Compare ITR-1 to ITR-7 for AY 2026-27 and AY 2027-28. Eligibility, income limits, capital gains, business income and entity returns explained clearly.
The Income-tax Department has rationalised the ITR ecosystem for AY 2026-27 and AY 2027-28, with the new tax regime as default, expanded AIS pre-fills, and digital-asset reporting integrated into nearly every form. Choosing the right ITR — out of ITR-1 to ITR-7 — is the foundation of an accurate, refund-ready filing. This guide maps every taxpayer category to the correct form.
ITR-1 Sahaj: Salaried with Simple Income
ITR-1 is for resident individuals with total income up to ₹50 lakh from salary, one house property, family pension, agricultural income up to ₹5,000, and other sources such as interest. You cannot use ITR-1 if you have capital gains, business income, foreign assets, or directorship in a company. The 2026 form auto-fetches Form 16, AIS, and 26AS data with one-click validation.
ITR-2: Capital Gains and Multiple Properties
ITR-2 applies to individuals and HUFs without business or professional income but with capital gains, more than one house property, foreign income, or lottery winnings. Disclose unlisted shares, ESOPs, virtual digital assets, and foreign bank accounts in Schedules CG, FA, and VDA. ITR-2 is the most common form for senior management, NRIs, and investor-class taxpayers.
ITR-3: Business and Professional Income
ITR-3 is for individuals and HUFs earning from a proprietary business or profession, including partners drawing income from a firm. It requires complete profit-and-loss, balance sheet, and tax-audit annexures where applicable. Reconcile your books with GSTR-3B turnover and Form 26Q TDS deductions before filing.
ITR-4 Sugam: Presumptive Taxation
ITR-4 is the simplified return for residents (individuals, HUFs, partnership firms other than LLPs) opting for Section 44AD, 44ADA, or 44AE with total income up to ₹50 lakh. It is not available if you have foreign assets, more than one house property, capital gains, or income from racehorses.
ITR-5, ITR-6, ITR-7: Entity Returns
Beyond individuals and HUFs, the form set covers entities:
- ITR-5 — LLPs, partnership firms, AOPs, BOIs, business trusts, investment funds.
- ITR-6 — companies other than those claiming exemption under Section 11.
- ITR-7 — trusts, political parties, educational institutions, and others under Sections 139(4A) to 139(4F).
- Each entity form integrates with MCA V3 financials and SEBI/PFRDA disclosures.
Key Filing Deadlines for AY 2027-28
Most non-audit taxpayers must file by 31 July 2027. Audit cases (tax audit, transfer pricing) get until 31 October 2027 and 30 November 2027 respectively. Belated and revised returns are open until 31 December 2027, while updated returns under Section 139(8A) can be filed within 48 months of the relevant assessment year on payment of additional tax.
Conclusion
Pick your ITR based on the source of income, residential status, and total income threshold — not by what you filed last year. AIS, TIS, and Form 26AS now drive automated cross-checks, so an incorrect form choice triggers Section 143(1) adjustments within weeks. When in doubt, default to the higher-tier form (ITR-2 over ITR-1, ITR-3 over ITR-4) to keep disclosures complete.
