like rental income.
- Regime selection. Forgetting to tick the regime option defaults you to the new regime since AY 2024-25, which may not be optimal if you have heavy 80C and HRA deductions.
Related tools
Frequently asked questions
Which ITR form should a salaried person file in AY 2026-27?
Most salaried individuals with income up to 50 lakh rupees from salary, one house property, and other sources (interest, dividend) should file ITR-1 (Sahaj). Move to ITR-2 if you have capital gains, foreign income or foreign assets, agricultural income above 5,000 rupees, or more than one house property. The selector on this page walks you through the disqualifiers in order.
When should I use ITR-4 Sugam?
ITR-4 (Sugam) is for individuals, HUFs, and resident firms (other than LLPs) with presumptive income under Section 44AD (business), 44ADA (profession), or 44AE (goods carriage). Your total income must not exceed 50 lakh rupees, business turnover must be under 2 crore rupees (or 3 crore rupees with 95 percent or more digital receipts), and professional gross receipts must be under 50 lakh rupees (or 75 lakh rupees with 95 percent digital receipts).
What is the difference between ITR-1 and ITR-2?
ITR-1 is the simplest form, restricted to resident individuals with salary, one house, and other-source income up to 50 lakh rupees. ITR-2 covers non-residents, those with capital gains, foreign income or assets, more than one house property, agricultural income above 5,000 rupees, or income above 50 lakh rupees from non-business sources. If any one disqualifier from ITR-1 applies, you move to ITR-2.
Can I switch between the old and new tax regimes when filing?
Yes for salaried individuals without business income (ITR-1, ITR-2) you can choose the regime every year by ticking the relevant box. Taxpayers with business or professional income (ITR-3, ITR-4) can opt out of the new regime once, with Form 10-IEA, but can re-enter the new regime only once thereafter. The new regime has been the default since AY 2024-25 (FY 2023-24).
What is the due date for ITR filing in India?
For individuals and HUFs not requiring audit, the due date is 31 July of the assessment year (so 31 July 2026 for AY 2026-27 covering FY 2025-26). For taxpayers whose accounts require audit, the deadline is 31 October. Belated returns can be filed by 31 December with late-filing fees under Section 234F, after which the return cannot be filed for that year.