Types of Income Tax Return (ITR) Forms AY 2026-27

Posted By Amritesh
On July 27th, 2026
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Every tax season, the first and most consequential decision a taxpayer makes isn’t how much tax to pay, but which form to file it on. The Income Tax Department currently notifies seven ITR forms (ITR-1 to ITR-7), each scoped to a specific category of taxpayer and income profile. Filing the wrong one doesn’t just cause inconvenience: under Section 139(9), it renders your return “defective,” inviting a notice from the CPC and a scramble to refile within the given window.

This guide breaks down all seven forms, who should use each one, who is excluded, and the due dates applicable for Financial Year 2025-26 (Assessment Year 2026-27), along with the key changes taxpayers should know about this year.

Why the Right ITR Form Matters

Each ITR form is designed to capture a particular mix of income sources and taxpayer types. A salaried employee with only a savings account and one house property has very different disclosure needs from a freelancer running a consultancy, or a company with audited financial statements. Using a simplified form when you’re not eligible — for instance, filing ITR-1 after redeeming mutual funds — makes the return defective. Using a more complex form than necessary is technically permitted but adds unnecessary paperwork.

ITR-1 to ITR-7: Applicability at a Glance

Form	Who Should File	Who Cannot File	Due Date*
ITR-1 (Sahaj)	Resident individuals (not NRI/RNOR) with total income up to ₹50 lakh: salary/pension, up to two house properties, other sources (interest, dividends, family pension), LTCG u/s 112A up to ₹1.25 lakh, agricultural income up to ₹5,000.	Any capital gains beyond the 112A limit, business/professional income, foreign assets or foreign income, directorship in a company, more than two house properties, NRIs and RNORs.	31 Jul 2026
ITR-2	Individuals/HUFs with income from salary, house property (any number), capital gains, foreign assets/income, or who are directors/hold unlisted shares — but no business or professional income.	Any income from business or profession (even presumptive).	31 Jul 2026
ITR-3	Individuals/HUFs with income from business or profession under the regular (non-presumptive) scheme — includes salary, house property, capital gains and other sources alongside business income; also covers F&O and intraday trading.	Taxpayers eligible for ITR-1, ITR-2 or ITR-4; firms and LLPs (they use ITR-5).	31 Aug 2026 (non-audit); 31 Oct 2026 (audit)
ITR-4 (Sugam)	Resident individuals, HUFs and firms (other than LLPs) opting for presumptive taxation under Sec 44AD (turnover up to ₹3 crore if cash receipts is 5% or less, or else ₹2 crore ), 44ADA (professional receipts up to ₹75 lakh if cash receipts is 5% or less, or else ₹50 lakhs) or 44AE, (up to 10 goods carriages). Total Income does not exceed ₹50 lakhs.	Directors, holders of unlisted equity shares, NRIs, more than one house property with unrealised rent switch-outs, or anyone opting out of presumptive taxation.	31 Aug 2026
ITR-5	Partnership firms, LLPs, AOPs, BOIs, business trusts, investment funds, co-operative societies and local authorities.	Individuals, HUFs, companies, and entities required to file ITR-7.	31 Jul/31 Aug (non-audit); 31 Oct (audit); 30 Nov (transfer pricing)
ITR-6	Companies registered under the Companies Act (private, public, OPCs) that do not claim exemption under Section 11 (income from charitable/religious property).	Companies claiming Section 11 exemption (they file ITR-7).	31 Oct 2026 (audit mandatory)
ITR-7	Persons and entities required to file returns under Sections 139(4A)/(4B)/(4C)/(4D) — trusts, political parties, scientific research associations, news agencies, and specified educational or medical institutions.	Individuals, firms, and companies not covered by the above sections.	31 Jul/31 Oct, as applicable

*Due dates are as notified for AY 2026-27 and may be revised by CBDT; always confirm on the e-filing portal before submission.

A Simple Decision Path

If you’re unsure where you fit, work through these questions in order:

Are you an individual or HUF? If not — a firm, LLP, company or trust — skip to the entity-specific forms (ITR-5, ITR-6 or ITR-7).
Do you have any business or professional income? If no, choose between ITR-1 (simple, income up to ₹50 lakh, no capital gains beyond the small 112A exemption) and ITR-2 (capital gains, multiple properties, foreign assets, directorships).
If yes to business/professional income, are you opting for presumptive taxation under Section 44AD, 44ADA or 44AE? If yes, use ITR-4 (subject to the eligibility caps). If no — or if you’re stepping out of presumptive taxation this year — use ITR-3.
Received income from equity or mutual fund redemptions, foreign assets, or hold a directorship? These immediately rule out ITR-1 and ITR-4, regardless of the amount involved.

Key Changes for AY 2026-27

ITR-1 now accommodates up to two house properties (previously restricted to one), along with a new field for unrealised rent.
ITR-4 also picks up the unrealised rent field, letting presumptive taxpayers with a let-out property avoid switching to ITR-3.
Non-audit taxpayers filing ITR-3 or ITR-4 get a due date of 31 August 2026 instead of the earlier 31 July — a permanent change under the Finance Act, 2026, not a one-off extension.
ITR-2’s Schedule CG has been expanded to reflect post-Budget 2024 capital gains rates: STCG on listed equity at 20% (Section 111A) and LTCG on listed equity above ₹1.25 lakh at 12.5% (Section 112A).
ITR-3 introduces separate reporting for F&O and intraday transactions for greater transparency.
Disability classifications under Sections 80DD and 80U have been expanded across ITR-1, 2, 3 and 4 to capture specific conditions rather than broad categories.

Note: AY 2026-27 covers income earned in FY 2025-26 and continues to be governed by the Income Tax Act, 1961, even though the Income Tax Act, 2025 has since come into force for income earned from April 2026 onward.

Common Mistakes to Avoid

Filing ITR-1 after any equity or mutual fund redemption during the year, however small.
Overlooking a directorship or unlisted equity shareholding, both of which rule out ITR-1 and ITR-4.
Assuming presumptive taxation is a one-time-only choice — opting out after five consecutive years locks you into ITR-3 with full books of accounts.
Missing the distinct due dates for ITR-3/ITR-4 (31 August) versus ITR-1/ITR-2 (31 July) for non-audit cases.
Ignoring that a missed original due date can permanently block the carry-forward of business and capital losses.

Key Points to Evaluate

Choosing the correct ITR form comes down to two questions: what kind of taxpayer are you, and what does your income actually consist of this year? A salaried individual’s profile can change quickly — a second house property, a mutual fund redemption, or a small consulting assignment can all shift which form applies. Reviewing your income sources before you sit down to file, rather than defaulting to last year’s form, is the simplest way to avoid a defective return.

Wealthtech Speaks or any of its authors are not responsible for any errors or omissions, accuracy, completeness, timeliness or for the results obtained from the use of this information. This article is for informational purpose only. Readers are advised to research further to have detailed knowledge on the topic. It is very important to do your own analysis and consult your Financial Advisor before arriving at any conclusion.