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ITR Filing 2026: The Income Tax Department has introduced different forms, namely ITR-1 to ITR-7, based on the nature and complexity of the taxpayer’s income. In India, the most important Income Tax Return (ITR) forms range from ITR-1 to ITR-7. To choose the correct income tax return form, taxpayers must carefully consider their legal status (individual, partnership firm, or company), income level, and the specific heads under which income has been earned during the year.
The deadline of July 31, 2026, is only for salaried individuals, pensioners, and non-business individual investors (including HUFs) whose accounts do not require an audit. This category includes individuals who need to file the ITR-1 (Sahaj) or the ITR-2 form.
If you have doubts about how to file ITR 1 and ITR-2, here is a step-by-step guide. Also check who should file it and the last date to file it.
ITR Filing 2026: How to file income tax return forms 1 and 2, who should file and step-by-step guide
ITR-1, which is also called as Sahaj, is the simplest and most crucial ITR form exclusively for resident individual salaried taxpayers or pensioners having straightforward incomes.
ITR Form 1 applies to those with an annual income of up to Rs 50 lakh from salaries, pensions, one or two residential properties, and other sources (e.g., bank interest). It is not valid for business owners or non-residents.
Income Tax Return Form -1 can be filed by resident individuals with a total income not exceeding Rs 50 lakh during that financial year. ITR-1 can be filed if income is covered under one or more of the following heads:
- Salary or pension income
- Income from up to 2 house properties
- Income from other sources, such as savings interest or FD interest
- Clubbed income of spouse or minor child, if it falls under the same permitted heads
- Agricultural income up to Rs 5,000
- LTCG under Section 112A up to Rs 1.25 lakh, with no carried-forward capital loss
ITR-1 cannot be used by a person who:
a) is a Director in a company
b) has a short-term capital gain
c) has Long-term capital gain u/s 112A of Income Tax Act,1961 exceeding ₹1,25,000
d) has held any unlisted equity shares at any time during the previous year
e) has any asset (including a financial interest in any entity) located outside India
f) has signing authority in any account located outside India
g) has income from any source outside India
h) is a person in whose case tax has been deducted u/s 194N of the Income Tax Act,1961
i) is a person in whose case payment or deduction of tax has been deferred on an ESOP
j) has any brought forward loss or loss to be carried forward under any head of income
k) has total income exceeding Rs 50 lakhs (excluding LTCG u/s 112A up to Rs 1,25,000)
ITR-2 form applies to individuals (Resident or Non-Resident) and Hindu Undivided Families (HUFs) deriving income other than income chargeable under the head “Profits and Gains of Business or Profession”.
It can be filed where the assessee has income from one or more of the following sources:
- Income under the head “Salaries” or “Pension”.
- Income from house property, including income from more than two house properties.
- Income chargeable under the head “Capital Gains”, whether short-term or long-term,
- Income from other sources, including winnings from lotteries, racehorses, betting, gambling, etc.
- Agricultural income exceeding Rs 5,000.
- ITR 2 Form can be filed irrespective of the quantum of total income, including cases where total income exceeds Rs 50 lakhs.
Who is not eligible to file ITR-2 for AY 2026-27?
ITR-2 cannot be filed by any individual or HUF whose total income for the year includes income from profit and gains from business or profession, and also who has income in the nature of:
- interest
- salary
- bonus
- commission or remuneration, by whatever name called, due, or received from the firm taxable under the head “Profits and Gains of Business or Profession.
How to file ITR Form 1? Step-by-step guide
Step 1: Log into the Income Tax e-Filing Portal using your PAN as user ID and password.
Step 3: Choose the appropriate Assessment Year and select Online as the filing mode.
Step 4: Select ITR-1 after confirming your status as an individual.
Step 5: Verify personal information, gross total income, tax deductions, and tax paid against your AIS and Form 16.
Step 6: Reconcile and confirm the data across all tabs, then proceed to the tax computation summary.
Step 7: Pay any remaining tax liability if applicable, submit the return, and immediately e-verify using Aadhaar OTP or net banking.
How to file ITR Form 2? Step-by-step guide
Step 1: Go to the Income Tax e-Filing Portal and log in using your user ID (PAN) and password.
Step 2: Click on e-File, select Income Tax Returns, and click File Income Tax Return.
Step 3: Choose the current Assessment Year and pick Online as your filing mode.
Step 4: Select ITR-2 from the form choices after starting a new filing.
Step 5: Review your pre-filled data in the different schedules (like salary, house property, and capital gains) and update any missing numbers.
Step 6: Preview the completed tax return, submit it, and finish the e-Verification process (using Aadhaar OTP or net banking)
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