ITR-1 and ITR-4 for AY 2025-26 Now Live: File Online with Prefilled Data or via Excel Utilities
By Aaerm Law Associates | June 4, 2025
The Income Tax Department of India has officially enabled the online filing of Income Tax Returns (ITR) for the Assessment Year (AY) 2025–26 via its e-filing portal. As of now, taxpayers can file using ITR-1 and ITR-4—either through the online system with prefilled data or by using downloadable Excel utilities.
This move aims to simplify the tax filing process, increase efficiency, and reduce manual errors, especially for salaried individuals and small businesses.
🧾 Who Should Use ITR-1 and ITR-4?
Understanding which form applies to you is essential:
✅ ITR-1 (Sahaj)
ITR-1 is suitable for resident individuals whose total income does not exceed ₹50 lakh. It covers:
- Income from salary/pension
- One house property
- Income from other sources (e.g., interest)
- Agricultural income (up to ₹5,000)
✅ ITR-4 (Sugam)
ITR-4 is applicable for individuals, HUFs, and firms (excluding LLPs) opting for presumptive income under Sections 44AD, 44ADA, or 44AE. The form is suitable when:
- Total income is up to ₹50 lakh
- Income includes business or professional income on a presumptive basis
Both forms are available with prefilled data, minimizing the effort required for most users.
⚙️ Key Features of the New Filing Process
To streamline tax compliance, the government has introduced several notable features in the AY 2025–26 ITR forms.
🌐 1. Online Filing with Prefilled Data
Prefilled data reduces human error and speeds up the process. Information pulled from Form 26AS, Annual Information Statement (AIS), previous ITRs, and TDS returns is automatically populated.
💻 2. Excel Utility Option
For users who prefer offline filing, Excel utilities for ITR-1 and ITR-4 are now available. These files can be downloaded, filled, and later uploaded on the portal.
🔄 3. Efficient and User-Friendly Process
By combining automation and a simplified UI, the Income Tax Department has aimed to make ITR filing less technical and more accessible to the average taxpayer.
🧭 Step-by-Step Guide to File ITR-1 or ITR-4
Here’s how you can file your return depending on your preferred method:
🌐 Option 1: Online Filing via e-Filing Portal
- Visit: www.incometax.gov.in
- Log in using your PAN, Aadhaar-linked mobile OTP, and password.
- Navigate to ‘e-File’ → ‘Income Tax Return’.
- Select the appropriate Assessment Year (2025–26) and Form (ITR-1 or ITR-4).
- Review the prefilled information and fill in any missing details.
- Validate, e-verify, and submit your return.
💡 Transition Tip: Remember, always cross-check your salary slips and bank interest certificates with the prefilled data for accuracy.
💾 Option 2: Offline Filing via Excel Utility
- Download the Excel utility for ITR-1 or ITR-4 from the Income Tax portal.
- Fill in the required fields, importing prefilled XML files where applicable.
- Validate the form using the inbuilt utility functions.
- Generate the XML file and upload it back on the portal under your profile.
- E-verify your return using Aadhaar OTP, net banking, or EVC.
✅ Note: Offline utility is ideal for tax professionals and users with limited internet access.
⚠️ Important Notes for Taxpayers
While the new system is user-friendly, here are some important reminders:
- Update Your Profile: Ensure your PAN, Aadhaar, email, and mobile details are current in the portal.
- Double-Check Prefilled Data: Although prefilled, it’s your responsibility to verify income, deductions, and bank details.
- Use Correct Bank Account: Link and pre-validate your bank account to receive refunds smoothly.
- E-Verification is Mandatory: Without e-verification, your return is not considered filed.
📝 When Should You File Your ITR?
The due date for filing ITR for individuals (not requiring audit) is expected to be July 31, 2025. Filing early ensures:
- Faster refund processing
- Time to correct errors if any
- Avoidance of last-minute technical issues
If you miss the deadline, you may have to pay a late filing fee under Section 234F and lose out on some deductions.
💡 Benefits of Filing Early and Electronically
Many taxpayers wait until the deadline. However, filing early gives you:
- Peace of mind and reduced stress
- Faster refunds credited directly to your account
- Lower chances of errors due to last-minute rush
- Time to revise if mistakes are discovered later
Moreover, the prefilled ITR forms make it significantly easier for salaried individuals and small traders to comply on time.
🤝 Why Aaerm Law Associates Recommends E-Filing
At Aaerm Law Associates, we advocate early and accurate tax compliance. Our team of tax professionals regularly assists clients in:
- Verifying prefilled data
- Claiming correct deductions under Section 80C, 80D, 80G etc.
- Avoiding mismatch with AIS/TIS or Form 26AS
- Ensuring audit requirements are met, if applicable
With the new utilities, taxpayers have a better opportunity to file correctly and stay compliant.
📌 Final Thoughts
The release of ITR-1 and ITR-4 for AY 2025–26 with enhanced features like prefilled data and downloadable utilities is a welcome move toward a more transparent and digitally inclusive tax system. Whether you’re a salaried individual or a presumptive income earner, these updates will simplify your filing journey.
As the government continues to enhance the e-filing ecosystem, it’s now up to taxpayers to use these resources efficiently and timely.
