ITR Filing 2026: Which Income Tax Return Form Should Salaried Taxpayers and Freelancers Choose?

Choosing the correct Income Tax Return (ITR) form is the first and most critical step while filing returns for Assessment Year 2026-27. The Central Board of Direct Taxes (CBDT) notified all ITR forms on March 31, enabling individuals, businesses, and other entities to begin filing for Financial Year 2025-26.

Which Form Should Salaried Taxpayers Use?

Salaried taxpayers must file ITR-1 (Sahaj) if they are resident individuals with income up to INR 50 lakh from salary, two house properties, and interest income. A key change under the new Income Tax Act, 2026 allows long-term capital gains (LTCG) up to INR 1.25 lakh from listed equity and equity-oriented mutual funds to be reported in ITR-1. Gains exceeding this limit require filing ITR-2. ITR Filing 2026: Can You File Income Tax Return Now? Check Dates, Deadlines, Penalties and Key Benefits.

Which Form Should Freelancers Use?

Freelancers must file ITR-3 or ITR-4. Those opting for presumptive taxation under Section 44ADA can declare 50% of total receipts as taxable income. If tax liability exceeds INR 10,000, advance tax must be paid quarterly.

ITR Form Guide at a Glance

• ITR-1: Salaried individuals with income up to INR 50 lakh
• ITR-2: Individuals with capital gains
• ITR-3: Income from business or profession
• ITR-4: Business/profession income up to INR 50 lakh
• ITR-5: Firms, LLPs, AOPs, BOIs
• ITR-6: Companies
• ITR-7: Charitable trusts

The due date for ITR-1 and ITR-2 filers is July 31, 2026. ITR-3 and ITR-4 filers must file by August 31, 2026. Missing the deadline allows belated filing until December 31, 2026, though late fees and interest will apply.

(The above story first appeared on LatestLY on May 10, 2026 03:24 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).