Types of ITR Forms for Tax Year 2026-27 (AY 2027-28)

If you don’t know where to start, your income tax return can feel like a maze, and finding the appropriate form is usually the roughest part of the whole process. For the financial year 2026-27 (assessment year 2027-28), the Income Tax Department has provided seven different types of ITR forms, each applicable to a different category of taxpayer.

Every form is customised according to your income, thresholds and residency status, whether you are a salaried professional, a business owner or a larger firm. This guide takes you through the different ITR forms available this year and helps you to work out which one genuinely fits your situation.

Why choosing the correct ITR form actually matter

The Income Tax Return (ITR) form is a document that records your income, deductions, and tax liability for a financial year. Getting the form wrong is not merely a paperwork mistake. It can lead to your return being treated as defective, which means that you will need to correct and resubmit it within a set timeframe. Knowing the types of ITR available each year helps you sidestep this problem before it starts.

The seven ITR form types explained

If you are wondering which ITR form to file, here are seven ITR types currently in use, split between individual taxpayers and entities such as firms and companies.

ITR-1 and ITR-4: For simple tax situations

These forms are suitable for taxpayers with relatively straightforward income sources.

ITR-1 (Sahaj)

The ITR-1, popularly referred to as “Sahaj,” is the easiest and most popular ITR form for salaried individuals. The ITR-1 can be filed by residents who have a total income of less than Rs.50 Lakh and derive their income from:

This form is generally ideal for salaried employees, pensioners, and first-time taxpayers with straightforward income sources.

Also Read: Can I Get a Home Loan Without a Salary Slip?

ITR-4 (Sugam)

ITR-4, popularly known as Sugam, is meant for resident individuals, HUFs, and partnership firms (excluding LLPs) opting for the presumptive taxation scheme under Sections 44AD, 44ADA, or 44AE of the Income Tax Act.

Generally, it can be used if:

This form simplifies tax filing for small businesses and professionals by allowing income to be declared at prescribed percentages instead of maintaining detailed books of accounts.

ITR-2 and ITR-3: For more complex financial situations

These forms are meant for individuals and HUFs with more detailed income sources or reporting requirements.

ITR-2

ITR-2 is for people and Hindu Undivided Families (HUFs) who have complex financial situations but do not earn income from business or profession. If you have the following, then you should file ITR-2:

It is commonly used by high-income salaried individuals, investors, and NRIs (subject to eligibility).

ITR-3

ITR-3 is for individuals and HUFs having income from business or profession. Includes proprietors, freelancers, consultants, doctors, lawyers, chartered accountants and other professionals who maintain books of accounts regularly.

You may also need to file ITR-3 if you have:

ITR-3 accommodates multiple income sources and is suitable for taxpayers with more detailed financial reporting requirements.

ITR-5 to ITR-7: For entities and organisations

These income tax forms are not meant for individual taxpayers

ITR-5

ITR-5 is meant for various entities other than individual taxpayers. It is filed by:

Individuals, HUFs, and companies are not eligible to use this form.

ITR-6

ITR-6 is applicable to companies that are required to file an income tax return but do not claim exemption under provisions relating to income from charitable or religious purposes.

The form must be filed electronically and is generally used by domestic and foreign companies carrying on business operations in India.

ITR-7

ITR-7 is reserved for entities required to file returns under specific provisions of the Income Tax Act. It is generally filed by:

This form enables eligible organisations to report their income while claiming tax exemptions available under the law.

ITR forms and their connection to home loan applications

If you are planning for a home loan, your ITR does more than just settle your tax dues. Lenders accept it as proof of your income and ability to repay, along with your home loan document list, which generally contains pay cheque slips, bank statements, and identity proof. Salaried applicants usually file ITR-1 or ITR-2 as these show wage income clearly.

Why Grihum Housing Finance is a reliable partner for your home loan journey

Keeping your tax records organised is an important part of preparing for a home loan, and Grihum Housing Finance helps make that process simpler. From explaining the role of ITRs in loan applications to helping borrowers understand the documentation required, our experts provide clear guidance at every stage.

Grihum Housing Finance offers affordable loan options with competitive interest rates, making homeownership more accessible for borrowers from diverse income categories. Before applying for a loan, borrowers can also use our home loan EMI Calculator to estimate their monthly repayments and plan their budget with confidence.

Also Read: Pradhan Mantri Awas Yojana Urban Beneficiary List 2026

Summary

Once you know your income sources and residential status, choosing from the several ITR form types is not complex. ITR-1 and ITR-4 are for simple instances, ITR-2 and ITR-3 are for cases with higher complexity in finances and ITR-5 to ITR-7 are meant for entities and not for individuals.

Get this correct the first time, and you avoid errors, delays and unnecessary correspondence with the tax authorities. And if you are planning to take a home loan this year, a lender like Grihum Housing Finance can help you through the procedure with much less stress.