Can I file ITR-1 if I have two house properties?

Yes, from AY 2026-27. ITR-1 and ITR-4 now allow up to two house properties. With three or more, file ITR-2.

Can I file ITR-1 if I sold shares?

Only if your gains are long-term gains on listed shares or equity funds of up to ₹1.25 lakh and you have no losses to carry forward. Otherwise, file ITR-2 (or ITR-3 with business income).

Which ITR form is for freelancers?

ITR-4 if you use presumptive taxation under section 44ADA and your income is up to ₹50 lakh; ITR-3 if you keep books and declare your actual profit.

Which ITR form should I file? ITR-1, 2, 3 and 4 explained (AY 2026-27)

Updated 23 September 2026

There are four income tax return forms for individuals. ITR-1 is for simple salary and interest income, ITR-4 for presumptive business income, ITR-2 for capital gains and anything more complex without business income, and ITR-3 for business income with books, including F&O and intraday trading. This guide covers returns for FY 2025-26 income (AY 2026-27).

Who can file ITR-1 (Sahaj)?

Resident individuals (not "resident but not ordinarily resident") with total income up to ₹50 lakh from:

salary or pension;
up to two house properties (new this year; it used to be one);
interest, dividends and family pension;
long-term gains on listed shares or equity mutual funds of up to ₹1.25 lakh, with no losses to carry forward (also new);
agricultural income up to ₹5,000.

You can't use ITR-1 if you're a company director, held unlisted shares, have foreign assets or income, have crypto income, or are deferring tax on startup ESOPs.

When do I need ITR-2?

When you have no business income but ITR-1 doesn't fit: other capital gains (short-term gains, long-term gains above ₹1.25 lakh, property sales, debt funds), three or more house properties, foreign assets, crypto, unlisted shares, a directorship, income above ₹50 lakh, or you're a non-resident. HUFs without business income also file ITR-2.

ITR-3 or ITR-4 for business and freelance income?

ITR-4 (Sugam) is for residents who use presumptive taxation: section 44ADA for professionals (50% of receipts as profit), 44AD for businesses (6% or 8% of turnover) or 44AE for goods vehicles, with total income up to ₹50 lakh. It carries the same two-house and ₹1.25 lakh gains allowance as ITR-1.

ITR-3 is for everyone else with business or professional income: those who keep books, declare profit below the presumptive rate, or trade. Futures and options and intraday trading count as business income, so traders file ITR-3 even if they have a salary.

Do I have to file if my income is below the limit?

Usually not, but filing is compulsory, whatever your income, if during the year you deposited more than ₹1 crore in current accounts or ₹50 lakh or more in savings accounts, spent more than ₹2 lakh on foreign travel or more than ₹1 lakh on electricity, had TDS or TCS of ₹25,000 or more (₹50,000 if you're 60 or older), or, as a resident, held foreign assets. You also need to file to get a refund of tax deducted.

What about firms and companies?

Partnership firms and LLPs file ITR-5 (a firm, but not an LLP, can use ITR-4 for presumptive income), companies file ITR-6, and trusts ITR-7.