Which ITR Form Should You File?
Answer a few questions about your income and see whether ITR-1, ITR-2, ITR-3 or ITR-4 applies for assessment year 2026-27, and why. Built for traders and investors. Runs in your browser; nothing is uploaded.
How the form is chosen
- ITR-1 and ITR-4 are the restricted forms
- They are for residents with total income up to ₹50 lakh and a limited set of income types. ITR-1 covers salary, pension, one house property and other sources. ITR-4 covers the same plus business income computed under the presumptive schemes, and allows up to two house properties.
- Anything outside that goes to ITR-2 or ITR-3
- ITR-2 is for individuals and HUFs without business income. ITR-3 is for those with business or profession income, including F&O and intraday trading on actual accounts.
- Disqualifiers for ITR-1 and ITR-4
- Non-resident status, income above ₹50 lakh, agricultural income above ₹5,000, foreign assets or income, being a director, unlisted equity shares, brought-forward losses, ESOP tax deferral, and capital gains beyond the ₹1.25 lakh Section 112A limit.
Common questions
Which ITR form should an F&O or intraday trader file?
ITR-3, because F&O and intraday trading are business income and you report profit on actual accounts. ITR-4 is only for income computed under the presumptive schemes of Sections 44AD, 44ADA or 44AE, and it cannot be used if you have short-term capital gains, foreign assets, brought-forward losses or several other disqualifiers.
Which form do I use for crypto?
Crypto and other virtual digital asset income is reported in Schedule VDA, which is available in ITR-2 and ITR-3 but not in ITR-1 or ITR-4. Use ITR-2 if you have no business income, and ITR-3 if you have business income or treat crypto trading as a business.
Who can use ITR-1 (Sahaj)?
A resident individual (other than not ordinarily resident) with total income up to Rs 50 lakh from salary or pension, one house property and other sources, agricultural income up to Rs 5,000, and long-term capital gains on listed equity under Section 112A up to Rs 1.25 lakh. It cannot be used by HUFs, directors, or anyone with foreign assets, unlisted shares, brought-forward losses or short-term capital gains.
Can I file ITR-3 even if I qualify for ITR-4?
Yes. ITR-4 is optional, and an eligible taxpayer can choose ITR-3 instead. Many traders prefer ITR-3 when they want to report actual accounts or carry forward losses, which ITR-4 does not allow.
Why would my capital gains push me to ITR-2?
ITR-1 and ITR-4 only allow long-term gains on listed equity under Section 112A up to Rs 1.25 lakh. Short-term gains, larger long-term gains, or gains on property, gold, debt funds and unlisted shares all need ITR-2, or ITR-3 if you also have business income.
Which assessment year do these rules cover?
Assessment year 2026-27, for income earned in FY 2025-26, following the Income Tax Department's published guidance on the e-filing portal. Form rules change from year to year, so check the portal for the current year before you file.