🚨 Attention Taxpayers: Excel Utility for ITR-1 and ITR-4 for AY 2025-26 Now Available
By Aaerm Law Associates | Ahmedabad, Gujarat | May 30, 2025
The Income Tax Department has released the Excel utility for Income Tax Returns (ITR) 1 and 4 for the Assessment Year (AY) 2025-26, enabling taxpayers to begin filing their returns for the Financial Year (FY) 2024-25. These utilities are now available for download on the official Income Tax e-filing portal.
📌 ITR-1 (Sahaj) – For Resident Individuals
ITR-1 is applicable for resident individuals (other than not ordinarily resident) with:
- Total income up to ₹50 lakh
- Income from salary, one house property, other sources (e.g., interest), and agricultural income up to ₹5,000
- Long-term capital gains (LTCG) under Section 112A up to ₹1.25 lakh
The Excel-based utility for ITR-1 (Version 1.0) is approximately 3.35 MB in size and includes:
- Utility Excel Based (Version 1.0)
- JSON Schema (16.8 KB)
- Validations (444 KB)
These documents were first released on May 30, 2025.
📌 ITR-4 (Sugam) – For Residents with Business/Profession Income
ITR-4 is designed for resident individuals, Hindu Undivided Families (HUFs), and firms (excluding LLPs).
- Total income up to ₹50 lakh
- Income from business and profession computed under Sections 44AD, 44ADA, or 44AE
- Long-term capital gains under Section 112A up to ₹1.25 lakh
The Excel-based utility for ITR-4 (Version 1.0) is approximately 4.61 MB in size and includes:
- Utility Excel Based (Version 1.0)
- JSON Schema (25.9 KB)
- Validations (544 KB)
These documents were first released on May 30, 2025.
🛠️ How to Download and Use the Excel Utilities
- Visit the Official Portal: Go to incometax.gov.in.
- Select the Relevant Assessment Year: Choose AY 2025-26.
- Download the Utility: Under the ‘Download’ section, select the ‘Utility’ link under the ‘Common Offline Utility (ITR 1 to ITR 4)’ section.
- Extract and Install: Extract the downloaded zip folder and install the utility.
- Fill in the Details: Open the utility and fill in the required details.
- Validate and Generate XML: Validate the data and generate the XML file.
- Upload the XML: Log in to your e-filing account and upload the generated XML file.
✅ Key Features of the Updated ITR Forms
- LTCG Reporting: ITR-1 now allows reporting of long-term capital gains under Section 112A up to ₹1.25 lakh.
- Enhanced Deductions Section: New drop-down menus for deductions under sections like 80C, 80GG, etc., to reduce errors.
- Detailed TDS Reporting: Section-wise TDS disclosures are now required, increasing transparency.
- Bank Account Reporting: All bank accounts held in India during the previous year must be reported, except dormant accounts.
📅 Important Dates to Remember
- Last Date for Filing: July 31, 2025 (for individuals not requiring audit).
- Form 10-IEA: If opting out of the new tax regime, Form 10-IEA must be furnished.
💡 Tips for a Smooth Filing Experience
- Avoid Early Filing: Tax experts advise delaying filing until after June 15, 2025, to ensure all documents like Form 16 are available.
- Use Pre-filled Data: Utilize the pre-filled data feature in the offline utility to reduce errors.
- Cross-Verify Details: Ensure all details are accurate before submission to avoid penalties.
📌 Who Should Use ITR-1 and ITR-4?
- ITR-1 (Sahaj): Resident individuals with total income up to ₹50 lakh from salary, one house property, other sources, and agricultural income up to ₹5,000.
- ITR-4 (Sugam): Resident individuals, HUFs, and firms (excluding LLPs) with total income up to ₹50 lakh from business and profession under Sections 44AD, 44ADA, or 44AE.
