ITR-1, 2, 3, or 4?
Filing the wrong form gets your return marked defective. Answer a few questions about your income and residency — this covers the new AY 2026-27 rule letting ITR-1 and ITR-4 filers hold up to 2 house properties.
Residency & income
Business & other flags
ITR-1 (Sahaj)
- Resident and Ordinarily Resident
- Total income ≤ ₹50L
- 1 house property (≤ 2 allowed)
- No business/professional income
- Capital gains within the simple ITR-1 ceiling
A recommendation for planning, not a filing guarantee — edge cases (clubbed income, multiple business heads, specific Schedule requirements) can shift the answer. Confirm on the e-filing portal or with a CA before filing.
The four forms, in one paragraph each
ITR-1 (Sahaj)
Resident and Ordinarily Resident only, total income up to ₹50L, salary/pension + up to 2 house properties + simple LTCG (≤ ₹1.25L under Section 112A, no losses to carry forward) + other sources. No business income, no director/unlisted shares, no foreign assets.
ITR-4 (Sugam)
Everything ITR-1 allows, PLUS business or professional income — but only if declared under the 44AD/44ADA/44AE presumptive scheme, and you're not a partner in a firm.
ITR-2
No business income, but you don't fit ITR-1 — NRI/RNOR, income over ₹50L, more than 2 house properties, capital gains/losses beyond ITR-1's ceiling, foreign income/assets, or you're a director/hold unlisted shares.
ITR-3
Business or professional income NOT under the presumptive scheme (books of account required), or you're a partner in a firm. The catch-all for anyone who doesn't fit the other three.
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