The CBDT notifies seven return forms each year. Broadly: ITR-1 (Sahaj) and ITR-4 (Sugam) are the simplified forms for small resident taxpayers; ITR-2 and ITR-3 are the full forms for individuals and HUFs (without and with business income respectively); ITR-5 covers firms, LLPs, AOPs and BOIs; ITR-6 covers companies; and ITR-7 covers trusts, political parties and institutions filing under Sections 139(4A)–(4D).
ITR-1 for AY 2026-27 is open to a resident (ordinarily resident) individual with total income up to ₹50 lakh from salary/pension, up to two house properties (relaxed from one), and other sources. From AY 2025-26 onwards, small long-term capital gains under Section 112A — up to ₹1.25 lakh from listed equity or equity mutual funds, with no capital loss to carry forward or set off — can be reported inside ITR-1 and ITR-4 instead of forcing an upgrade to ITR-2/ITR-3.
The common disqualifiers work as a checklist: any business income knocks out ITR-1/ITR-2; a directorship or unlisted equity shares knock out ITR-1/ITR-4; foreign assets or foreign income knock out ITR-1/ITR-4; agricultural income above ₹5,000 knocks out ITR-1/ITR-4; and RNOR or non-resident status knocks out both simplified forms. This tool walks those tests in order and lists every reason a simpler form is unavailable.
A resident (ordinarily resident) individual earns ₹18 lakh salary, owns one self-occupied house, and realised ₹80,000 LTCG on listed equity funds (Section 112A) with no capital losses. No business income, no foreign assets, not a director, no unlisted shares.
