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Which Form I have to fill - ITR1 or ITR2

ITR 334 views 3 replies

Hello,

I am salaried person and having a yearly income of 30lacs. I had long term capital gains of 2 lacs from equity stocks along with short term capital gains from debt funds. I also got dividend from stock.

I am confused b/w ITR1 and ITR2 as both mention the capital gains as eligibility. 



Could you please suggest which ITR I have to submit.

Replies (3)

@ Manish

You have answered your own question in the screenshots you have posted.

Obviously, you have to file using ITR-2, since your LTCG exceeds 1.25 Lakh + you have STCG as well.

The main trigger for switching from ITR-1 to ITR-2 is capital gains. If you sold shares, mutual funds, property, or any capital asset during FY 2025-26, you need ITR-2. Also use ITR-2 if you have more than one house property, income from foreign sources, a directorship, or total income above Rs. 50 lakh. ITR-1 (Sahaj) is for residents with salary, one house property, and other sources like FD interest, all under Rs. 50 lakh.
CBDT notified updated forms for AY 2026-27 with a few changes: https://taxgarden.in/blog/new-itr-forms-ay-2026-27-cbdt-notification-key-changes

The main threshold for AY 2026-27 is Rs 1.25 lakh in long-term capital gains (LTCG) from listed equity shares or equity mutual funds.

Use ITR-1 (Sahaj) if:
- Income from salary, one house property, and other sources only
- LTCG from equity shares or equity MF does not exceed Rs 1.25 lakh in FY 2025-26
- Total income does not exceed Rs 50 lakh
- No business or professional income

You must file ITR-2 if any of the following apply:
- LTCG from listed equity or equity MF exceeds Rs 1.25 lakh
- You have any STCG from shares or mutual funds (any amount triggers ITR-2)
- You hold unlisted shares
- You are a director in any company
- Income from more than one house property
- Foreign income or foreign assets
- TDS deducted under Section 194N (cash withdrawals above threshold)

If you also have business income, it becomes ITR-3, or ITR-4 if you are under presumptive taxation (44AD, 44ADA, 44AE) and total income is within Rs 50 lakh.

For the complete eligibility criteria for all ITR forms AY 2026-27 including the capital gains schedule changes in the new forms, this [ITR forms guide](https://taxgarden.in/blog/new-itr-forms-ay-2026-27-cbdt-notification-key-changes) covers all the conditions with examples.


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