The Income tax department on Friday announced that the Excel utility for filing Income Tax Returns (ITRs) using forms ITR-1 and ITR-4 for Assessment Year 2025–26 is now available.“The Excel Utility for ITR-1 and ITR-4 for AY 2025-26 has been enabled and is now available for taxpayers,” the department said in a post on X.With the release of these utilities, taxpayers can now begin filing their returns for income earned during the financial year 2024–25.This year, the deadline for filing ITR-1 and ITR-4 has been extended to September 15, from the usual July 31, giving taxpayers additional time to comply.The forms were officially notified on April 29. However, the enabling of the filing utilities was delayed due to “structural and content revisions” introduced this year. According to the department, additional time was needed for system development, integration, and testing.Himank Singla, Partner at SBHS & Associates, welcomed the move. “It’s a big relief to see that the Excel Utilities for ITR-1 and ITR-4 for Assessment Year 2025–26 have been released. I have already filed ITR-4 using the utility, and the process was smooth. There are no major changes in the ITR-4 schema compared to last year,” he said, as quoted an ET report.However, he highlighted a significant change in the ITR-1 schema. “A new validation rule has been added: if certain TDS section codes appear—like 194B, 194BB, 194S, 194LA, 195, 196A, 194Q, or 194R—the utility will disqualify the return from being filed under ITR-1. This is particularly relevant for those earning from sources such as online gaming, crypto, lotteries, or property transfers,” Singla explained.“This is a very welcome and practical change. In earlier years, many filers unknowingly submitted ITR-1 with such income types, only to receive defective return notices. This rule prevents incorrect filings at the source and saves time and confusion,” he added.Who can file ITR-1 and ITR-4?
- ITR-1 is available for resident individuals (excluding “not ordinarily resident”) with total income up to Rs 50 lakh. Eligible income sources include salary, one house property, interest income, long-term capital gains under Section 112A (up to Rs 1.25 lakh), and agricultural income up to Rs 5,000. Company directors, individuals with unlisted equity investments, income-tax deferral on ESOPs, foreign assets, or deductions under TDS section 194N are not eligible.
- ITR-4 applies to individuals, HUFs, and firms (excluding LLPs) with income up to Rs 50 lakh, and income from business or profession under presumptive taxation (Sections 44AD, 44ADA, 44AE), as well as long-term capital gains under Section 112A (up to Rs 1.25 lakh).
