Which ITR Form to File for AY 2026-27: ITR-1 to ITR-7 Selection Guide

Decision tree

1. Are you an individual/HUF? - then ITR-1/2/3/4; if you are a firm/LLP/AOP/BOI - jump to ITR-5; company - ITR-6/7
2. Individual with salary + savings interest + one house property and total income under Rs. 50 lakh? - ITR-1
3. Add any capital gains, more than one house property, foreign assets/income, lottery, or income over Rs. 50 lakh - ITR-2
4. Business/profession income (including F&O)? - ITR-3, unless you are a presumptive 44AD/44ADA/44AE case - ITR-4
5. Presumptive but also have capital gains or un-reported cash basis - ITR-3 wins
6. Entity case: LLP/firm/AOP - ITR-5; company - ITR-6, charity - ITR-7

What fits in each form

• ITR-1 (Sahaj): salary, pension, savings FD interest, one house property, agricultural up to Rs. 5,000
• ITR-2: everything ITR-1 does not - capital gains, foreign assets, 2+ house properties, NRI
• ITR-3: business/profession income, F&O, audit cases, partner salaries
• ITR-4 (Sugam): 44AD/44ADA/44AE presumptive cases
• ITR-5: firms, LLPs, AOPs, BOIs
• ITR-6: companies (no 11/12 claims)
• ITR-7: trusts, political parties, charitable units

Form-switching trap

Jodi ka sabse common point: a freelancer who files ITR-4 every year, then buys shares and sells them (capital gains) - that income requires ITR-2/ITR-3. Filing the wrong form attracts a defective-return notice; the portal prompts the required schedule only after selection. When in doubt, prefer ITR-3 over ITR-4, and ITR-2 over ITR-1, since moving UP is safe and moving down is not.

What you should do

• List all your income heads first (including AIS/26AS lines) before picking the form
• If you have salary + bank interest below Rs. 50 lakh total - ITR-1 is fine
• F&O trades mean ITR-3 - not ITR-4
• LLPs: file ITR-5, not the partners' personal returns for LLP income
• Check the notification for AY 2026-27 once forms are live on the e-filing portal mid-June and use the utility-recommended form