Which ITR Form?
Answer a few questions, get the right ITR form and the rule behind it
Reviewed by the PaisaTools Editorial Team · Last reviewed September 2026 · Applicable to FY 2026-27 (AY 2027-28)
How to use: Tick the income types that apply to you this year — the correct ITR form and the rule behind it update instantly.
ExampleSalary + a few F&O trades → ITR-3 (F&O is business income, not capital gains)
Your income this year (FY 2025-26)
Answer what applies. The form updates as you go — nothing is sent anywhere.
Salary or pension income?
Includes your employer's Form 16 income.
Business or professional income?
Freelancing, consulting, a shop, YouTube/creator income, commissions.
F&O, intraday or other derivatives trading?
Even a few trades count — this is treated as business income, not capital gains.
Declaring under the presumptive scheme (44AD / 44ADA / 44AE)?
The simplified scheme where you declare a flat % of turnover as profit.
Any capital gains this year?
Selling shares, mutual funds, property or gold — even one redemption counts.
Crypto / virtual digital asset income?
Needs Schedule VDA — 30% tax + 1% TDS.
More than two house properties?
Two are allowed in ITR-1 and ITR-4 from AY 2026-27 — it used to be one.
Carrying a loss forward, or setting off a past one?
Any brought-forward or carried-forward loss — capital or house property — rules out ITR-1 and ITR-4.
Foreign income, foreign assets or a foreign bank account?
Company director, or holding unlisted shares?
Includes ESOPs in an unlisted startup.
Agricultural income above ₹5,000?
Total income above ₹50 lakh?
Resident in India for tax purposes?
NRIs and RNORs cannot use ITR-1 or ITR-4.
Based on a simple salaried year
ITR-1
File ITR-1 (Sahaj) — the simplest return
Your income is salary/pension, up to two house properties and normal 'other sources' interest — all inside ITR-1.
You're a resident, under ₹50 lakh, with no foreign assets or business income.
ITR-1 (Sahaj) is the simplest return. A short-term gain, a property sale, or a long-term equity gain above ₹1.25 lakh would move you to ITR-2.
Every answer stays in your browser — nothing is uploaded. This is guidance, not a filing certificate: confirm the form on the income-tax e-filing portal before you submit.
India has four ITR forms for individuals and HUFs, and which one you must use isn't about how much you earn — it's about where the income comes from. That's why a simple number can't answer it, and why so many people pick wrong.
ITR-1 (Sahaj) is the simplest: resident, income up to ₹50 lakh, from salary/pension, up to two house properties and ordinary interest. ITR-2 is for individuals with no business income who fall outside that — larger capital gains, more properties, foreign assets. ITR-3 covers any business or professional income, including F&O and intraday trading. ITR-4 (Sugam) is the simplified return for presumptive business/professional income under 44AD, 44ADA or 44AE.
Two of these gates moved for AY 2026-27, and both work in your favour: ITR-1 and ITR-4 now stretch to two house properties instead of one, and they can carry a small long-term equity gain that used to force everyone into ITR-2. The costly mistakes are still the quiet ones: a loss you want to carry forward rules out the simple forms entirely, and a handful of F&O trades pushes you all the way to ITR-3. Filing a fuller form than needed is never penalised — filing too simple a one is what triggers a defect notice.
Eligibility follows the ITR form rules notified for AY 2026-27 (FY 2025-26) by the Income Tax Department: the ITR-1/ITR-4 gates (residency, the ₹50 lakh ceiling, the two-house-property limit and the Section 112A long-term-gain allowance both widened for AY 2026-27, the bar on carrying losses forward, the ₹5,000 agricultural-income limit, exclusion of directors and unlisted shareholdings), the treatment of F&O and intraday as business income, and Schedule VDA for virtual digital assets. This return is still governed by the Income-tax Act 1961 — the Income-tax Act 2025 applies from FY 2026-27 onwards. Where a rule has a genuine edge case, this tool routes to the fuller form and says so. It is guidance, not a filing certificate — confirm on the e-filing portal before submitting.
- Guidance for common cases; unusual income combinations may need professional confirmation.
- Form rules can change each assessment year.
- What happens if I file the wrong ITR form?
- The return can be treated as defective under Section 139(9) (section 263(7) of the new Income-tax Act, 2025). The department issues a notice giving you a window to correct and re-file; if you don't respond in time, the return can be treated as never filed — which can mean late-filing fees and loss of certain carry-forward benefits.
- Which ITR form should a salaried person file?
- Most salaried people with up to two houses and normal interest income file ITR-1 (Sahaj). ITR-1 is ruled out by foreign assets, unlisted shares, a directorship, agricultural income above ₹5,000, total income above ₹50 lakh, any loss carried forward, or capital gains beyond the small long-term equity allowance new for AY 2026-27 — then it's ITR-2.
- I trade F&O or intraday. Which ITR form?
- ITR-3. F&O and intraday are treated as business income (intraday being speculative business), not capital gains — so ITR-1 and ITR-2 are both out. This is one of the most common filing mistakes among retail traders.
- Do I need a different form just for selling some mutual funds?
- Not always any more. From AY 2026-27 a long-term equity or equity mutual-fund gain under Section 112A (section 198 of the new Income-tax Act, 2025) can stay inside ITR-1, within a ceiling and only if you carry no loss forward. A short-term gain, a property sale, or a larger long-term gain still moves you to ITR-2 — the checker applies the exact limit to your answers.
- Which ITR form do freelancers file?
- ITR-4 (Sugam) if you declare income under the presumptive scheme (44ADA [section 58 of the new Income-tax Act, 2025] for professionals) and stay within its limits — resident, total income up to ₹50 lakh, up to two house properties, no loss carried forward, and no capital gains beyond the small long-term equity allowance. Otherwise ITR-3.
- Where do I report crypto income?
- Crypto and other virtual digital assets are reported in Schedule VDA, which exists in ITR-2 and ITR-3 — not in ITR-1. Gains are taxed at 30% plus cess, with 1% TDS on transfers.
Related guides
- ITR Filing 2026: deadline, documents & which regime to pickMissed the 31 July deadline? What a belated FY 2025-26 return costs you, the documents to keep ready, the right ITR form, and the regime decision.
- Old vs New Tax Regime — which one wins for you?A side-by-side walkthrough of the FY 2026-27 slabs, with the break-even where the regimes flip.
- How to save tax on your salary (FY 2026-27)The deductions that actually move the needle, in priority order — and how to decide between the old and new regime first.