Income Tax Department Starts 2026 Filing Season with Release of ITR-1 and ITR-4 Excel Utilities

Income Tax Department Releases Excel Utilities for ITR-1 and ITR-4

The Income Tax Department has made available the excel utilities for ITR-1 and ITR-4 on its website, enabling eligible taxpayers to begin filing their income tax returns for the Financial Year 2025-2026 (Assessment Year 2026-27). This marks the commencement of the ITR filing season for the current assessment year.

An Income Tax Return (ITR) is a crucial form through which taxpayers disclose their income, deductions, and tax liability to the Income Tax Department. There are seven different ITR forms, with the applicable form varying depending on the taxpayer's category, nature of income, and level of earnings. Taxpayers must file their ITR by July 31 each financial year.

ITR-1 and ITR-4 Eligibility

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ITR-1, also known as Sahaj, can be filed by resident individuals (other than not ordinarily residents) with a total income up to Rs 50 lakh. The form is designed for taxpayers earning income from salary or pension, two house properties, other sources such as interest income, and agricultural income up to Rs 5,000. Taxpayers with long-term capital gains under Section 112A up to Rs 1.25 lakh can also use ITR-1.

ITR-4, or Sugam, is applicable for resident individuals, Hindu Undivided Families (HUFs), and firms other than Limited Liability Partnerships (LLPs) with a total income up to Rs 50 lakh and opting for the presumptive taxation scheme under Sections 44AD, 44ADA, or 44AE, and having long-term capital gains under Section 112A up to Rs 1.25 lakh.

Key Features and Benefits

The release of the excel utilities allows taxpayers to download the utility, fill in details offline, generate the JSON file, and upload it on the income tax e-filing portal for submission and verification. This early release of the utilities gives salaried taxpayers and small businesses more time to organize documents and complete return filing well before the July 31, 2026 deadline applicable for most non-audit cases.

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Comparison of ITR-1 and ITR-4

The Central Board of Direct Taxes (CBDT) had earlier notified the ITR forms for AY 2026-27 with several changes in reporting requirements, including additional disclosures related to long-term capital gains, buyback losses, and certain trading transactions.