The Income Tax Department has officially enabled the Excel utility versions and online filing facility for Income Tax Return (ITR) Forms 1 and 4 for the Assessment Year (AY) 2026-27 corresponding to Financial Year (FY) 2025-26. Eligible taxpayers can now download the utilities and begin preparing their returns through the Income Tax e-filing portal.
The announcement was made by the Income Tax Department through its official social media platform X (formerly Twitter), wherein it stated:
“Attention taxpayers! The Excel utility and online filing for ITR-1 and ITR-4 for AY 2026-27 has been enabled and is now available for taxpayers on the e-Filing portal.”
Who Can File ITR-1 and ITR-4?
ITR-1 (Sahaj)
ITR-1 is applicable for resident individuals having:
- Income from salary/pension
- One house property
- Income from other sources (excluding lottery and racehorses)
- Agricultural income up to the prescribed limit
- Long-term capital gains under section 112A up to ₹1 lakh, subject to specified conditions
ITR-4 (Sugam)
ITR-4 is applicable for:
- Individuals, HUFs and firms (other than LLPs)
- Taxpayers opting for presumptive taxation under sections 44AD, 44ADA and 44AE
The release of utilities at an early stage provides sufficient time for taxpayers and professionals to prepare and verify tax data before the due date.
However, Taxpayers Should Avoid Filing in Hurry
Although the filing utilities are now available, taxpayers are strongly advised not to rush into filing their income tax returns immediately. At present, important tax-related statements such as: Form 26AS, Annual Information Statement (AIS), Taxpayer Information Summary (TIS), may not yet be fully updated on the portal.
Further, details relating to, Tax Deducted at Source (TDS), Tax Collected at Source (TCS), Interest income, Dividend income, Securities transactions, High-value financial transactions are still in the process of being reported by deductors, banks, financial institutions, employers and other reporting entities.
Why Early Filing Without Verification Can Create Issues
Filing the return before proper reconciliation of data may lead to several complications, including, Mismatch in income reported, Incorrect TDS claims ,Defective return notices, Processing delays, Refund withholding, Demand notices from the department, Requirement for revised returns later, Taxpayers should therefore ensure that all information appearing in, Form 16 / Form 16A, Form 26AS ,AIS/TIS, Capital gains statements, Interest certificates matches with the income being disclosed in the return.
Recommended Approach for Taxpayers
Before filing the ITR for AY 2026-27, taxpayers should:
1) Verify Tax Credit Statements
2) Reconcile Income, Match salary, interest, dividend and capital gain income with supporting documents.
3) Wait for Updated AIS/TIS, In many cases, banks and deductors upload data gradually over the next few weeks.
4) Cross-Check Deductions and Exemptions, Ensure proper claim of deductions under Chapter VI-A and exemptions wherever applicable.
5) Consult Tax Professionals if Needed, Complex cases involving capital gains, foreign income, business income or multiple deductions should ideally be reviewed professionally.
Recommendation:
The activation of ITR-1 and ITR-4 utilities marks the beginning of the return filing season for AY 2026-27. While taxpayers may now begin preparing their returns, prudence and verification remain essential before actual submission.
Filing an accurate return is always more important than filing an early return. Taxpayers should patiently wait for all relevant financial and tax information to be updated on the portal to avoid future notices, mismatches and unnecessary compliance issues.
A careful and reconciled filing process will ensure smoother processing of returns and faster issuance of refunds.
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Disclaimer: The contents of this article are for general guidance and academic discussion only and do not constitute professional advice. The author assumes no responsibility for any action taken or not taken based on this article, as tax implications are subject to factual variations, statutory amendments, and judicial interpretation
About Author: The author is a Practising Chartered Accountant and founder of D Rahul & Associates, Navi Mumbai. He can be reached at ca.rahuldwivedi@gmail.com or +91-9004485377.
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