Filing
Which ITR form is yours? ITR-1 to ITR-4 in plain words
Match your income to the right return form for AY 2026-27, and avoid a defective return notice later.
By Pooja Agarwal4 min read
Choosing the wrong ITR form is one of the easiest ways to end up with a defective-return notice. The good news is that most individuals only ever need one of four forms, and the choice comes down to a few yes-or-no questions about your income. This guide covers returns for FY 2025-26, filed in AY 2026-27.
Start with three questions
- Do you have income from a business or profession (freelancing, consulting, a shop, content creation)?
- If yes, are you using presumptive taxation under 44AD, 44ADA or 44AE?
- Is your total income above ₹50 lakh, or do you have anything unusual — foreign assets, unlisted shares, a directorship, larger capital gains?
The answers point you to a form almost every time.
ITR-1 (Sahaj): the simple salaried return
ITR-1 is for resident individuals with total income up to ₹50 lakh from:
- salary or pension
- one house property
- other sources such as savings and FD interest
- agricultural income up to ₹5,000
- long-term capital gains on listed equity under section 112A up to ₹1.25 lakh
You cannot use it if you are a company director, hold unlisted shares, have foreign assets or foreign income, or have any business income. That last point catches many people: a salaried employee with a few freelance invoices is no longer an ITR-1 filer.
ITR-2: no business income, but more complexity
ITR-2 is for individuals and HUFs who do not have business or professional income but fall outside ITR-1. Typical reasons:
- capital gains beyond the ITR-1 limit, or short-term gains from selling shares or funds
- more than one house property
- foreign assets or foreign income
- total income above ₹50 lakh
- being a director or holding unlisted shares
A salaried person who actively trades mutual funds or owns two flats usually lands here.
ITR-3: business or profession with regular books
If you earn from a business or profession and compute profit the normal way — receipts minus actual expenses, with depreciation — you file ITR-3. This is the form for freelancers and creators who keep proper accounts, for anyone whose income does not fit the presumptive limits, and for people with business income plus capital gains or other complications. It is longer, with a balance sheet and profit-and-loss sections, so it pays to keep tidy records through the year.
ITR-4 (Sugam): presumptive income
ITR-4 is for resident individuals, HUFs and firms (not LLPs) who declare income on a presumptive basis under 44AD (small businesses), 44ADA (specified professionals) or 44AE (goods carriages), with total income up to ₹50 lakh. Like ITR-1, it allows long-term gains under 112A up to ₹1.25 lakh. It is the natural home for a salaried person with a side consulting practice declared under 44ADA, or a full-time freelancer within the presumptive limits.
Quick reference
| Your situation | Form |
|---|---|
| Salary + FD interest, income under ₹50 lakh | ITR-1 |
| Salary + share or fund sales with short-term gains | ITR-2 |
| Salary + two house properties | ITR-2 |
| Freelancer using 44ADA, income under ₹50 lakh | ITR-4 |
| Freelancer or creator with regular books | ITR-3 |
| Business income + foreign assets | ITR-3 |
Deadlines and practical tips for AY 2026-27
Budget 2026 changed the calendar. ITR-1 and ITR-2 were due by 31 July 2026. ITR-3 and ITR-4 filers who do not need an audit have until 31 August 2026, and audit cases until 31 October 2026. If you missed your date, a belated return can still be filed by 31 December 2026, with a late fee under section 234F of ₹5,000 (₹1,000 if total income is ₹5 lakh or less). Remember that a later filing date never pushes back the date for paying tax — interest keeps running on unpaid amounts.
- Pre-fill on the e-filing portal suggests a form, but it only knows what is in your AIS. If you have income it has not picked up, choose the form yourself.
- When in doubt between two forms, pick the more comprehensive one. Filing ITR-2 when ITR-1 would do is harmless; the reverse is not.
- Freelancers who opted out of the new regime need to have filed Form 10-IEA before the due date — check this before you start the return.
Form names and numbering may change for returns filed under the Income-tax Act, 2025, which applies from the 2026-27 tax year. The principles above should still guide you.
General information, not tax advice. Rules change, so check the latest rules or speak to a CA before you act.