Which ITR Form Should I File for AY 2027-28?

Quick answer

Most salaried people and pensioners with income up to ₹50 lakh file ITR-1 (Sahaj). Add capital gains beyond ₹1.25 lakh of equity LTCG, income above ₹50 lakh, foreign assets or a directorship and you need ITR-2. Business or professional income on regular books, including F&O and intraday trading, needs ITR-3. Small businesses and professionals using presumptive income under 44AD or 44ADA file ITR-4 (Sugam).

How to use this ITR form finder

The tool asks six questions. Answer them for the financial year whose return you are filing, not for today. If you are filing for FY 2025-26, think about what happened between 1 April 2025 and 31 March 2026.

1. Are you a resident of India this year? Choose "Yes, resident" if you were in India long enough to be a resident and ordinarily resident. Choose "No" if you are an NRI or a resident but not ordinarily resident (RNOR). ITR-1 and ITR-4 are closed to both these groups.
2. Total income for the year — up to ₹50 lakh or more than ₹50 lakh. Count all income before deductions: salary, rent, interest, business profit and gains.
3. Business or professional income? Pick "None" if you have none. Pick "small, presumptive" if you declare profit under Section 44AD (business) or 44ADA (profession) without detailed books. Pick "regular books / F&O / intraday" if you keep accounts, declare actual profit, or traded futures, options or intraday shares.
4. Capital gains? "None"; or "only LTCG on shares/equity MF up to ₹1.25 lakh"; or "more than that", which also covers any short-term gain, any property sale and any crypto sale.
5. How many house properties? None, one or two; or three or more.
6. Any special items? Foreign assets or foreign income, being a director in a company, holding unlisted shares, agricultural income above ₹5,000, or a loss to carry forward. Answer "Yes" if even one applies.

You then see the form you should file, the reason in one line, a link to the matching filing service and a document list made for your answers. You can send that list to your WhatsApp so it is handy when you collect papers.

Tips for answering accurately

Total income means income before deductions like 80C. If your salary is ₹48 lakh and you also sold shares with a ₹3 lakh gain, your total is above ₹50 lakh even if 80C would bring taxable income down. Count gross figures.

House properties include every flat, house or plot with a building that you own, alone or jointly, whether you live in it, let it out or keep it vacant. A share in a jointly owned flat counts as a property for you.

Capital gains include sales you may not think about: switching between mutual fund schemes is a sale, and so is redeeming units to buy something else. Your broker's or registrar's capital gains statement lists them all.

Business income includes freelance work, consulting, tuition, YouTube or affiliate income and commission, not only a shop or factory. If money comes to you for services and you are not an employee, it is business or professional income.

How the tool decides

The forms are arranged from simple to detailed, and the rule is that the more detailed form wins whenever more than one situation applies. The tool checks your answers in this order.

1. Not resident? Then ITR-2 if you have no business income, or ITR-3 if you do.
2. Business on regular books, F&O or intraday? Then ITR-3, whatever else you have.
3. Presumptive business or profession? ITR-4 if everything else is simple. If you also have big capital gains, income above ₹50 lakh, three or more houses or any special item, ITR-3.
4. No business income at all? ITR-1 if everything is simple; otherwise ITR-2.

"Simple" here means: income up to ₹50 lakh, equity LTCG only within ₹1.25 lakh, fewer than three houses and none of the special items. One "complex" answer is enough to move you to the next form.

All ITR forms at a glance

There are seven ITR forms. The tool covers the four used by individuals. The other three are for firms, companies and trusts.

The exact eligibility conditions are printed in the instructions released with each year's forms on the income tax e-filing portal. From tax year 2026-27 the Income-tax Act, 2025 renumbers the sections mentioned on this page, such as 44AD and 112A; the tool follows the rules described here.

What each form allows

This side-by-side view shows why one item can move you to a bigger form.

The four individual forms in detail

ITR-1 (Sahaj): the simplest form

ITR-1 is meant for the plain salaried case. It is short, mostly pre-filled from your Form 16, AIS and 26AS, and quick to verify.

Who can use ITR-1:

• Resident and ordinarily resident individuals.
• Total income up to ₹50 lakh.
• Income from salary or pension.
• Income from house property within the limit set in that year's form. Older versions allowed only one house; if you own two, check the current form's instructions before choosing ITR-1.
• Other sources such as savings and FD interest, dividends and family pension.
• Agricultural income up to ₹5,000.
• Long-term capital gains on listed equity shares and equity mutual funds under Section 112A up to ₹1.25 lakh.

Who cannot use ITR-1:

• NRIs and RNORs.
• Anyone with total income above ₹50 lakh.
• Directors of a company and people who held unlisted equity shares at any time in the year.
• People with foreign assets, foreign bank accounts or foreign income.
• Anyone with business or professional income.
• Anyone with short-term capital gains, or gains on property, debt funds, gold or crypto.
• Anyone with losses brought forward or to be carried forward.
• Employees of eligible startups who have deferred tax on ESOPs.

ITR-2: capital gains, NRIs and bigger incomes

ITR-2 is for individuals and HUFs who have no business or professional income but whose situation is too detailed for ITR-1. It has separate schedules for capital gains, foreign assets, multiple properties and losses.

Common reasons to file ITR-2 are: selling shares or mutual funds with a short-term gain; equity LTCG above ₹1.25 lakh; selling a flat, plot or gold; any crypto sale; being an NRI with Indian income; holding a foreign bank account, foreign shares or ESOPs of a foreign parent company; being a director; and total income above ₹50 lakh.

For NRIs, ITR-2 is the usual form even when the only Indian income is rent or bank interest. NRIs report only income that arises or is received in India, but they cannot use ITR-1 even for that simple case. Tax deducted by tenants or banks on NRI income is often at a higher rate, so filing ITR-2 is also how many NRIs get a refund.

Foreign assets are a frequent miss. A resident must report them in ITR-2 (or ITR-3) even if they earned no income from them during the year. Use our capital gains calculator to work out the gain on each sale before you fill the schedule.

ITR-3: business, profession and trading

ITR-3 is the form for individuals and HUFs with income from business or profession that is not declared on a presumptive basis. It contains a profit and loss account and a balance sheet, so you need proper books.

Who files ITR-3:

• Professionals and businesses declaring actual profit from their accounts.
• Traders in futures and options — F&O is treated as business income, even when you also have a salary.
• Intraday equity traders — intraday is speculative business income.
• Partners in a firm receiving salary, interest or a share of profit from the firm.
• Presumptive taxpayers who also have something that ITR-4 does not allow, such as capital gains beyond the small limit or income above ₹50 lakh.
• NRIs with any business or professional income in India.

F&O traders often think a loss means no return or a simpler form. The opposite is true: to carry the loss forward and set it off later, you must report it in ITR-3 and file by the due date.

ITR-4 (Sugam): presumptive income

ITR-4 is for residents who choose presumptive taxation. A small business under 44AD declares at least 6% of digital receipts and 8% of cash receipts as profit. A professional under 44ADA declares at least 50% of gross receipts. Transporters under 44AE declare a fixed amount per vehicle. No detailed books are needed.

ITR-4 also covers salary, house property within the form's limit, interest and equity LTCG up to ₹1.25 lakh, as long as total income is within ₹50 lakh. Individuals, HUFs and partnership firms (not LLPs) can use it.

To see whether presumptive taxation suits your receipts and what profit you would declare, try our presumptive tax calculator for 44AD and 44ADA.

Real-life examples

Salary plus FD interest and a small mutual fund gain

Neha earns a salary of ₹14 lakh, ₹60,000 of FD interest and ₹80,000 of long-term gain on an equity mutual fund. She lives in her own flat. Income is under ₹50 lakh, the LTCG is within ₹1.25 lakh and there is no business income. Form: ITR-1.

Salary plus a short-term gain on shares

Vikram earns ₹11 lakh and made a ₹40,000 short-term gain selling shares he held for five months. Any short-term gain takes him out of ITR-1. Form: ITR-2.

Freelance designer on 44ADA

Sana receives ₹18 lakh in fees from clients and declares 50% as profit under 44ADA. She also has savings interest. Form: ITR-4.

Salaried person who traded options

Arjun earns ₹16 lakh in salary and made a loss trading options. F&O is business income, so salary forms are no longer enough. Form: ITR-3, which also lets him carry the loss forward.

NRI with rent in India

Meera lives in Dubai and earns rent from her flat in Noida plus NRO interest. Being an NRI, she cannot use ITR-1. Form: ITR-2.

Director of a family company

Rohit draws a salary of ₹15 lakh from a private company where he is also a director. Directorship alone rules out ITR-1. Form: ITR-2.

Situations that often confuse people

Exempt income

PPF interest, maturity of eligible life policies and similar exempt receipts do not push you into a bigger form. They are reported in the exempt income section. Agricultural income is the exception: above ₹5,000, ITR-1 and ITR-4 are not allowed.

Dividends

Dividends are taxed at slab rates as income from other sources. They are allowed in ITR-1, so shares alone do not mean ITR-2. Selling shares is what creates capital gains.

Selling only at a loss

A capital loss still has to be reported in ITR-2 or ITR-3, especially if you want to carry it forward. You cannot use ITR-1 to report a loss.

RSUs and ESOPs from a foreign employer

Shares of a foreign parent company held in an overseas account are foreign assets. Even if you never sold them, a resident must disclose them, so ITR-1 is ruled out.

Residential status

Residence depends mainly on days spent in India during the year, with extra conditions for people who come and go. Returning NRIs are often RNOR for a few years. If you are unsure, settle this first, because it decides both the form and what income is taxable.

Changed jobs during the year

Two or more Form 16s do not change the form. If everything else is simple, ITR-1 still works. Add both salaries, check that the standard deduction is claimed once, and pay any shortfall in TDS before filing.

Pension and family pension

Pension from a former employer is salary income, and family pension received after the death of a family member is income from other sources. Both fit in ITR-1 if nothing else pushes you to a bigger form.

Clubbed income of spouse or minor child

Income of a minor child, and some income from assets gifted to a spouse, is added to your own income. If that clubbed income includes, say, a short-term gain on shares, it counts as yours for choosing the form.

Hindu Undivided Family (HUF)

An HUF cannot use ITR-1. It files ITR-2 if it has no business income, ITR-3 if it has business income on books, or ITR-4 if it uses presumptive taxation within the limits.

Income below the taxable limit

Even if your income is below the exemption limit, you may still need to file — for example, if you deposited more than ₹1 crore in current accounts, spent more than ₹2 lakh on foreign travel or paid electricity bills above ₹1 lakh in the year. Filing is also the only way to get a refund of TDS. The same form rules apply in these cases.

Check your AIS before you choose

Your Annual Information Statement often reveals items that change the form. Open it on the portal and look for these entries before you rely on the tool's answer.

• Sale of securities or mutual fund units — any sale means capital gains or losses to report. Even a small short-term gain takes you to ITR-2.
• Business receipts or GST turnover — if your GST returns show sales, the department expects business income in your return.
• Purchase or sale of immovable property — a sale creates capital gains; a purchase may mean a new house property to report.
• Foreign remittances — money sent abroad to buy shares or open accounts can point to foreign assets that must be disclosed.
• Rent received or interest from many banks — these are fine in ITR-1, but must be included.

If an AIS entry is wrong, submit feedback on it on the portal instead of simply leaving it out of your return.

Common mistakes when choosing a form

• Filing ITR-1 because "it is what I filed last year", even though this year had a share sale or a new property. The right form can change every year.
• Picking ITR-4 for F&O or intraday trading. The tool sends trading to ITR-3, where actual trading results are reported; declaring trading income on a presumptive basis is a judgement call that needs expert review.
• Leaving out foreign shares or RSUs because nothing was sold. Disclosure is about holding, not selling.
• Ignoring a directorship in a small family company or a dormant private company.
• Treating a capital loss as "nothing to report", and then losing the right to carry it forward.
• Answering the resident question by citizenship instead of days spent in India.

What happens if you file the wrong form

The department's system checks the form against the income you report. If it does not fit, you get a notice that the return is defective. You must then file a corrected return within the time given in the notice; if you do not, the return can be treated as if it was never filed, with late fee and loss of benefits that follow.

Filing a simpler form than you should can also mean income gets left out. For instance, squeezing a short-term gain into ITR-1 is not possible, so people sometimes skip it — and it then shows up as a mismatch with AIS. A correct form from the start avoids both problems.

If you realise the mistake yourself before the department does, a revised return can usually be filed within the time limit allowed by law.

Documents to keep ready

The tool builds a list for your answers. In general, you will need:

Filing steps and deadlines

1. Log in to the e-filing portal and choose the assessment year.
2. Select the form the tool suggested. Pre-filled data from your employer, bank and broker is loaded.
3. Check every pre-filled figure against your documents and AIS, and add what is missing.
4. Choose your tax regime. Our income tax calculator shows which one is cheaper.
5. Pay any balance tax, submit and e-verify the return within 30 days, using Aadhaar OTP or net banking.

Due dates depend on your type of return and whether a tax audit applies, and are sometimes extended by the department. Our ITR due date checker shows the date for your case. Filing late attracts a fee of ₹5,000 (₹1,000 if total income is up to ₹5 lakh) and you lose the right to carry forward most losses.

ITR form and tax regime

The form and the regime are separate choices. If you file ITR-1 or ITR-2, you can choose the old or new regime each year inside the return. If you file ITR-3 or ITR-4 because you have business income, leaving the new regime needs a separate form filed by the due date, and switching back is allowed only once. So pick the form and the regime together, especially in your first year of business income.

After you file: what to expect

A return is complete only after it is verified. Once e-verified, it goes for processing, and you receive an intimation by email comparing your figures with the department's. If they match, there is nothing more to do; if you are owed a refund, it is sent to your pre-validated bank account.

If the intimation shows a difference, read the reason. Common causes are TDS claimed that does not appear in Form 26AS, a deduction not supported by the form you chose, or income in AIS that was not in the return. You can accept and pay, disagree online with reasons, or file a rectification request.

A notice that the return is defective is different. It usually means the form or a schedule does not match your income — for example, business income reported without the required accounts. Responding on time with a corrected return keeps your original filing date.

Keep your documents for several years after filing. If a question comes later, the capital gains statement, rent receipts or books you used are your proof.

Get it checked by an expert

Still unsure which form fits? A TaxCaller tax expert can look at your Form 16, AIS and statements, confirm the right ITR form and regime, and file the return for you. The fee is told upfront before any work begins, and your first call is free. See our income tax filing service to get started.