Which ITR Form for AY 2026-27? Key Changes Explained
Late filer? (September 9, 2026): Picking the right form matters even after the due date. The non-audit deadlines for AY 2026-27 have passed, but a belated return under Section 139(4) in the correct form is accepted until December 31, 2026, subject to the Section 234F fee of Rs 5,000 (Rs 1,000 for total income up to Rs 5 lakh) and Section 234A interest. Filing in the wrong form can get the return treated as defective under Section 139(9), so use the selector below first. Tax Garden checks the form and files the belated return on a fixed fee.
Picking the wrong ITR form means your return gets processed as defective under Section 139(9), triggering a notice from the CPC, and it ranks among the common ITR filing mistakes that delay refunds and invite notices. With significant changes for AY 2026-27 (ITR 1 now covers two house properties, and non-audit business and professional filers get a 31 August due date), form selection errors are more likely than in prior years.
This guide covers every ITR form, who qualifies, and the changes that affect AY 2026-27 filing.
ITR Form Quick Reference
| Form | Who files | AY 2026-27 due date (original return) |
|---|---|---|
| ITR 1 (Sahaj) | Resident individual, income up to Rs 50 lakh from salary/pension, up to two house properties, other sources, 112A LTCG up to Rs 1.25 lakh | 31 July 2026 |
| ITR 2 | Individuals and HUFs without business or professional income | 31 July 2026 |
| ITR 3 | Individuals and HUFs with business or professional income | 31 August 2026 (non-audit), 21 November 2026 (audit) |
| ITR 4 (Sugam) | Resident individuals, HUFs and firms (not LLPs) with presumptive income, total income up to Rs 50 lakh | 31 August 2026 (non-audit) |
| ITR 5 | Firms, LLPs, AOPs, BOIs, artificial juridical persons | 31 August 2026 (non-audit), 21 November 2026 (audit) |
| ITR 6 | Companies not claiming Section 11 exemption | 21 November 2026 |
| ITR 7 | Trusts, political parties and others under Section 139(4A) to (4D) | 21 November 2026 (audit), 31 August 2026 (non-audit trusts) |
Transfer pricing cases (Form 3CEB) file by 30 November 2026.
ITR 1 (Sahaj): AY 2026-27 Changes
Who Can File ITR 1
ITR 1 applies to a resident individual with:
- Salary or pension income
- One or two house properties (key change, see below)
- Interest income (savings, FD, etc.)
- Other sources income
- Total income does not exceed Rs. 50 lakh
Change 1: ITR 1 Now Covers Two House Properties
Prior to AY 2026-27, ITR 1 was restricted to taxpayers with one house property. Owners of a second house (even if self-occupied or let out) were forced to move to ITR 2.
What changed: From AY 2026-27, ITR 1 accommodates up to two house properties. You can stay on ITR 1 if:
- You own two houses (any combination of self-occupied and let-out)
- You have no house property loss to carry forward and no brought-forward loss
- Total income does not exceed Rs 50 lakh
Who still needs ITR 2: If you own three or more properties, have foreign assets, or have capital gains other than Section 112A long-term gains up to Rs 1.25 lakh, you cannot use ITR 1 regardless of this change.
Change 2: Unrealised Rent in ITR 1
The house property section of ITR 1 has a field for unrealised rent (rent the tenant did not pay). Unrealised rent is excluded from the annual value under the Explanation to Section 23(1) read with Rule 4 of the Income-tax Rules. If you recover it later, it is taxed in the year of recovery under Section 25A.
Where to enter: In the house property section, after entering the rent, enter the uncollected amount in the "Unrealised Rent" row; the annual value is reduced accordingly.
Conditions under Rule 4 to exclude unrealised rent:
- The tenancy is bona fide
- The defaulting tenant has vacated, or steps have been taken to make him vacate
- The defaulting tenant is not in occupation of any other property of yours
- You have taken, or are taking, legal proceedings to recover the rent, or you satisfy the Assessing Officer that such proceedings would be useless
Who CANNOT Use ITR 1
- Agricultural income exceeds Rs. 5,000
- Director of a company
- Holds unlisted equity shares
- Has assets or signing authority outside India
- Has brought-forward losses
- TDS deducted under Section 194N (cash withdrawal above Rs. 1 crore)
ITR 2: No Major Changes for AY 2026-27
ITR 2 remains the form for resident and non-resident individuals and HUFs with:
- Capital gains (short-term or long-term)
- More than two house properties
- Foreign assets or foreign income
- Director of a company
- Unlisted equity shares
ITR 3: Extended Deadline for AY 2026-27
Who Files ITR 3
ITR 3 applies to:
- Individuals and HUFs with business or professional income not covered under presumptive taxation
- Partners in a firm (on their personal return, reporting firm income)
- Freelancers and professionals who keep books under Section 44AA instead of opting for presumptive taxation
- Business owners and professionals, whether or not their accounts need a tax audit
- Anyone with F&O or intraday trading income
Change 3: August 31, 2026 Due Date for Non-Audit Business Cases
The Finance Act 2026 amended Section 139(1) so that taxpayers with business or professional income whose accounts do not need an audit, and partners of non-audit firms, now have a due date of August 31 (earlier July 31). For AY 2026-27 that is August 31, 2026. This is a change in the law, not a one-time CBDT extension, and it covers ITR 3, ITR 4 and non-audit ITR 5 filers.
Who benefits:
- Professionals (doctors, lawyers, architects, CAs, consultants) with gross receipts below Rs. 50 lakh
- Small business owners with turnover below Rs. 1 crore who are not required to get accounts audited
Who does NOT get this extension:
- Taxpayers liable for tax audit under Section 44AB: ITR due November 21, 2026, and the audit report was due October 21, 2026 (extended by CBDT Circular 07/2026 from October 31 and September 30)
- Taxpayers with international transactions (Transfer Pricing cases): November 30, 2026
Deadline Timeline
ITR Filing Deadlines AY 2026-27
ITR 1, ITR 2
[PASSED] Salaried individuals, pensioners, capital gains and other non-business cases
ITR 3, ITR 4, ITR 5 (Non-Audit)
[PASSED] Business/professional income not requiring tax audit, due date set by Finance Act 2026
Tax Audit Report
Audit report under Section 44AB (Form 3CA/3CB with 3CD) due; extended from September 30 by CBDT Circular 07/2026
ITR (Audit Cases)
ITR for taxpayers whose accounts must be audited, including companies; extended from October 31 by CBDT Circular 07/2026 dated 28 September 2026
ITR (Transfer Pricing)
Taxpayers with international or specified domestic transactions requiring Form 3CEB
Belated Return
If you missed the deadline, belated returns can be filed until December 31, 2026, but you will owe the Section 234F fee (Rs 1,000 for income up to Rs 5 lakh, Rs 5,000 above Rs 5 lakh) and Section 234A interest (1% per month from the day after your due date)
Unrealised Rent in ITR 3
Like ITR 1, ITR 3 has an unrealised rent field in the house property schedule. If you own let-out property and a tenant has defaulted, enter the uncollected rent there. The same Rule 4 conditions apply.
ITR 4 (Sugam): Presumptive Income with Unrealised Rent Change
Who Files ITR 4
ITR 4 is for resident individuals, HUFs, and firms (excluding LLPs) opting for presumptive taxation under:
- Section 44AD: Business turnover up to Rs. 3 crore (cash receipts ≤ 5%)
- Section 44ADA: Professional receipts up to Rs. 75 lakh (cash receipts ≤ 5%)
- Section 44AE: Goods carriage vehicles (up to 10 trucks)
Unrealised Rent Field: Also in ITR 4
ITR 4 has the unrealised rent field as well. Presumptive taxpayers who also own let-out property can now record and deduct unrealised rent without switching to ITR 3.
ITR 4 Restrictions
Cannot use ITR 4 if:
- Turnover exceeds Rs. 3 crore (business) or Rs. 75 lakh (profession)
- Capital gains arise during the year, other than Section 112A long-term gains up to Rs 1.25 lakh
- Foreign income or assets exist
- Director of a company or holds unlisted shares
- Losses to be carried forward
ITR 5: Firms, LLPs, AOPs
No changes for AY 2026-27. ITR 5 covers:
- Partnership firms
- LLPs
- Association of Persons (AOP)
- Body of Individuals (BOI)
- Artificial Juridical Persons
Filing deadline: August 31, 2026 for firms and LLPs whose accounts are not required to be audited under the Income-tax Act or any other law (such as the LLP Act); November 21, 2026 for audit cases.
Common ITR Form Selection Mistakes
- Using ITR 1 with capital gains beyond the Section 112A Rs 1.25 lakh allowance, or with F&O and intraday trading income
- Using ITR 1 or ITR 4 while being a company director or holding unlisted shares
- Using ITR 4 for professional receipts above Rs 75 lakh, or when declaring profit below 50% of receipts under Section 44ADA
- Using ITR 2 when there is any business or professional income
AY 2026-27 Changes Summary
| Change | Forms affected |
|---|---|
| Up to two house properties allowed | ITR 1 |
| Due date for non-audit business and professional cases moved to 31 August | ITR 3, ITR 4, ITR 5 |
| Revised return window extended to 31 March 2027, with a Section 234I fee after 31 December 2026 | All forms |
Sources: Income Tax Act 1961 (Sections 10, 25A, 44AD, 44ADA, 44AE, 139); CBDT Notification on ITR Forms AY 2026-27; Income Tax Department Instructions for each ITR form. Verified against forms notified by CBDT. For taxpayer-specific advice, consult a Chartered Accountant.
