Income Tax

Which ITR Form Is Applicable? ITR-1 to ITR-7 Explained for AY 2026-27

A simple decision guide for selecting the correct ITR form: ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 or ITR-7, with examples for salaried persons, capital gains, business income, firms, LLPs and companies.

By P K Patel & AssociatesPublished 27 Jul 20269 min read

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Quick answer

The applicable ITR form depends on taxpayer type, residential status, income heads, total income, capital gains, business or profession income, foreign assets, presumptive taxation, company status and special filing obligations.

For AY 2026-27, income earned during FY 2025-26 is filed under the Income-tax Act, 1961. The Income Tax Department's ITR FAQ says taxpayers should select AY 2026-27 while filing the return for FY 2025-26 income.

Official reference: Income Tax Department ITR FAQs.

One-page ITR form selector

Comparison table Scroll horizontally on a small screen

ITR form	Broad applicability	Common examples
ITR-1 Sahaj	resident individual satisfying specified simple-income conditions	salary, pension, up to two house properties, specified other sources, agricultural income up to INR 5,000, limited 112A LTCG within permitted limit
ITR-2	individual or HUF not eligible for ITR-1 and having no business or profession income	capital gains, foreign assets, NRI/RNOR, more complex salary or house property cases
ITR-3	individual or HUF with business or profession income, where ITR-4 is not suitable	proprietor with books, partner remuneration or interest, professional not under presumptive scheme
ITR-4 Sugam	resident individual, HUF or firm other than LLP with presumptive business/profession income under sections 44AD, 44ADA or 44AE and satisfying limits	small eligible business or professional opting presumptive taxation
ITR-5	firms, LLPs, AOPs, BOIs and other specified non-company persons not filing ITR-7	partnership firm, LLP, AOP, BOI, certain trusts or estates depending on facts
ITR-6	companies other than companies claiming exemption under section 11	private limited company, public company, most domestic companies
ITR-7	persons required to file under sections 139(4A), 139(4B), 139(4C) or 139(4D)	charitable/religious trusts, political parties, certain institutions, universities or research associations

This table is only a first filter. Final form selection should be based on the notified form instructions and facts.

ITR-1: when it may apply

ITR-1 can be used only by eligible resident individuals with limited income profile.

For AY 2026-27, the official ITR-1 manual states that ITR-1 can be filed by a resident individual whose total income does not exceed INR 50 lakh and whose income is from permitted sources such as salary, two house properties, family pension, agricultural income up to INR 5,000, long-term capital gain under section 112A up to INR 1.25 lakh and specified other sources.

Official reference: ITR-1 User Manual.

ITR-1 should not be used where

Do not use ITR-1 where any disqualification applies. Important examples include:

RNOR or NRI status
total income exceeding INR 50 lakh
agricultural income exceeding INR 5,000
short-term capital gains
long-term capital gain under section 112A exceeding INR 1.25 lakh
business or profession income
company directorship
holding unlisted equity shares
tax deduction under section 194N
deferred tax on ESOP from eligible startup
more than two house properties

ITR-2: when it may apply

ITR-2 is generally for individuals and HUFs who are not eligible for ITR-1 and do not have income under Profits and Gains of Business or Profession.

Common ITR-2 cases:

salary plus capital gains beyond ITR-1 scope
more complex capital gains
foreign assets or foreign income disclosure
NRI or RNOR individual
more than two house properties
income above INR 50 lakh without business income
director in a company but no business/profession income
unlisted equity share disclosure but no business/profession income

If there is business or profession income, ITR-2 is normally not the correct form.

ITR-3: when it may apply

ITR-3 is generally used by individuals and HUFs having income under Profits and Gains of Business or Profession, where ITR-4 is not applicable or not chosen.

Common ITR-3 cases:

proprietor maintaining books of account
professional not filing under presumptive taxation
trader or business owner not eligible for ITR-4
partner receiving remuneration or interest from firm, depending on facts
business with capital gains or other complex schedules
business requiring balance sheet and profit and loss reporting

If a taxpayer has business income but fails to complete required business schedules, the return may become defective.

ITR-4: when it may apply

ITR-4, also called Sugam, is a simplified form for eligible taxpayers using presumptive taxation.

For AY 2026-27, the official ITR-4 FAQ states that ITR-4 can be filed by a resident individual, HUF or firm other than LLP having total income not exceeding INR 50 lakh and income from business/profession computed on presumptive basis under sections 44AD, 44ADA or 44AE, along with permitted income sources.

Official reference: ITR-4 FAQs.

ITR-4 should not be used where

Important restrictions include:

RNOR or NRI status
total income exceeding INR 50 lakh
short-term capital gains
long-term capital gain under section 112A exceeding INR 1.25 lakh
agricultural income exceeding INR 5,000
company directorship
more than two house properties
lottery or racehorse income
specified special-rate income
unlisted equity shares
deferred ESOP tax from eligible startup
not satisfying ITR-4 conditions

Also remember: ITR-4 is optional. If the taxpayer is eligible for presumptive taxation, it may be used; otherwise ITR-3 may be required for individual/HUF business income.

ITR-5: when it may apply

ITR-5 is generally for non-company taxpayers other than individuals and HUFs, subject to exclusions.

Common examples:

partnership firms
LLPs
AOPs
BOIs
artificial juridical persons
estates of deceased or insolvent persons
business trusts and investment funds where applicable

Do not use ITR-5 where ITR-7 applies because of special filing obligations under sections such as 139(4A) to 139(4D).

ITR-6: when it may apply

ITR-6 applies to companies other than companies claiming exemption under section 11.

The Income Tax Department's domestic company page states that ITR-6 is applicable for companies other than those claiming exemption under section 11.

Official reference: Domestic Company for AY 2026-27.

ITR-7: when it may apply

ITR-7 is for persons, including companies, required to file return under sections 139(4A), 139(4B), 139(4C) or 139(4D).

This generally covers specific categories such as:

charitable or religious trusts
political parties
research associations
news agencies
universities, colleges and other institutions referred to in the relevant provisions

ITR-7 is a special-purpose form. It should not be selected casually.

Common scenarios

Comparison table Scroll horizontally on a small screen

Scenario	Likely form
resident salaried person with income below INR 50 lakh, bank interest and one or two house properties	ITR-1 if all conditions are satisfied
salaried person with short-term capital gains	ITR-2
NRI with Indian income	generally ITR-2 if no business income
resident individual with presumptive professional income under section 44ADA	ITR-4 if all conditions are satisfied
proprietor maintaining full books of account	ITR-3
LLP	generally ITR-5
private limited company	generally ITR-6
charitable trust	generally ITR-7
individual with foreign assets but no business income	generally ITR-2
individual with business income and capital gains	generally ITR-3 unless specific facts indicate otherwise

Why correct ITR form selection matters

Wrong ITR form can lead to:

defective return notice
inability to fill correct schedules
incorrect disclosure
missed loss carry-forward
mismatch with AIS or Form 26AS
processing delay
wrong tax computation
avoidable professional correction later

A practical decision sequence

Ask these questions in order:

What is the taxpayer status: individual, HUF, firm, LLP, company, trust or other person?
Is the taxpayer resident, RNOR or non-resident?
Is there business or profession income?
Is presumptive taxation being used?
Is total income above INR 50 lakh?
Are there capital gains?
Are there foreign assets or foreign income?
Is there more than two house properties?
Is there a company directorship or unlisted equity share holding?
Is the person required to file under sections 139(4A) to 139(4D)?

The answers usually identify the correct form.

Internal links

For related reading and tools:

FAQ

Can salaried individuals always use ITR-1?

No. ITR-1 is available only if all eligibility conditions are satisfied. Capital gains, foreign assets, RNOR/NRI status, company directorship, unlisted shares, business income or income above INR 50 lakh may shift the taxpayer to another form.

Can a business owner use ITR-1?

No. ITR-1 is not for business or profession income.

Can a professional use ITR-4?

A professional may use ITR-4 only if presumptive taxation under section 44ADA is applicable and all ITR-4 conditions are satisfied.

Which form does an LLP file?

An LLP generally files ITR-5, not ITR-4.

Which form does a private limited company file?

A private limited company generally files ITR-6 unless it is required to use ITR-7 because of exemption or special filing status.

Should I rely only on pre-filled form suggestions?

No. The portal wizard is useful, but final form selection should be checked against income, status, assets, schedules and applicable law.

This article is for educational purposes only. ITR applicability depends on notified forms, facts and law. Verify current Income Tax Department guidance before filing.

Source links in this article (4)

References and qualifications remain alongside the relevant explanation above.

This material is general information. Apply it to your business only after checking the relevant facts, source documents and requirements.