Which ITR form should you file?

Updated 11 October 2026

Most salaried people and pensioners with interest income file ITR-1 (Sahaj). If you have capital gains beyond a small limit, foreign assets or income above ₹50 lakh, you need ITR-2. Business or professional income takes you to ITR-3, or to ITR-4 (Sugam) if you use the presumptive scheme. The conditions below are those for returns of 2025-26 filed in 2026; forms for tax year 2026-27 will be notified under the 2026 Rules before the 2027 filing season.

The four forms for individuals

ITR-1: the simple form

You can use ITR-1 if you are resident and your total income is up to ₹50 lakh from:

• salary or pension;
• up to two house properties;
• other sources such as savings and FD interest, dividends and family pension;
• long-term capital gains on listed shares and equity mutual funds of up to ₹1.25 lakh, with no losses brought forward or carried forward;
• agricultural income of up to ₹5,000.

You cannot use ITR-1 if you are a company director, held unlisted shares at any time in the year, are a non-resident (or resident but not ordinarily resident), have foreign assets or signing authority in a foreign account, have income from crypto or other virtual digital assets, or have any short-term capital gains or business income.

ITR-2: salary plus investments

ITR-2 is for individuals and HUFs who have no business or professional income but fall outside ITR-1. Common reasons are short-term capital gains on shares or funds, long-term gains above ₹1.25 lakh, selling property, owning more than two houses, income above ₹50 lakh, being a director, holding foreign assets, or being a non-resident. See capital gains tax.

ITR-3: business and profession

ITR-3 is for individuals and HUFs who earn income from business or profession and keep regular accounts, rather than using the presumptive scheme. Futures and options trading and intraday share trading are treated as business, so traders usually file ITR-3 even if they also have a salary. Partners in a firm also use it for their share of profit and interest.

ITR-4: presumptive income

ITR-4 suits small businesses and professionals who declare income on a presumptive basis: a fixed share of turnover or receipts treated as profit, with no need to keep detailed books. For example, eligible professionals can declare 50% of gross receipts as income. It is for residents with total income up to ₹50 lakh.

Other forms

ITR-5 is for firms, LLPs and associations, ITR-6 for companies and ITR-7 for trusts and institutions. Individuals rarely need these.

Worked example

Common situations

The portal suggests a form based on your answers, but the choice is yours. Once you know your form, follow how to file your ITR.