ITR Forms for AY 2026-27: ITR-1 to ITR-7, Which One to File

Every ITR form serves a different type of taxpayer, and filing the wrong one invites rejection or a defective return notice. For AY 2026-27 the notified forms use the terminology of the Income-tax Act, 2025, so returns filed on old-format forms are rejected at the portal. This guide matches each form, ITR-1 through ITR-7, to the taxpayer who should use it.

Quick Form Selector for AY 2026-27

ITR-1 Sahaj: The Salaried Taxpayer’s Form

ITR-1 fits resident individuals whose total income stays within ₹50 lakh for FY 2025-26. The income must come from salary or pension, one house property and other sources such as interest. Agricultural income up to ₹5,000 is also permitted within this form.

You cannot use ITR-1 if you have capital gains, business or professional income, more than one house property, foreign assets or income, or a directorship in a company. Trying to force such income into ITR-1 leads to rejection or a defective notice. When in doubt, move up to ITR-2 rather than squeeze figures into the smaller form.

ITR-2 and ITR-3: Gains, Foreign Income and Business

ITR-2 is for individuals and HUFs without business income but with more complex profiles. Use it when you have capital gains, multiple house properties, foreign assets or foreign income, or when you are a director in a company. It also covers income received as a partner in a firm.

ITR-3 applies once business or professional income enters the picture. Professionals maintaining books, trading businesses and salaried directors with business interests file ITR-3. The form carries schedules for profit and loss, balance sheet and other business disclosures.

ITR-4 Sugam: Presumptive Taxation

ITR-4 is the simplified return for residents using presumptive schemes. It covers business income under section 44AD, professional income under section 44ADA and transport income under section 44AE, with total income up to ₹50 lakh. Like ITR-1, it excludes capital gains, multiple house properties and foreign assets, which push you to ITR-3 or ITR-2.

ITR-5, ITR-6 and ITR-7: Entities

ITR-5 serves non-individual entities such as firms, LLPs, associations of persons and bodies of individuals. ITR-6 is the return for companies other than those claiming exemption for charitable or religious purposes. ITR-7 is for trusts, political parties and similar institutions that claim exemptions for charitable, religious or comparable objectives.

What Changed for AY 2026-27

The AY 2026-27 forms are the first set drafted around the Income-tax Act, 2025, which takes effect from 1 April 2026. Schedules and terminology follow the new Act, which is why the CBDT has made clear that filings on old-format forms will be rejected. Download forms and utilities only from incometax.gov.in, and verify the acknowledgement after submission.

This realignment also means older offline utilities and saved drafts from earlier years cannot be reused. Start a fresh return for AY 2026-27, import the pre-filled data, and check each schedule before submitting. If you received a rejection, refile with the current utility rather than editing the old file.

Key Takeaways

• ITR-1 Sahaj: resident individuals, income up to ₹50 lakh, salary or pension, one house property, other sources and agricultural income up to ₹5,000.
• ITR-2: capital gains, multiple house properties, foreign assets or income, directors and HUFs without business income.
• ITR-3: business or professional income; ITR-4 Sugam: presumptive income under 44AD, 44ADA or 44AE up to ₹50 lakh.
• ITR-5 covers firms, LLPs, AOPs and BOIs; ITR-6 covers companies; ITR-7 covers trusts and exempt institutions.
• AY 2026-27 forms follow Income-tax Act 2025 terminology, and old-format filings are rejected.

Frequently Asked Questions

Can a salaried person with capital gains use ITR-1?

No. Any capital gain, whether short-term or long-term, pushes you to ITR-2 for AY 2026-27. ITR-1 stops at salary or pension, one house property, other sources and agricultural income up to ₹5,000.

Which form does an LLP file?

An LLP files ITR-5. Firms, AOPs, BOIs and similar entities also use ITR-5. Companies move to ITR-6, while trusts claiming exemption file ITR-7.

My salary alone is ₹55 lakh. Can I use ITR-1?

No, ITR-1 is limited to total income up to ₹50 lakh. A salaried resident above that limit files ITR-2, since there is no business income. The higher form asks for the same salary details plus additional disclosures.

Why was my return rejected this year?

AY 2026-27 forms follow Income-tax Act 2025 terminology, and filings made on old-format forms are rejected at the portal. Refile using the current utility downloaded from incometax.gov.in. Verify the acknowledgement after submission.

I use presumptive taxation. Is ITR-4 the only option?

If all conditions match — resident status, income under sections 44AD, 44ADA or 44AE, and total income up to ₹50 lakh — ITR-4 Sugam is the right form. Capital gains or multiple house properties push you to ITR-3 instead.

Disclaimer: Tax laws change frequently. Verify current rates and deadlines on the official portals (incometax.gov.in, gst.gov.in) or consult a qualified professional before acting.