Which ITR form should I file? ITR-1 vs ITR-2 vs ITR-3 vs ITR-4, and what to do if you are late
Short answer. Salary, up to two house properties, interest and listed-equity long-term gains up to ₹1.25 lakh: ITR-1. Any other capital gains, foreign assets, a directorship, unlisted shares or income above ₹50 lakh: ITR-2. Business or professional income with regular books, F&O or intraday trading: ITR-3. Presumptive income: ITR-4. Non-residents can use only ITR-2 or ITR-3.
ITR-1, ITR-2, ITR-3 and ITR-4: what is the difference?
The forms below are those notified for AY 2026-27, that is, income earned in FY 2025-26.
| Form | Who it is for | You cannot use it if |
|---|---|---|
| ITR-1 (Sahaj) | Resident and ordinarily resident individual with total income up to ₹50 lakh from salary or pension, up to two house properties, other sources such as interest, long-term gains on listed equity and equity funds up to ₹1.25 lakh, and agricultural income up to ₹5,000 | You are a company director, hold unlisted shares or foreign assets, earn foreign income, have any short-term gain, long-term gain above ₹1.25 lakh or capital loss to carry forward, have tax deferred on start-up ESOPs, or have business income |
| ITR-2 | Individuals and HUFs without business or professional income: all capital gains, more than two house properties, foreign assets and income, directors, unlisted shares, income above ₹50 lakh, non-residents and RNORs | You have any business or professional income |
| ITR-3 | Individuals and HUFs with business or professional income under regular books, including F&O and intraday trading and partners in firms | — |
| ITR-4 (Sugam) | Resident individuals, HUFs and firms other than LLPs with total income up to ₹50 lakh and presumptive income (formerly s.44AD, 44ADA, 44AE), plus salary, up to two house properties, other sources and long-term equity gains up to ₹1.25 lakh | Any ITR-1 exclusion applies, or your receipts exceed the presumptive limits |
Two changes are recent. Long-term gains up to ₹1.25 lakh came into ITR-1 and ITR-4 from AY 2025-26, and the second house property from AY 2026-27 (CBDT Notification 45/2026 of 30 March 2026).
Should I file ITR-1 or ITR-2? A decision list
- Any business or professional income, including freelancing, F&O or intraday trades? Use ITR-4 if you declare presumptive income and meet its conditions; otherwise ITR-3. Freelancers can read our GST and 44ADA guide.
- Non-resident or RNOR? ITR-2, or ITR-3 with business income. See our NRI guide.
- Any of these? Short-term capital gains, long-term gains above ₹1.25 lakh, a capital loss, foreign shares or RSUs, a directorship, unlisted shares, more than two house properties, income above ₹50 lakh. Use ITR-2.
- None of the above? ITR-1.
The form follows the year's facts, so it can change from one year to the next. Before filing, settle the regime choice with the tax-regime calculator.
Belated, revised and updated returns: what are the deadlines?
For FY 2025-26 (AY 2026-27) the 31 July and 31 August due dates passed without an extension. If you missed yours, the belated route is still open.
| Return | Last date | What it costs |
|---|---|---|
| Original: ITR-1 and ITR-2 | 31 July 2026 | Nothing extra |
| Original: ITR-3 and ITR-4, no audit | 31 August 2026 | Nothing extra |
| Original: audit cases | 31 October 2026 | Nothing extra |
| Belated | 31 December 2026 | Late fee of ₹5,000 (₹1,000 if total income is up to ₹5 lakh), plus interest on unpaid tax |
| Revised | 31 March 2027 | No fee until 31 December 2026; after that ₹5,000 (₹1,000 if total income is up to ₹5 lakh) |
| Updated (ITR-U) | 31 March 2031 | Additional tax of 25%, 50%, 60% or 70% of the extra tax and interest, rising with each year of delay |
Three things to know:
- A belated return costs more than the late fee. Capital and business losses of that year cannot be carried forward, and outside business income the old regime can be chosen only in a return filed on time.
- A revised return corrects an omission or mistake and replaces the earlier return. The window used to close on 31 December; Finance Act 2026 extended it to 31 March with a fee for the last three months.
- An updated return is for declaring more income. It cannot show a loss, reduce your tax or increase a refund. The window is 48 months from the end of the assessment year.
For income earned from 1 April 2026 the Income-tax Act, 2025 applies. It speaks of a "tax year" instead of previous and assessment years, and keeps all four return types in one place, Section 263 (formerly s.139). Forms for tax year 2026-27 will be notified separately, so check again before filing in 2027.
What happens after I submit? E-verify within 30 days
A return counts only once it is verified. E-verify within 30 days of uploading, using Aadhaar OTP, net banking or a bank or demat account code, or post a signed ITR-V to the Centralised Processing Centre in Bengaluru. If you verify after 30 days, the verification date becomes your filing date and the late-filing consequences follow. A return that is never verified is treated as not filed.
What if I used the wrong form?
The department can treat the return as defective and ask you to fix it, normally within 15 days of the notice. If you do not respond, the return becomes invalid. The remedy is simple: file a revised return in the correct form. Our note on ITR mistakes that trigger notices lists the other common slips.
FAQ
Should I file ITR-1 or ITR-2 if I sold shares or mutual funds?
ITR-3 vs ITR-4: which one is for freelancers?
Can I file ITR-1 with two house properties?
I missed the ITR due date. What now?
Sources: Income Tax Department: returns applicable to individuals, AY 2026-27; CBDT Notification 45/2026 (TaxGuru); ClearTax: changes in ITR forms; ClearTax: due dates; ClearTax: fee on revised returns; ClearTax: Section 263. All checked 19 Sep 2026. Education only, not tax advice for your situation.
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