Who should file ITR-1 (Sahaj)?

ITR-1 is for resident individuals with: (1) Salary or pension income, (2) One house property (not let out during year), (3) Other income like bank interest, FD interest, (4) Total income up to ₹50 lakh, (5) Agricultural income up to ₹5,000. NOT eligible if: you have capital gains, more than one property, foreign income/assets, business income, or income above ₹50 lakh.

Who should file ITR-2?

ITR-2 is for individuals and HUFs with: (1) Income from capital gains (stock/mutual fund sales), (2) More than one house property, (3) Foreign income or foreign assets, (4) Income above ₹50 lakh, (5) Director in a company, (6) Investment in unlisted shares. Use ITR-2 if you sold any stocks or mutual funds during FY 2025-26, even for a small amount.

What happens if I file wrong ITR form?

Filing wrong ITR form makes your return 'defective'. IT department sends notice under Section 139(9) asking you to correct it within 15 days. You can refile with correct form within the notice period. If not corrected, the return is treated as if it was never filed, making you liable for penalties for non-filing.

📊 FY 2025-26 · AY 2026-27 · Instant Answer

Which ITR Form Should You File?

Answer 5 simple questions → get your exact ITR form instantly. Never file the wrong form and get an IT notice.

🔍 ITR Form Finder — Answer 5 Questions

1. What is your primary source of income?

2. Did you sell any stocks or mutual funds in FY 2025-26?

3. How many residential properties do you own?

4. Is your total income above ₹50 lakh?

5. Do you have any foreign income or foreign assets?

📊 ITR-1 vs ITR-2 — Complete Comparison

ITR-1

ITR-2

Also called

Sahaj

—

Salary income

✅ Yes

Capital gains

❌ No

✅ Yes

Multiple properties

❌ No

✅ Yes

Foreign income

❌ No

✅ Yes

Income limit

₹50 lakh

No limit

Business income

❌ No

❌ No (use ITR-3)

Complexity

🟢 Simple

🟡 Moderate

Time to fill

10-15 min

20-30 min

Suitable for

Most salaried

Investors/traders

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ITR-3 and ITR-4 — For Business Income

ITR-3 is for individuals with business or professional income (doctors, lawyers, consultants, traders in F&O). Also use ITR-3 if you have both salary AND significant business income, or if you are a director in a company. ITR-3 requires balance sheet and P&L statement for business — more complex than ITR-1 and ITR-2.

ITR-4 (Sugam) is for individuals opting for Presumptive Taxation Scheme under Section 44AD (business), 44AE (transport), or 44ADA (professionals). If your business turnover is below ₹3 crore (44AD) or professional receipts below ₹75 lakh (44ADA), you can declare 8%/50% as profit without maintaining detailed books. Much simpler than ITR-3.

Most Common ITR Mistake — Wrong Form Selection

Many people with SIPs file ITR-1 without realizing that even one mutual fund redemption (even ₹500) requires ITR-2. Check your CAMS/KFintech statement and broker statements before deciding your form. If in doubt, use ITR-2 — it covers all ITR-1 situations plus more. You can always file ITR-2 even if you only need ITR-1.

Frequently Asked Questions

I have SIP investments but never redeemed — which ITR?▼

ITR-1 is fine if you only have SIP investments and never redeemed (no capital gains). If you redeemed even one unit — use ITR-2. Note: SIP dividend payouts also count as income and must be declared, but don't change the form to ITR-2.

I have both salary and freelance income — which ITR?▼

If freelance income is below ₹75 lakh and you want to use presumptive taxation (44ADA — declare 50% as income): ITR-4. If you want to show actual expenses: ITR-3. Do not use ITR-1 or ITR-2 for freelance/professional income.

Which ITR for NRI?▼

NRIs cannot use ITR-1. Use ITR-2 for NRIs with salary, rental income, and capital gains. ITR-3 for NRIs with business income in India. NRIs must declare foreign assets in Schedule FA of ITR-2.