ITR forms for AY2026-27 notified: Which one should you use?
What's the story
The Indian government has released the Income Tax Return (ITR) forms for Assessment Year (AY) 2026-27. The new forms include ITR-1 to ITR-7, along with the ITR-V (verification form) and ITR-U (updated return form). Taxpayers such as individuals, pensioners, and professionals can now use these forms to file their income tax returns by July 31, 2026.
Act alignment
What are the key features of new ITR forms?
Himank Singla, a partner at SBHS & Associates, clarified that the ITR forms for FY 2025-26 are aligned with the Income Tax Act of 1961. He said these forms will be in accordance with the law as amended by Finance Act 2026. This means taxpayers will continue to see terms like 'Assessment Year' and 'Previous Year,' not 'Tax Year.'
Filing criteria
Who can use ITR-1 (Sahaj)?
ITR-1 (Sahaj) is for resident individuals with a total income of up to ₹50 lakh from salary or pension, one house property, and other sources like interest. It can also be used if you have long-term capital gains under Section 112A up to ₹1.25 lakh, provided there are no carry forward capital losses. However, this form isn't applicable for those with business/professional income, more than one house property, high capital gains or foreign assets.
ITR-2 eligibility
Who should use ITR-2?
ITR-2 is for individuals and Hindu Undivided Families (HUFs) without business/professional income. It applies to those with capital gains, more than one house property, foreign income/assets, and NRIs. In simple terms, if you do not qualify for ITR-1 and don't have business/professional income, ITR-2 is the right form to use.
Business returns
What about ITR-3 and ITR-4 (Sugam)?
ITR-3 is for individuals and HUFs with income from a proprietary business/profession. It applies when the taxpayer has regular books of accounts, usually when total income exceeds ₹50 lakh. On the other hand, ITR-4 (Sugam) is for resident individuals, HUFs, and firms with total income up to ₹50 lakh who choose presumptive taxation under Sections 44AD/44ADA/44AE. It can also include salary/pension income, one house property, and other sources.
Non-individual returns
Tax forms for non-individual entities
ITR-5, 6, and 7 are tax forms for non-individual entities in India. ITR-5 is for partnership firms, LLPs, AOPs, and co-operative societies. ITR-6 is only for companies (public/private) not claiming any exemptions for charitable or religious purposes. Meanwhile, ITR-7 is exclusively for those required to file under Section 139 such as trusts, political parties, and scientific research associations.
Correction opportunity
What is updated return form (ITR-U)?
The updated ITR-U form gives taxpayers a chance to correct mistakes or omissions in the previously filed returns. As per the notified rules, taxpayers can file an updated return within 48 months from the end of the relevant assessment year. This provision was introduced in 2022 for taxpayers who missed filing their original return, forgot to report income, or need to correct details in a filed ITR.