Income Tax Utilities for Filing ITR-1 and ITR-4 for AY 2025–26 released

The Income Tax Department of India has officially announced the immediate availability of the Income Tax Return (ITR) filing utilities for Assessment Year (AY) 2025–26. This significant development allows taxpayers to commence filing their returns for the Financial Year (FY) 2024–25. The utilities for two of the most commonly used forms, ITR-1 (Sahaj) and ITR-4 (Sugam), have been rolled out and are accessible via the Income Tax e-filing portal at https://www.incometax.gov.in.

Key Details and Applicability of the Released ITR Forms:

• ITR-1 (Sahaj): This simplified return form is designed for a large segment of resident individual taxpayers. It is applicable to those whose total income does not exceed ₹50 lakh. The income sources covered under ITR-1 include:

  • Income from salary.
  • Income from a single house property.
  • Income from other sources, such as interest income from savings accounts, fixed deposits, etc.
  • Agricultural income, provided it does not exceed ₹5,000.

• ITR-4 (Sugam): This form is tailored for resident individuals, Hindu Undivided Families (HUFs), and firms (excluding Limited Liability Partnerships or LLPs). The primary criteria for eligibility are:

  • Total income up to ₹50 lakh.
  • Income derived from business and profession, specifically under the presumptive taxation schemes outlined in sections 44AD, 44ADA, or 44AE of the Income Tax Act.

Flexible Modes of Filing:

To cater to diverse taxpayer preferences and technical capabilities, the Income Tax Department has made these utilities available in both online and offline (JSON) formats. Taxpayers have several convenient options for preparing and submitting their returns:

• Online Form on the e-filing Portal: For ITR-1 and ITR-4, taxpayers can directly utilize the online form available on the Income Tax e-filing portal. This method is often preferred for its user-friendly interface and real-time validation.
• Downloaded Utilities: For those who prefer to work offline, the Department provides downloadable Excel or Java utilities. These utilities allow taxpayers to prepare their returns offline and then upload the generated JSON file to the e-filing portal.
• Third-Party Software: Taxpayers also have the option to use third-party tax preparation software. Many reputable software providers offer solutions that are integrated with the e-filing portal, streamlining the filing process.

Important Advisory for Taxpayers:

The Income Tax Department strongly advises taxpayers to undertake thorough preparation before filing their returns. This includes:

• Gathering Necessary Documents: Ensure all relevant financial documents, such as salary slips (Form 16), bank statements, investment proofs, and other income and expenditure records, are readily available.
• Verifying Pre-filled Information: It is crucial to meticulously cross-verify the information pre-filled in the ITR forms with actual financial records. This includes checking Form 26AS, which provides details of tax deducted at source (TDS) and tax collected at source (TCS).
• Reconciling with AIS and TIS: Taxpayers should also reconcile their income and deduction details with the Annual Information Statement (AIS) and Taxpayer Information Summary (TIS). These statements provide a comprehensive view of financial transactions reported to the Income Tax Department.
• Accurate Reporting: Ensuring accurate reporting of all income, claims, and deductions is paramount to avoid discrepancies, which could lead to notices from the Income Tax Department or delays in processing refunds.

Future Updates:

Taxpayers are encouraged to stay vigilant for further announcements from the Income Tax Department. Utilities for other ITR forms, catering to various categories of taxpayers and income profiles, are expected to be released incrementally in the coming weeks.