Guide
Which ITR Form Should I Use?
Last reviewed: April 2026 · Sourced from official government portals
01
All 7 Forms And Who Uses Each
India has 7 ITR forms. Filing the wrong one is treated as a defective return - you will get a notice asking you to re-file in the correct form within 15 days.
Which ITR Form to Use - Complete Reference (AY 2025-26)
| Form | Who Files | Key Conditions | Cannot Be Used If |
|---|---|---|---|
| ITR-1 (Sahaj) | Resident individual | Salary/pension + one house property + interest income. Total income below Rs. 50 lakh. | Capital gains, multiple properties, foreign assets, income above Rs. 50 lakh, director role, unlisted shares held |
| ITR-2 | Individual or HUF | Capital gains. Multiple house properties. Foreign income or assets. Income above Rs. 50 lakh. Directorship. Unlisted shares. | Business or professional income (use ITR-3 or ITR-4 for that) |
| ITR-3 | Individual or HUF | Business or professional income with actual books of accounts. Also if turnover exceeds presumptive limits. | Entities (firms use ITR-5, companies use ITR-6) |
| ITR-4 (Sugam) | Individual, HUF, or Firm (not LLP) | Presumptive taxation: 44AD (business turnover ≤ Rs. 2 crore) or 44ADA (professional receipts ≤ Rs. 50 lakh). No capital gains. | Capital gains, turnover above Rs. 2 crore (44AD), professional income above Rs. 50 lakh (44ADA), LLPs |
| ITR-5 | Partnership Firm, LLP, AOP, BOI | Mandatory for all firms and LLPs - regardless of income, activity, or size. | Companies, individuals, trusts |
| ITR-6 | Companies (Pvt Ltd, Public Ltd, OPC) | All companies except those claiming Section 11 charitable exemption. | Non-company entities |
| ITR-7 | Trusts, NGOs, political parties, universities, research institutions | Entities filing under Section 139(4A), 139(4B), 139(4C), or 139(4D). | Companies and non-charitable entities |
- •ITR-1 (Sahaj): Resident individuals, total income below Rs. 50 lakh, earned from salary, one house property, and interest income. No capital gains, no directorship, no foreign assets.
- •ITR-2: Individuals with capital gains, more than one house property, foreign income, total income above Rs. 50 lakh, directorship in a company, or holding of unlisted shares.
- •ITR-3: Individuals or HUFs with income from business or profession using actual books of accounts.
- •ITR-4 (Sugam): Individuals, HUFs, and firms (not LLPs) using presumptive taxation under Sections 44AD, 44ADA, or 44AE.
- •ITR-5: Partnership firms, LLPs, AOPs (Association of Persons), and BOIs (Body of Individuals).
- •ITR-6: All companies except those claiming exemption under Section 11.
- •ITR-7: Trusts, political parties, universities, and scientific research institutions.
Source: CBDT ITR Notification for AY 2025-26
02
Itr-1 Vs Itr-2: The Confusion Most People Face
Most salaried people file ITR-1 correctly. But ITR-1 cannot be used in these situations - and they are more common than people realise.
ITR-1 vs ITR-2: Disqualifiers That Force You to Use ITR-2
| Situation | ITR-1 Allowed? | Correct Form |
|---|---|---|
| Salary income, one property, interest only - total below Rs. 50 lakh | Yes | ITR-1 |
| Sold any mutual fund units, shares, or property this year | No | ITR-2 |
| Director in any company (even dormant) | No | ITR-2 |
| Held unlisted shares at any point during the year | No | ITR-2 |
| Foreign bank account or any foreign asset | No | ITR-2 |
| Total income above Rs. 50 lakh from any source | No | ITR-2 |
| Non-resident or Not Ordinarily Resident | No | ITR-2 |
| Agricultural income above Rs. 5,000 | No | ITR-2 |
| Income from more than one house property | No | ITR-2 |
| Business or professional income | No | ITR-3 or ITR-4 |
- •You are a director in any company - even a dormant startup where you earn nothing
- •You hold unlisted equity shares at any point during the year
- •You have any capital gains - from selling shares, mutual funds, property, or any other asset
- •You have income from more than one house property
- •Your total income from all sources exceeds Rs. 50 lakh
- •You have a foreign bank account, foreign investments, or any income from outside India
- •You are a non-resident or not ordinarily resident
- •Your agricultural income exceeds Rs. 5,000
If you filed ITR-1 last year but any of these apply this year, you need ITR-2 this time.
03
Itr-3 Vs Itr-4: For Business And Professional Income
The choice comes down to one question: are you using the presumptive taxation scheme?
- •ITR-4 (Sugam): For businesses declaring income as 8% of turnover (6% for digital receipts), or professionals declaring 50% of gross receipts. Cannot use this if business turnover exceeds Rs. 2 crore or professional receipts exceed Rs. 50 lakh, or if you also have capital gains.
- •ITR-3: For actual books of accounts, or if your turnover exceeds presumptive limits, or if you have capital gains alongside business income.
- •Key catch: if you opt out of the presumptive scheme (Section 44AD), you cannot re-enter it for the next 5 years. Think before switching.
Source: Sections 44AD, 44ADA, 44AE, Income Tax Act 1961
04
Itr-5 For Firms And Llps
Partnership firms and LLPs always file ITR-5.
- •The firm files ITR-5 for its own income - regardless of size, profit level, or whether the business was active
- •Each partner then files their own individual ITR for personal income
- •A partner's share of LLP profit is exempt from tax in their personal return (already taxed at LLP level)
- •Any salary or interest the partner receives from the LLP is taxable in their personal return
- •Partners typically file ITR-3 (if they also have business income) or ITR-2 (if salary and capital gains only)
05
What Happens If You File The Wrong Form
- •Defective return notice under Section 139(9): You will be asked to re-file in the correct form within 15 days
- •If you do not respond: The return is treated as never filed - triggering late filing fees and interest
- •Losses cannot be carried forward: If the return ends up invalid, you lose the ability to carry forward any losses for that year
- •Increased scrutiny risk: A defective return pattern can trigger closer scrutiny of your tax affairs
06
Quick Reference
- •Pvt Ltd or Public Company = ITR-6
- •LLP or Partnership Firm = ITR-5
- •Trust, NGO, political party = ITR-7
- •Individual: salary + one property + interest + total under Rs. 50 lakh + no capital gains + not a director = ITR-1
- •Individual: capital gains, director role, foreign assets, above Rs. 50 lakh, or unlisted shares = ITR-2
- •Individual or firm: business/professional income under presumptive limits = ITR-4
- •Individual or firm: business income with actual accounts, or capital gains alongside business income = ITR-3
FAQ
Frequently Asked Questions
ITR-2. Any capital gains - even from redeeming mutual funds - disqualify you from ITR-1. It does not matter how small the amount is.
ITR-3 if you maintain actual books of accounts. ITR-4 if your gross receipts are below Rs. 50 lakh and you want to use the 50% flat deduction under Section 44ADA (which applies to professionals). If you also have a foreign bank account, ITR-2 requirements may apply - check with a CA.
No. If you hold unlisted shares or are a director in any company, you must use ITR-2. This is one of the most common reasons for a defective return notice.
Yes. File a revised return using the correct form by December 31 of the assessment year. A revised return replaces the original completely.
They file one ITR covering both their salary income and their share of the LLP. Their LLP profit share goes in as exempt income. Any salary or interest they receive from the LLP itself is reported as taxable. Most partners with both salary and LLP income use ITR-3.
How we reviewed this page
The penalty amounts, deadlines, and regulatory requirements on this page are sourced directly from official government portals. We do not use secondary sources. When regulations change, we update the page.
Sources will be added soon.
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