The Income Tax Department has officially released Excel utilities for ITR-1 (Sahaj) and ITR-4 (Sugam) for AY 2025-26
A Major Update for Taxpayers
The Income Tax Department has rolled out Excel-based utilities for ITR-1 and ITR-4, making it easier for taxpayers to file their income tax returns for FY 2024-25. These utilities are now available for download on the official e-filing portal, allowing eligible taxpayers to prepare and submit their returns efficiently.
This update comes after the ITR filing deadline was extended to September 15, 2025, giving taxpayers additional time to adjust to new changes in tax forms and portal upgrades.
Table of Contents
Who Can File ITR-1 and ITR-4?
ITR-1 (Sahaj): Simplified Filing for Salaried Individuals
ITR-1 is designed for resident individuals with a total income up to ₹50 lakh, including:
- Salary income
- Income from one house property
- Other sources (such as bank interest)
- Long-term capital gains (LTCG) up to ₹1.25 lakh under Section 112A
However, ITR-1 cannot be used if the taxpayer has:
- Taxable capital gains
- Short-term capital gains
- Sold property
- Foreign assets or income
ITR-4 (Sugam): For Business and Professional Income
ITR-4 is meant for individuals, Hindu Undivided Families (HUFs), and firms (excluding LLPs) who opt for the presumptive income scheme under Sections 44AD, 44ADA, or 44AE.
Eligible taxpayers include those earning:
- Business income
- Professional income
- Long-term capital gains up to ₹1.25 lakh under Section 112A
However, ITR-4 cannot be used by:
- Company directors
- Individuals with unlisted shares
- Taxpayers with foreign assets or income
Key Changes in ITR-1 and ITR-4 for AY 2025-26
1. New Validation Rules for ITR-1
A major update in ITR-1 prevents taxpayers from filing under this form if their TDS deductions fall under certain sections, including:
- 194B (Lottery winnings)
- 194BB (Horse race winnings)
- 194S (Crypto transactions)
- 194LA (Property compensation)
This ensures that taxpayers with special rate incomes file under ITR-2 or other appropriate forms, reducing errors and defective return notices.
2. Extended Deadline for Filing
The ITR filing deadline has been extended to September 15, 2025, giving taxpayers more time to adjust to new filing requirements and portal upgrades.
3. Improved System Integration
The Income Tax Department has enhanced its e-filing portal, ensuring better system readiness and faster processing of returns.
How to Download and Use the Excel Utilities
Taxpayers can download the Excel utilities for ITR-1 and ITR-4 from the official e-filing portal.
Step-by-Step Guide:
- Visit the Income Tax e-filing portal.
- Go to the ‘Downloads’ section.
- Select ITR-1 or ITR-4 Excel Utility.
- Download the file and fill in the required details.
- Upload the completed form on the portal to complete the filing process.
Future Outlook: What’s Next for Taxpayers?
With the new Excel utilities, taxpayers can expect:
- Smoother filing experience
- Reduced errors in tax returns
- Better compliance with updated tax rules
Experts recommend early filing to avoid last-minute issues and ensure timely tax compliance.
Conclusion: A Step Toward Simplified Tax Filing
The release of Excel utilities for ITR-1 and ITR-4 marks a significant improvement in India’s tax filing system. With new validation rules, extended deadlines, and enhanced portal integration, taxpayers can now file their returns more efficiently.
As the deadline approaches, it’s crucial for taxpayers to understand eligibility criteria, download the correct forms, and file their returns on time.
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