Question 1

What is the difference between ITR-1 and ITR-2?

Accepted Answer

ITR-1 (Sahaj) is for resident individuals with income up to ₹50L from salary, up to two house properties, and interest. ITR-2 is for individuals with disqualifying capital gains, more than two properties, foreign income, or income above ₹50L. From AY 2026-27, ITR-1 also allows an aggregate LTCG within ₹1.25L from listed equity/equity MFs, and the house property limit rose from one to two.

Question 2

Can I file ITR-1 if I have sold mutual funds?

Accepted Answer

From AY 2026-27, yes — if your LTCG from listed equity shares and equity-oriented mutual funds is up to ₹1.25 lakh, you can report it in ITR-1. If LTCG exceeds ₹1.25L, or if you have STCG or gains from debt funds/property, you must use ITR-2.

Question 3

Who must file ITR-2 instead of ITR-1?

Accepted Answer

You must file ITR-2 if: (1) income exceeds ₹50L, (2) you have any short-term capital gain, long-term gains above ₹1.25L, or gains from property/gold/debt funds, (3) you own more than two house properties, (4) you have foreign assets, foreign income or signing authority abroad, (5) you are a director in a company, (6) you have unlisted equity shares, (7) you are an NRI or not ordinarily resident, (8) you transferred crypto or another virtual digital asset, or (9) you have losses to carry forward or brought-forward losses to set off.

Question 4

Is ITR-2 more complex than ITR-1?

Accepted Answer

Yes. ITR-2 has more schedules including Schedule CG (capital gains), Schedule AL (assets and liabilities for income above ₹50L), and Schedule FSI (foreign source income). It requires more details but is still manageable with proper documentation.

Question 5

What is the deadline for ITR-1 and ITR-2 for AY 2026-27?

Accepted Answer

July 31, 2026 for both ITR-1 and ITR-2 (FY 2025-26, AY 2026-27). Belated return deadline is December 31, 2026. Revised return deadline is March 31, 2027 (extended by Budget 2026).

Feature	ITR-1 (Sahaj)	ITR-2
Who can file	Resident individuals only	Individuals and HUFs
Salary income	Up to ₹50L	Any amount
House property	One property only	Multiple properties
Capital gains (equity/MF)	LTCG up to ₹1.25L (new from AY 2026-27)	Any amount, any type
Capital gains (property/gold)	Not allowed	Allowed
Foreign income/assets	Not allowed	Allowed (Schedule FSI)
Director in company	Not allowed	Allowed
Unlisted shares	Not allowed	Allowed
NRI/RNOR	Not allowed	Allowed
Schedule AL (assets)	Not required	Required if income > ₹50L
Complexity	Simple — 1 page	Moderate — multiple schedules
Filing deadline	July 31, 2026	July 31, 2026

Feature	ITR-1 (Sahaj)	ITR-2
Who can file	Resident individuals only	Individuals and HUFs
Salary income	Up to ₹50L	Any amount
House property	One property only	Multiple properties
Capital gains (equity/MF)	LTCG up to ₹1.25L (new from AY 2026-27)	Any amount, any type
Capital gains (property/gold)	Not allowed	Allowed
Foreign income/assets	Not allowed	Allowed (Schedule FSI)
Director in company	Not allowed	Allowed
Unlisted shares	Not allowed	Allowed
NRI/RNOR	Not allowed	Allowed
Schedule AL (assets)	Not required	Required if income > ₹50L
Complexity	Simple — 1 page	Moderate — multiple schedules
Filing deadline	July 31, 2026	July 31, 2026

ITR-1 vs ITR-2 — Which Form to File?

Frequently Asked Questions

Not sure which form applies to you?

ITR-1 vs ITR-2 — Which Form to File?

Frequently Asked Questions

Not sure which form applies to you?