ITR filing 2026: When should a salaried taxpayer file ITR-2 instead of ITR-1?

Salaried taxpayers with total annual income up to ₹50 lakh can file ITR-1 only if income is from salary, pension, up to two house properties, long-term capital gains under Section 112A up to ₹1.25 lakh, agriculture income up to ₹5,000, and certain interest/clubbed income.

ITR-2 is mandatory if salaried taxpayer's income exceeds ₹50 lakh, tax on ESOPs from an eligible start-up is deferred, taxpayer is a director in a company, has more than two house properties, long-term capital gains over ₹1.25 lakh, short-term capital gains, or held unlisted equity shares in the previous year.

Filing the correct ITR form is required to avoid being flagged for defects; the e-filing portal helps in selection.