Which ITR Form to File for Salary + Capital Gains (AY 2026-27)

Picking the wrong ITR form is the #1 reason returns get marked "defective" under Section 139(9). For FY 2025-26 (AY 2026-27), here's exactly which form to file based on your income mix — especially if you have salary plus capital gains.

ITR-1 (Sahaj) — only the simplest cases

• Resident individual, total income up to ₹50 lakh
• Income from salary / pension, one house property, and other sources (interest, dividend)
• Long-term capital gains under Section 112A up to ₹1.25 lakh (new for AY 2026-27) — allowed in ITR-1
• Not allowed if you have: short-term equity gains, F&O, crypto/VDA, foreign income/assets, more than one house, or are a director/unlisted-shareholder

ITR-2 — salaried with capital gains

This is the form most stock and mutual-fund investors should use. Pick ITR-2 if you have:

• Salary + any short-term capital gains (STCG) on equity / MF
• LTCG above ₹1.25 lakh on equity, or any LTCG on debt / property / gold
• More than one house property, or losses to carry forward
• Foreign assets, foreign income, or RNOR / NRI status
• Crypto / Virtual Digital Asset transactions (Schedule VDA)

ITR-2 has no business income — if you trade F&O or run a business, skip to ITR-3.

ITR-3 — salary + business / F&O / professional income

• F&O and intraday equity = business income (speculative for intraday, non-speculative for F&O) → ITR-3
• Freelancers, consultants, doctors, lawyers not opting 44ADA
• Partner in a firm receiving remuneration / interest

ITR-4 (Sugam) — presumptive small business / professional

• Resident individual / HUF / firm (not LLP) with income up to ₹50 lakh
• Presumptive business under Section 44AD (8%/6%) or profession under 44ADA (50%)
• Salary + presumptive income allowed, but no capital gains except LTCG 112A up to ₹1.25L

Quick decision table

• Salary only, income ≤ ₹50L → ITR-1
• Salary + STCG / large LTCG / crypto / 2 houses → ITR-2
• Salary + F&O / intraday / freelance (regular books) → ITR-3
• Salary + small business under 44AD/ADA → ITR-4

Still unsure? Run our Income Tax Calculator first to lock in your regime, then our team files the correct form for you from ₹499 — defect-notice free, guaranteed.