Which ITR form should you file? A guide for salaried employees, pensioners and other taxpayers
For taxpayers who are not required to have their accounts audited, the deadline to file the Income Tax Return (ITR) for the Assessment Year (AY) 2026-27 is 31 July 2026. The deadline primarily applies to salaried employees, pensioners and other individuals who will file their returns using forms such as ITR-1 and ITR-2.
The upcoming ITR filing will cover income earned during the financial year from 1 April 2025 to 31 March 2026. Before submitting their returns, taxpayers should carefully check the assessment year, select the appropriate ITR form and understand the latest changes introduced by the Income Tax Department to avoid errors, notices or possible penalties.
Under income tax rules, income is broadly classified under four categories: salary, income from house property, capital gains, and profits and gains from business or profession. The correct ITR form depends on the taxpayer’s income sources and financial profile.
Who Can File ITR-1 (Sahaj)?
ITR-1, also known as Sahaj, can be filed by resident individuals having a total annual income of up to ₹50 lakh. It is mainly intended for individuals earning income from salaries, pensions and other sources such as bank interest or dividends.
The form can also be used by eligible taxpayers having long-term capital gains of up to ₹1.25 lakh.
Several changes have been introduced in ITR-1 this year. Taxpayers can now report income from two house properties instead of only one. The form also includes a new option to disclose “unrealised rent.” However, the field related to Section 89A relief for retirement savings maintained in foreign countries and foreign assets has been removed.
Who Should File ITR-2?
ITR-2 is applicable to individuals and Hindu Undivided Families (HUFs) who are not eligible to file ITR-1 but do not have income from business or professional activities.
This form is commonly used by company directors, individuals holding unlisted equity shares and taxpayers with certain capital gains or foreign income requirements.
Unlike ITR-1, the Section 89A relief reporting option has been retained in ITR-2. The provision allows eligible taxpayers to report relief related to specified retirement benefit accounts held outside India.
Who Can File ITR-3?
ITR-3 is designed for individuals and HUFs who have income from business or profession along with income from salary, pension, house property, capital gains or other sources.
It is generally used by taxpayers who cannot use ITR-1, ITR-2 or ITR-4, especially those earning business or professional income.
The updated ITR-3 form includes provisions for reporting foreign assets and foreign retirement income, making it suitable for taxpayers with international financial interests.
Who Is Eligible for ITR-4 (Sugam)?
ITR-4, also known as Sugam, is available for individuals, HUFs, and resident firms (excluding Limited Liability Partnerships) who opt for presumptive taxation under Sections 44AD, 44ADA, and 44AE of the Income Tax Act.
The form covers income from eligible businesses and professions, salary or pension, house property, interest income, and dividends.
Taxpayers with agricultural income up to ₹5,000 and long-term capital gains under Section 112A up to ₹1.25 lakh can also file returns using ITR-4.
Similar to ITR-1, the revised ITR-4 allows reporting of income from two house properties and includes a separate field for “unrealised rent.” The Section 89A reporting field has also been removed from this form.
With changes introduced to the ITR forms for AY 2026-27, taxpayers should carefully review their income sources and financial details before filing their returns to ensure compliance and avoid unnecessary complications.
